What are my financing options on this property?

[Brad E.]

Hi all - I found a property that is a single lot and has 2 separate standing structures that are 3 bed/1 bath houses.  It appears to be a decent deal:

Ask is $129K

Rent (total) $1500

I reached out to a local mortgage broker I have used in the past to ask about financing and he said they would not be able to finance it with a traditional mortgage because of the fact that it is 2 separate buildings and advised me to reach out to a local bank that does commercial lending.

Reached out to the commercial lender and was told I could get a 5 year ballon loan amortized over 20 yrs.  I am not familiar with the intricacies of this loan type but I understand how a balloon loan works at a high level.

I am wondering what advice someone might have regarding this situation.  I'm thinking the 5 yr balloon might not be a bad idea, but not clear on the risks and not sure what my options would be at the end of year 5.  Could I refinance to another balloon?  I do not anticipate having the cash to make the final balloon payment at that time.

I feel like there is some opportunity here but not sure the best options for my financing.   Thanks for your thoughts.