Could use some help understanding investment financing.

[Jason Boice]

I am new to obtaining bank financing on a deal. I have a couple questions that I am struggling to understand.

1) I called a few banks telling them I am interested in investing in a condo as an investment. I was looking for a 30year fixed with 25%down. The interest rates I am being quoted are significantly higher than friends of mine buying houses to live in. Additionally every bank I have talked to so far requires points to be paid. Is this just the nature of obtaining an investment loan or am I going about something the wrong way?

2) If I use the BRRRR strategy, once the property is rehabbed and rented, and I look to refinance, what is the best product to go for? HELOC or refi into a conventional mortgage for an investment property, which I am assuming will be similar to question 1 above?