If you 1031 into a 2-4 unit property and lock in a 30 year fixed rate loan at today's rates, you can be less concerned with higher interest rates in the future because when the term of the loan is through, you will own the property free and clear.However, going with a commercial loan with a 15 year term will open you up to interest rate risk.

Why should the bank take all the risk when you won't? 

We do not put much weight on medical collections, almost anyone can have those issues and that doesn't make them a bad risk as a tenant.

Flipping isn’t cheap either, unless you have a partner to help mitigate risk you still need reserves.Get POF from hard money but think long and hard about what you will be doing with little to no money in the bank

They don't tend to take risks and are not creative.

I don't know that I'm in the financial position to be taking the risks of investing just yet.

Also, I want to add, if you're putting together a proposal or even an OM, then I would add the risks involved with investing.

On a side note, if you are going for cash flow, I personally would not expose myself to that much risk for only $900/mo across 37 units. 

The bank is taking a serious risk going second position for the remainder of the value, a slight market change would put them underwater. 

Originally posted by @Fradel Schaechter:@Benjamin CowlesIf you know you won't have the heart to 'fire' him if he does not know how to do the work well, decide before hiring him if your willing to take that risk.