commercial loan question

[Brian Dunleavy]

Hi all,

My partner and I are looking to purchase our first property - a duplex with a separate commercial building on the property. All three units are rented out. Two residential units and one barber.

Because the property has the commercial unit on the it, banks are not giving us a loan and told us we need to get a commercial loan. So far the only loan that we can find is:

20% down/ 5 year commercial loan. First 5 years is 5.5%. Every 5 years the loan is re-amortized for the last 15 years (renewed every 5 years - 20 total). It's my understanding that our payment amount will change every 5 years when this happens based on principle and federal interest rates.

Since this is new to us, I wanted to run it by the forum and see if there is anything we should be concerned about with this deal or any other suggestions.

TIA