Hi Reddit! I apologize for my notes as I am in a rush to work and wrote this out last night.

Quick back story:

1. Purchased my home, refinanced and cashed out (15 year, 2.875%). Mortgage is $1300/month and renting out two bedrooms for a total of $850/month.
2. Bought a rental property in cash (from savings and refinance) and rehabbed ($122k total, renting at $1350/month, one year lease started August 1st).
3. Moving onto next property, $165k (already have a renter starting in October at $1500). I am putting $100k down and will borrow $65k. I initially was going to buy it with all cash but figured I would keep that $65k to keep looking for another property.
   

I called bank (local credit union) about my options and this is what I’ve been told...

Business Loan

• 3.5% for 5/1 ARM and then it would mature at year 10 (Can amortize over 15-20 year payback though to keep payment low)
• Closing costs roughly $1500, maybe less
• Complete a personal financial statement

Real Estate Loan

• 30 year at 2.875%
• Closing costs roughly $7000 since it’s going into a LLC

Refinancing Rental Property (business side)

• 5/1 arm 3.5%
• Cash out equity
• Determine loan payback

Which route would you take in continuing this process?