Commercial vs regular loan on a 4 unit Multi Family

[Joel McGinley]

Which is better from a tax and profit advantage.  A commercial loan, term of 20 years, with depreciation or a regular loan with term of 30 years?   Opinions, please?

[Todd Dexheimer]

Commercial loan pros.  Won't show up on your personal credit report and it will be amortized for less time and be paid of quicker. It will also not have seasoning periods and you get to deal with a business banker and business orientated setting that typically gets it. 

Cons of a commercial loan is they are usually fixed for between 5-10 years and the interest rate is often slightly higher. The traditional loan is in your personal name and tied to your credit. Payments will typically be less and you can always pay it off in less than 30 years. I would suggest this route for your first deal and wait to go the commercial loan route until you are maxed out in your personal. 

By the way you can get 1-4 family commercial loans easily. I have around 50 of them with local banks and even national banks