Mixed use building BRRRR

[Kasie Kay]

Needing advice from someone with more experience. I just won an auction on a mixed use commercial/residential building. What is the downside of using a commercial lender to purchase, my own cash to rehab, and then refinancing?   Everyone always says don’t use your own cash…but why? What am I missing if I purchase, improve and refinance using commercial lending? Just More closing costs?  What is the advantage of using private money or hard money? Some private money lenders want me to put 30% down. If I can get away with putting 25% down on a commercial loan, what am I missing here? 

Thanks is advance!