Favorable terms for commercial multi-family?

[Chris Virgil-Stone]

I've been looking into smaller multi-family properties (up to ~15 units) and am wondering what kind of financing/terms are you seeing and what you consider favorable? Do you have a preferred lender or do you repeatedly shop for the best current rates? Depending on terms I'm looking at purchases up to $500k. 

[Diana Muresan]

The $500k commercial loans multi-units it's what I called the "gray area" as rates and terms are not ideal. You are better off to accrue a few 4 units since is residential and enter the commercial for loan of min $1 million. Freddie Mac has a great program for 5-75 units with loans starting at $1 million , 85% occupancy, 80% LTV, non recourse and low rates. I do a lot of residential multi units and sometimes buyers want to move up to commercial too quickly or as their first property which is not realistic. Most commercial loans also require you have the same net worth as the loan amount.