I use both as a RE investor between commercial and residential as both can be used on 1-4 unit properties (non owner/investment occupancy).The pro's of commercial/portfolio financing from local credit unions and community banks are that you can:- talk to a local banker/lender who is interested in building a relationship with you over time and is flexible to make a loan as long as its financially prudent and you show a track record- ability to build a track record with- less documentation scrutiny than a fannie/freddie conventional loan which is more ridged because it needs to be sold to the secondary market so all boxes must be checked to do so (otherwise the loan is unsellable or undeliverable)- is cashflow based via debt coverage ratio or DCR method of qualification (Net operating income / debt service) - can fund to LLC's, entities, and businesses with personal guarantee (PG) usually- can do unique loans like cross collateral or blanket notes across an entire portfolio, can do rehab/construction + permanent financing into one (one time close products), can do soft liens and releasable upon progress on your projects so you can leverage equity with temporarily encumbrances, unique disbursements on credit facilities,etc Hope that helped compare the cash out options.

I guess my point is - I think a lot of businesses are prepared for an economic slowdown, but who is prepared for a complete stop of all production?

There's power in knowledge.As far as your analysis:Closing costs will likely be 2X this on a commercial property.I'd plan for more in initial repairs, especially if the last unit isn't finished.Your mortgage expectations aren't in line with most commercial products.

If you want to know more about creative financing, I highly recommend you read Brandon Turner's The Book on Investing in Real Estate with Low and No Money Down.If you have any other questions or just wanna chat, please message me at anytime!

Hi Chancellor,The VA loan is a fantastic product to kick start your investing career. 

We don't leave any food products for guests. 

Especially in the first 12 months after buying a property, things just always seem to need fixing; prepare for it accordingly.To your FHA question - again to TJ's point - if you satisfy the 1-year live-in requirement, you can purchase another home after 1 year and use another low-down-payment product (though I'd recommend a conventional 5% down loan each time > FHA) and do another low-down house hack.

They won't (or shouldn't) give you specific information about their borrower, but should be able to answer any concerns you have regarding their product and your property.

These are all great initial questions to answer as they'll better steer you towards a certain product and financing terms.  

I can recommend shecky who chimed in above with hrre, they run a tight turnkey ship with a good retail product in indy.