at some point I will pay off my rental unit or get the balance pretty low and then I need to decide what to do with the equity. Could just save up cash for some combination of the following options, just trying to provide context. My question, which really covers many aspects, is what is the best practice for making the most of the situation. From what I have studied it seems most commercial loans are 12-15 year terms at decent rates with 80% L2V or a 10 year term loan amortized at 30 years with a balloon payment,which seems crazy and ridiculous to me. I realized that people must refinance after the initial term or have saved the balloon payment. The more logical option is once again to refinance 10 years or so and amortized 20-30 years.
So going the 10year term amortized:
1) is refiancing difficult(assuming you are a good landlord, records, occupancy, etc), what if you are FIRE'd and only show 20-30k HH income?
2) if rates change how does this effect the refinance payment? I guess if you are not trying to get money out and just continuing to pay down then your payment would keep going down(assuming you amortized again for 30 years).
I'm sure biggerpockets has something about this, but i don't like their forum format and can't find the search tool that will work within the forum subsection. Anyways, I would rather just hear someone personal story of how they did this.