Balloon mortgage

[Eribeth Peñaranda]

Hello:  My husband and I are looking at buying our third investment property. We have two single family homes rented with positive cash flow - we paid them off (did not know any better).  Now looking at multifamily - 16 units, looks good in paper, good cash flow; however, the bank, Wells Fargo, offered us a loan with 25% down, and ballon mortgage due in 10 years with the option of refinancing ( first time we heard of it). We have good income and good credit score.  Two local credit union offered loans with 5 year amortization....

Property description: 16 units, listed at 445,000, we estimate 1,000 monthly cash flow.

Please advise!!!