Loan Terms

[Rob B.]

I've been investing in SFRs for the past three years, but I'm trading up to start investing in small apartment complexes. We're about to close on a 16 unit apartment complex with assumable financing, which is fully amortized with another 23 years to go. 

I know that most MF loans are balloon payments after five years or something similar; my question is: is it common to refinance the loan or to get another loan when the balloon payment is due, or is it not worth it? What I love about real estate is that I can hold it for 10-20 years and I'll have a steady, exponential stream. Switching to Commercial Real Estate, I'm worried that those balloon payments might come due when the market is down or when I can't sell.