Section D1-4.1, Information Relating to Transfers of Ownership Applicable to All Mortgage LoansD1-4.1-01, Determining Whether a Transfer of Ownership Is Permitted (11/12/2014)[...]D1-4.1-02, Allowable Exemptions Due to the Type of TransferA transfer of the property [...] to [...] a limited liability company (LLC), provided that: the mortgage loan was purchased or scuritized by Fannie Mae on or after June 1, 2016, and the LLC is controlled by the original borrower or the original borrower owns a majority interest in the LLC, and if the transfer results in a permitted change of occupancy type to an investment property, such change does not violate the security instrument (for example, the 12 month occupancy requirement for a principal residence).Note: The servicer must notify the borrower that a property transferred to an LLC must be transferred back to a natural person prior to any subsequent refinance application in order to meet Fannie Mae’s Selling Guide underwriting requirements.

I am an investor myself, syndicator, and a principal commercial retail broker.Are you paying all cash for it?

Also throw in, e&o insurance does not cover you when you are a principal to the transaction.

2) Will the principal be high enough for a bank to issue a mortgage at three years, or after?

I'd also charge them a principal payment + interest to cover my expenses + whatever my desired profit is. 

Of course you're not going to get a 30-year fixed with a commercial loan.If you do a loan from your investors, are you returning principal with each payment?

@Joe Walton If the lender will lend you $100k that will be your principal loan amount.

I proposed to the owner a payment of $100 per month principal and $25 a month interest with a 7 year balloon and she agreed.   

Also, your cash flow as is is miserable, i’d want at least 7% cash on cash, some people want higher (10%+) but if I’m paying down a lot of principal on a high quality property that is in theory a cash on cash return that I am just deferring until sale or refi.

Profit and Loss by Class lists my revenues and expenses but of course does NOT include principal payments and capital expenditures.