Seeking cash out refi/ARM advice for SFR package deal

[Graham Nash]

Greetings, 

I'm looking at purchasing a total of 5-6 SFR, owned by 2 different individuals. My plan is to purchase with cash, refi, and pull out my cash. I know this is possible with one property.

Is it uncommon practice for groups of SFR?

My goal would be to use 1 loan to refi the package of properties. 

I assume this would loan would be an ARM.

Also, would the loan amount be based on appraised value of each individual property, or the income they generate based on current leases?

Thank you,

Graham