I have also seen property managers offer risk mitigation fees for people with below 3X income or lower credit scores.

I'm going to have everything inspected to mitigate the risk, but I guess anything can happen...

The OP also went to a bank that quoted him fairly high interest for a commercial loan...My post was stating that if a bank tells you that you have to use a commercial loan for a small rental (sub five units), leave the bank and go find another one that knows how lending works for investment properties.Maybe the bank he went to knew what they were saying and wanted to mitigate their risk by giving a higher interest rate commercial loan to a new investor?

No way you can mitigate that other than screening the tenants correctly. 700+ credit score, income 3x rent, no background or history.

Both have risks but learn how to mitigate them.Good Investing....

They are mitigated by knowing the law and following it, and by knowing the market, the property, the borrower, and the deal.

The risk is mitigated as much as possible from this scenario while maximizing profit.  

Lastly, when you are running your #'s for cash-flow in the long-term loan, I'd use a rate of 8.5% to mitigate against the FED rate hikes to come.

This is helpful to know and we address it right away so we can mitigate damages.Electricity, Natural Gas and Oil are three utilities in our area which do not become a lien on the property if left unpaid.

Big removing them need asbestos mitigation.