Multifamily Loans and Refinancing

[Benjamin Seibert]

I am shopping around for refinancing on a duplex I own. However, after calling almost a dozen banks none will lend greater than 70% LTV other than a commercial loan. My only worry with a commercial loan is that its a 5/5 ARM rather than a 15 yr or 30 yr fixed. I'm allowed an 80% LTV with the commercial loan, which will help substantially with getting back my equity on the deal (I used the BRRR method) but am slightly concerned about going with a 5/5 ARM rather than a fixed-rate. If I go with the 70% LTV fixed I will have to leave a chunk of funds in the deal... Is my worry justified or is the commercial loan the best option? I am leaning towards the commercial loan to get the most equity to be able to deploy again. Wanted to reach out to see what others thought and what your take on the financing is. Thanks for any input!