Refinance a traditional mortgage into a commercial loan

[Vance Van Krieken]

Topic:

Is it possible to refinance out of a VA loan, traditional mortgage, and personal loan into a commercial loan?

Situation:

I am in the process of a deal that includes two separate but identical triplexes that are on two separate lots which connect. Each triplex is on the market for $175K. They are each appraised at approximately $155K.

Tools at my disposal:

VA loan, personal loan, and a traditional loan.

Structure of deal:

I would like to purchase two triplexes for a total of $300K and structure the deal as such:

Triplex A: traditional loan + personal loan. I would offer a traditional loan at 70% of 155k= $109k. The 20% down payment for this traditional loan would come from a personal loan at $21.8K.

Triplex B: Use VA loan at above market value for $191K.

Conclusion, the purchase of both units would total $300K.

Break Down:

Personal Loan at $25K @ 6% interest for 5 years = $483.32 a month

Traditional Loan at 109K: P&I $464 + insurance $67 + Taxes $75 + = $603

VA Loan at 191K: P&I $1,000 + insurance $67+ taxes $127= $1,194

Total expenses= $2,281

Earnings/ Rent:

Currently at $500 per unit (could raise to $550) x 5 units = $2,500

1 roommate at = $250

Total $2,750

Conclusion:

At the end of 12 months of occupation I would like to roll these three loans into a single commercial loan at $300K + 20% down at $60K.

Topic for discussion:

Has anyone heard of such a method i.e., Rolling other loans into a commercial loan due to the fact it would be 6 total units?