Investment Info:Large multi-family (5+ units) commercial investment investment in North Carolina.Purchase price: $500,000Cash invested: $150,000 18 Unit C-Class Apartment Building (purchased in November 2018)What made you interested in investing in this type of deal?

On the commercial end, where I operate, deals are brought to us by brokers or lending institutions wanting to get rid of a note either in default or one that no longer fits their portfolio.

There are too many variables to give a one-size fits all answer.Personally, I would put $1M into commercial syndications (money backed by a hard asset that historically performs well in market turmoil) and diversify the remaining $1M across notes, NNNs, SFHs and some S&P 500 index funds.

This also apparently is a 'commercial loan' , with 20% down, 25 year loan, and ARM with refinancing every 5 years.I've been given data on income/expenses over the last 3 years for this particular unit, along with data from our lender.  

It was a four unit property but since it was investment property they insisted it had to be commercial financing.

Thank you very much for your help, to clarify, I was able to get a commercial loan for the purchase of a single-family home for rental .

This is almost always the case with a commercial policy. 

Hey BP friends, I've been watching Austin's real estate for a while now and decided to dig into it deeper in NW corner of Austin and Round Rock/Cedar Park area. Downtown Austin is getting so expensive now and it might...

Note that the 1% rule in most cases will not meet a commercial lenders debt coverage requirements, which is telling-----The 1% rule is only a rule of thumb, and in most markets doesn't cash flow well enough either.

You need to consider this when you are calculating the cap rate.Also, have you bought a commercial property before?