Looking to buy my first property. 2 separate 5 units.

[Jonathan Ramsuchit]

Hello everyone,

I am looking to buy a 2, 5 unit residential building for 400k. The owner is selling it as a package. The gross rent for both buildings is 84k and Noi before debt is 65k without accounting for reserves or vacancy. It seems like an incredible deal.

I would like to know if I have to do a commercial loan for this. I feel commercial loans aren't ideal since they have ballon payments and prepayment penalties, and Im assuming that would spread my depreciation over 39 years instead of 27.5

Is there a way to get a conventional loan either with a small bank, or portfolio lender that would maybe have friendlier loan terms?

It is also very important to me to be able to to a cash out refinance or HELOC on the property. If I took a commerical loan would I be able to take cash out of it similar to residential properties?

Thanks a lot guys.