Conventional or Commercial Loan

[Dave Garlick]

I am in the process of reviewing 2 duplexes owned by the same landlord for my first buy and hold deal. I originally went to a local bank to get preapproved and that came back fine for the dollar amount. When I asked if he could bundle them into a single loan he said he couldn't bundle them but his commercial lender could. I've read a little about commercial lending but I'm not all the well versed on the pro's and cons.

If I remember properly, commercial loans are usually short term loans of 5 to 10 years with a balloon payment. Is there any advantage to going this route given the fact I will probably have to refinance before the balloon is due and probably at a higher interest rate at that time?

Are there any other things I should consider when looking at a commercial loan vs 2 conventional loans? 

Dave Garlick