Builder offered incentive we used for a 3-2-1 buy down.

@Bob Asad since you've lived in it for the two years you could potentially qualify for the 121 exclusion, giving you $250,000 of the gain tax free ($500K if married) like @Jeremy Ellis said. 

FHA option has a lower down payment but I'll warn you that not many sellers even want an FHA offer in my experience.

Which of the two, SBA or commercial loan, offers the best terms?

Remember, your day-to-day costs have increased, but so too have your client's.I work closely with an STR investor that just began offering co-hosting for AirBnB. 

VA loans offer competitive interest rates and no PMI, making them ideal for house hacking and multifamily properties.

However, I get people asking for a monthly rental all the time, so we offer it with a 25% increase to the normal rent.

Can you please let me know which lenders offer this option?

Feel free to reach out.

I work with a good amount of investors, and some advice I would offer is to not shy away from a deal bc it is not a "perfect" BRRR.