Financing First Deal-First Post

[Jared Leonhardt]

First Post! and working on my first deal! Quick back story. I built my first house four years ago. Lived in it for 3 years and sold for a nice profit. Bought a 113 year old house for more money than I ever thought I would spend on a house...and then completely gutted it to the studs and rebuilt. So let's just say I'm a little cash poor at this point. 

What I do have is a fair amount of equity in my primary residence. My plan is to use the BRRRR strategy on 1-4 unit properties due to my experience building, rehabbing and my background in HVAC. I'd like to use a HELOC for my down payment and rehab costs.

Watched the webinar last night and decided to get the ball rolling. Contacted my local credit union today inquiring about loans for investment properties. They offer a commercial loan for 20% down, 25 years. The rate locks in for 5 years then adjusts to the current rate and locks in for the next 5 years etc... The rate is 6-6.5% today in my price range. As long as I can prove that the property will be able to sustain itself and flow cash I will qualify. I can refi into the same loan after 6 months.

My question is if this is pretty standard for a property I won't be living in? Are there better options? Maybe it's a good initial loan to purchase but there is a better way to refinance? 

Any input would be greatly appreciated!