They were willing to lend that way but at a commercial rate = 5.25% adjustable with a 5 yr balloon.  

I have a friend that has access to the MLS.

I am new to commercial real estate and am considering buying a building that needs some work.

I wouldn't assume that this experienced investor could also just get a regular commercial loan at typical rates 10% down and 5% interest rate. assuming again they have proven to this lender in the past that they are extremely low risk?

My interests are raising capital for acquiring commercial property, maybe wholesaling, and repositioning. 

Again live there for a year or two while we save funds for the next property.The next property would be a bit larger, it would be bigger than a four-plex I believe a commercial loan would be required?

I own a commercial property that I still have a note on.

We have already had the property zoned commercial. 

She mentioned a commercial policy or getting a second umbrella policy under another carrier? 

A commercial loan is typically 70% LTV and with a $70,000 appraisal you would be able to refinance at $49,000 on each property.