I recently set up an LLC for RI. I am purchasing my first SFH on an 80/20 credit line that also covers the rehab. I'm hoping to brrr it out. I'm buying it for 70k and the banks internal appraisal was 98k. My lender will give me a traditional mortgage once I rent it out. They will only finance for 20 years and the rate is only locked for 5 since I am a business. Is this pretty standard? Do I have any other options?
This is standard however banks usually also offer a 10 year term. I would start calling all local banks and credit unions because I have found 25 year term commercial loans on small investment properties.
From the bankers I've worked with and spoken too, yes this is pretty standard. However, if you shop it around to some smaller banks you may find something a bit longer.