Second mortgage or commercial loan?

[Nate Pucel]

All,

I just got an offer accepted on a HUD home. It's my 1st investment property. Got it for 40k, will need approximately 20k to get in into renting shape. My real estate agent suggested I go the commercial loan route as I just bought my own home a half year ago in June. However, the agent he suggested actually happens to be my friend, and my friend is currently using my agent to look for a new home. I'm suspicious he's using me to gain favour so his customer keeps using this agent during his home hunt, however I'm new to this and could be over thinking it. Thoughts on what would be more cost effective for me, commercial loan or try and take out a second mortgage loan??