Which loan would you pick?

[Fredie Robinson]

Hello all,

I'm about to refinance my first BRRR project and was wondering which loan you would take. My end goal is to produce enough passive income to do REI full time. So the 20 yr loan looks like a better fit for the cash flow, but I'm a little worried about the interest rate after the first 5 years. The 15 yr loan looks ok but if I continue on that route, I will need twice as many properties to hit my freedom number. What do you think I should do?

20 year commercial loan

This loan is fixed for 5 years @ 4.75% and then is prime plus 1 after that for the remaining 15 years. I can refi after the first 5 years if need be.

15 year commercial loan

This loan is fixed for 10 years @ 4.49% and then is prime plus 1 after that for the remaining 5 years.