I have a client interested in a property with 11 units, and he's looking for a commercial loan.

You could say they are FDIC insured to an extent but claims to be made whole on a failed bank to get reimbursed by the FEDS can take a very long time in some cases.The NNN even if return was 5% you have hopefully property appreciation value long term, tax depreciation against the asset, rental increases, etc. you do not get with the bank.So my clients unless they are buying say a 6 million and up single tenant where I can land 7 plus cap rate above the debt a little those smaller deals sub 4 million do not work unless they are paying all cash or have a tiny loan like 25% LTV so the high interest rate does not affect cash flow that much.So what if someone HAS TO buy with 1031 for large taxes. 

The deal is structured to pay 15k to seller, 3k in arrears on the loan, and 12k to the wholesaler.

I have 8 loans locked in < 3% for 15 years so I don't mind having loans on them.

Is there an existing loan on the building?  

So, if I am putting down say 20 percent on a new loan for a vacation rental, my realistic goal should be "Let other people pay off the rest of my investment for me."

Anyone have experience using a FHA 203k loan in LA before?

I know that there are low down payment loans for primary residence.

Portfolio loan through a local bank that we have a good relationship with.

No idea how to deal with the 2021 originated underlying mortgage loan with the owner's share of the current principal due of $200,000.