Commercial vs conventional for investment home(s)

[Richard White]

Hi, all. I began working with a commercial lender when I was offered on a 6-plex unit in my neighborhood, which was 80% rented. I was going to convert the open unit to short term and then 2 others as leases expired. Someone else made a better offer - I lost the property. I am still looking to purchase another property - possibly two - but I'm starting to think I would be better off with a conventional lender, even at the same bank. I won't have any problems qualifying, and the rate should be at least 1 point lower than the commercial loan, plus 30 years as opposed to 20.

I've already set up an LLC and offered on another single unit property, but under my name. I know I don't have to use the LLC, but is there any benefit for continuing with the commercial loan, or should I switch to a conventional, residential loan?

Thanks in advance for your advice.