Are there 30 year SFH investor loans?

[Ben Wernert]

Hey BP!!! Hope all are well!!!

I just wrapped up my first BRRRR deal and pulled all but some closing costs back out. I've got a local lender that I've had a long term relationship with so for me it was an easy choice to get my first deal done, however they do a max of 25years, and a 5% rate on a SFH. I'm also working on a portfolio type loan with them for future purchases, however based on the current rates I know I am leaving a little cash flow on the table with the cut in the term, and the rate slightly higher. I'm not in it solely for the cash flow as I work full time however I've done the math and in a 10 year period the cash flow seems to add up faster than the equity / pay down will based on what I can come up with. If my math is incorrect please let me know....I am perfectly fine with being proven wrong. Also this lender considers it a commercial property so when I guaranteed the loan for my LLC it does not show on my personal credit (which is what I want).

I'm also looking long term at closing costs....those things add up!  It took 2 closings in this deal

1. At purchase I paid cash so there was $800 in closing costs

2. I financed and pulled my cash out and paid an additional $1700 in closing costs

3. When / If there are secondary lenders for LLC / commercial loans (that do not hit my credit) there will be I'm assuming another 2k after the "seasoning" period.

So now I'm $5500 in closing cost alone....

My thoughts are if my lenders will close fast enough for my sellers I can rid myself of the cash closing unless it's just a crazy good deal, but I would love any feed back on ways to move into a 30 year when I'm pulling my cash back out.

Also should I use the portfolio portion of the loan to acquire and slowly move them into 30 years?

Thanks everyone!!!