Mortgage: Taking a personal loan vs. commercial loan..the pros and cons of each( besides interest rate) and which one do you do on your investment properties?

@Jerry Padilla Great questions - I just messaged you privately.

@Jag C. If you are looking at single family rentals, why not go the route of conventional? You would need to qualify (documents) just like you would with a primary home, but you would be able to get a 30 year fixed interest rate. What price points are you looking for properties?

@Michele B.Thank you - very helpful. If you are just starting out, what kind of track record would commercial loans require? Would they need the cashflow history of the SFR property being purchased?

@Tony Giang personal mortgage is cheaper. Commercial mortgage requires less documentation, can close faster, and there are no limit to the number of mortgages that you can have.

Commercial loans will require track record. They will have higher interest rates. They allow you buy more than you DTI would allow. Liabilities if done right lower. Personal loan DTI and personal credit is important. If you have specific questions tag me and i will answer.

What type Mortgage loan do you use for rentals? What type Mortgage loan do you use for rentals?

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What type Mortgage loan do you use for rentals?

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