1st Rental Purchase Using Commercial Loan

[Chris Nerio]

Hey everyone, I'm looking to purchase a 4 unit property. I have an LLC set up and was approved a commercial loan with the following terms:

- 20% down

- 5.25%

- 20 year ammortization

- 3 year fixed at 5.25% and then I have to renew the loan at the prime rate in 3 years

My question is, should I look for a better loan or does this seem like a good deal for a first time buyer. 

[Gaspare U.]

I would look for a longer term, 3 years will fly by. No less than 5 and I would try and compare rates at 5, 7 and 10. I rather lock in the longer terms.