Cash out - Help me make sense of this loan options

[Jonathan B.]

Hi Guys,
Have several SFRs, mostly cash bought, all of them are valued at +40% of my investment,

I want to pull cash out of a few of them and keep buying more distressed properties-

Given that all of these will fall under a commercial loan criteria (llc) , I was offered the following terms:

6% @ 20 year term with 5 yr ARM and than fixed for the following 5 years, which is an average minus offer , i guess(?)

this loan will substantially hurt my cash flow, although still positive.

Me being mostly cash-flow focused right now - will it make sense to try and get and a couple of years "Interest only" loan at a conservative 50-60% LTV?

as far as the risk involved with IO loans - apart of potential fluctuating values (which i dont foresee it it dropping even close to 40% anyhow) what other risks i am facing here?

i am having a hard time understanding how sending the principal portion to die off at the bank better then me keeping it and re-investing ?
   

appreciate your input,

[Brady Morgan]

Because I'm BRRRRing, the rates vary by rehab size and some other factors but generally they are low 6% for the product I described with a 100k purchase and <30k rehab, ARV around 170k.