I am considering buying a 9 unit property, but to get it I have to use a commercial loan. This is my first foray into rentals, so I'm not very comfortable with the terms. The loan would be a 3 year loan with a 20 year amortization. This makes me uneasy, because the bank could decide not to renew the loan after 3 years and ask for the entire amount (which I can't afford).
The other option is a 4-plex with a standard 30 year loan at a slightly lower rate. The 9 unit is the better deal I think, but the loan terms are giving me cold feet.
Does anyone have any experience with these 3 year loans with 20 year amortization? The bank sounded like they do them all the time, and unless there is some major issue they will just renew it around market rates every 3 years.