I need a commercial lender due to me not having 2 years work history in the US.I recently closed on a duplex, financed on a commercial note at 20% down.

Good luck getting that on commercial property.This all falls into the category of broker "puffery," which is why you really have to be on point with due dilligance.

I do currently have 50k in home equity which I plan to use for down payments and some repairs on my first propertyMy question is, is it profitable to purchase commercial real estate to be used as a rental property in smaller towns?

I was surprised when i found a local credit union with a commercial department offering 80% LTV.

I had to forclose on a loan we made but it was a decade ago and laws have likely changes, and it was a commercial building, not residential.  

Jeremiah, here's my advice in a five-year plan so A) is patience:Year 1) start a single-member home-business LLC for FREE using bank bonusesYear 1-2) build a 720-800 FICO for FREEYear 1-3) season the LLC for FREE and target a 80 PAYDEXYear 1-4) save some cash by cutting back for a few yearsYear 4) study 10,000 properties for FREE and build a teamYear 5) target a small starter commercial project (4 units or more)using the LLC PAYDEX and 800 FICO when it's a buyer's marketrelying on good financials for the property more than your job6) rinse and repeat and SKIP RESIDENTIAL!!!

What type of property are you thinking of investing in, commercial or SFH's?

IT will only complicate your access to cash and leverage without having any positive benefits.

You might find that there are restrictions you can't live with like prohibitions on parking a camper, boat or commercial vehicle - and even the colors you can paint your doors or shutters.Be sure to ask whether there are any pending lawsuits against the condo association or any special assessments in existence now or anticipated in the future.You shou;d also request a certificate of good standing from the condo association, meaning that the seller doesn't have any outstanding fines or fees. 

I have several years in the past where I was a licensed mortgage broker in both retail and commercial arenas (2008 We all know that story!!!)