Multifamily financing residential vs commercial

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Hi I am looking at a property in York PA that I can buy for $220-$240K. The NOI is ~$2,600 per month. The apartment currently has 4 units that are leased and were just renovated. There is a basement (5th unit), which was not renovated, but could be rented if renovated. I am attempting to get residential bank financing. The seller is selling it as a 4 unit to avoid having to deal with commercial financing (he thinks it appeals to more buyers). I could scrape together the 25% down payment, although it would leave me very thin in case of any unexpected expenses came up (personally and rental related) and would leave me with large tax bills as I would have to sell investments from when I was young. I am wondering if I might be better off going for the commercial loan? The NOI is very strong, and I feel like that is being neglected in the residential loan process (all they are worried about is hitting the 25% so they can sell the loan). Has anyone dealt with an issue like this or gone through the commercial loan process?

I’ve done several commercial loans on multi families. I have been successful getting seller to take back a second for a good portion of that 25%. You may be able to get a private investor to do short term, 3-5 yrs. as long as the cash flow supports it.