advice on commercial loan terms
Hello! I am looking at a property that includes 6 homes, 1 duplex and a larger home that rents by the room. He'd like a cash down payment and as he states it is a "commercial loan that needs to be renewed every 5 years. 400k at 4.75%" that is assumable. Are commercial loans assumable? My mini research said likely not. And, it sounds more like a balloon, not something you just renew. Isn't that what's common?
It's in a good area and lakeside. The place will need work but I see potential with it. It is currently almost fully rented. There is a similar place next door that is taking off with cottage rentals and a boat storage and launch.
I thought it might make a good vacation house hack. I'm running the numbers but still have a lot of blanks to fill in for expenses. I'd appreciate any input and/or advice!!
Thanks so much!!