Loan options for multifamily

[Jay Malaviya]

Hello BP community, really need your advise here.

We are a group of 5 people wanting to invest in multifamily residential property. This is our very first time and really confused whether to go for conventional loan or commercial loan.

We don't want our names on loan since it will affect our personal future loans down the road so we thought about forming an LLC but LLC needs commercial loan and interest rate is higher for that so difficult to maintain positive cashflow.

I know I can’t have the best of both worlds but really wondering how do newbie investors go about this? Any advise appreciated.

I checked about due on sale clause too so transferring the loan on LLC later is also not an option.