Commercial Loan vs Residential Loan on a Packaged Deal
I am under contract to purchase 7-units multifamily (3-unit + 4-unit on parcels next to each other). I can either do one commercial loan at 4.5%, 5 year fixed rate, the typical penalty 54321 or two residential loans at 4.375% (or lower) for 30-year fixed with no prepay penalty. I would like to start building a real estate portfolio and have that portfolio grow. If I take the two residential loan, would it affect my ability to borrow on the next commercial loan (which is based on property on my net worth)?
Would the lender allow me to put both properties under the same LLC? One attorney recommends realty trust rather than LLC. Which one is better?