Financing for a Package Deal

[Yolanda Columbus]

Howdy ladies and gents,

I'm considering making an offer on my first multi-family property.  It is a package deal in TX with 2 duplexes and a single family home; so, it contains a total of 5 units.  The seller is willing to finance but only as a commercial loan.  Financing will include a balloon payment.  This has created a couple of questions

- What are the cons of commercial loans in seller-financed deals?

- When the balloon payment is due, will I be able to refinance it as a commercial loan? Since each property is considered a separate lot or plat, do I have to finance it as a residential loan?

Yolanda Columbus