Shop in small local banks.

Looking for a commercial lender for a deal in Fall River, MA. I have a sale leaseback deal with a single tenant that will sign a ten year lease. The numbers net out to an 11+ Cap Rate. Industrial property with several...

The bank has suggested I borrow the full 80% of the $150,000.

There has been so much development  in the past that it has really messed up the drainage in the Houston area, it doesn’t take a lot of rain to get the loacal bayous and water ways to break over their bank.

You are the owner of the property and the other party acts as a bank.

Besides setting aside $400/unit, how much cash will a bank want me to have on hand or available? 

@Daniel Brown Yes, some banks will HELOC based on your tax assessment after the house has been “seasoned” lived in for 1+ year.While this would save you the $500 appraisal fee, it likely won’t benefit you in this case.You want a formal walkthrough / appraisal.

The banks here will not finance assignment fees.

Also it was really cheap for commercial with a local bank. 4.15% 25 year.

If not it might be worth looking into going to another bank or CU that does have a promotional first year rate to open a new HELOC with.Some other advantages or disadvantages of the HELOC could be that you wouldn't have a draw schedule or fund control requirement that you'd likely have with a construction loan, which can be laborious.