Seeking advice for financing in Illinois

[Nicholas Pantaleo]

This is my first post as I am a relatively new member to the site, even though I have listened to the show for a couple years now. I am finally getting started in real estate and am looking for advice or a funding partner. My current partner and I have 2 condos under contract for $60k each and currently renting for $1k each/month. With taxes of $2,200 each and HOA of $239 per unit, it seems like a pretty good cash flow opportunity. It was an off market deal and they are likely worth $80k+ each as well, the seller recently lost her husband and just wanted to get rid of them. We were going to do traditional financing, but the HOA reported that 92% of units are rentals, thus making it a non-warrantable condo, hence our predicament.

We have a couple financing options lined up.  One is a 10 year loan with 25 year amortization payments.  It is fixed for the first five years but then adjustable for the next five with the balloon payment.  This seems like a rough way to deal with a buy and hold having to refinance down the road in a rising interest rate market.

The second option is to buy it in cash then refinance out with a traditional bank on the wealth management side. My friend is a banker and verified they could do this up to 70% LTV at 20 years fixed even with non-warrantable. We could possibly pull out all of our money in this scenario, but more of the cashflow would be gone due to shorter term.

I could also look at hard money loans here, just haven't explored that option any more than the 3 featured for my state on Bigger Pockets website.  7% at 30 years seems to be what is coming up.

My partner and I would consider private funding or even giving up a majority of the deal to put none of our own money in as two other options.  Our long term goal is to build a portfolio of buy and holds.  Any advice for moving forward would be appreciated.

Thanks!

Nick