Make sure if you go into a contract (no option period), you require a substantial earnest money.

Subsequently, I went to Peoples United Bank and got a 4.5% commercial loan with a 25 year amortization, 10 year balloon with a one time renewal option. 

I have about 40k cash but was looking for financing options 

I think whenever you are getting advice from someone it's important to always consider the source to identify the incentives that person has to give a certain answer and how it colors their thoughts.

Another option here could be to buy down the interest rate a bit. 

You should talk to a few bankers about options.

These loans are more flexible in some cases.As for banks in Cleveland, some of the more investor-friendly options to consider might include:Huntington National Bank - Offers business loans and could be open to working with foreign nationals investing through U.S. corporations.First National Bank - Another local option that has experience working with investors, especially through corporate entities.

For an owner-occupied property with 5% down, consider a conventional loan with a renovation option like Fannie Mae  or Freddie Mac.

I’ve sourced a few off market properties that are closer to $400-$500.

Quote from @Robbie Shiver: Quote from @Tim Delaney: One option is to call around and talk to some STR managers.