Multi family Funding with Commercial Loans

[Darryl R.]

Hi everyone. I have purchased multiple SFR using traditional conventional lending. I am looking to start acquiring multi family properties. I am looking to buy a personal residence next year and was talking to my mortgage guy about my options. I have a W2 job, over 800 credit score and a decent amount of capital to invest. He was mentioning that if I take on multiple mortgages it will lower essentially my buying power because it will make my debt ratio profile tight and effect my buying power for my family home.

What I am asking is how do commercial loans work? I have read many posts on here but still unsure. Do I need to or is it best to create an LLC to put the commercial loan under? How do I pay myself from the LLC? Does having a commercial loan/mortgage effect my personal debt ratio? I am newer to this game and looking for education and advice. I see people are scaling and I am glad for your success and looking to do the same. Additionally what is desired or required experience to get approved for larger commercial loans, say larger than 5 doors in a property? Is it best to use hard money to get in and improve and then find the commercial loan? Obviously being able to do a cash out refi is best to keep moving. Is that possible with commercial loans? Thank you very much for your time and feedback.