My personal opinion is that, while shifting investments into real estate may be the right move for your situation, there is likely a lot of work to be done before you get to that step to avoid a potentially costly mistake. 

That could be you personally or an LLC. 

Quote from @Stanley Nguyen: I have been lending funds to a close friend of mine for a rate of 8%. 

If you plan to keep your current home as a rental, a home equity loan or HELOC could help fund your new home’s remodel while keeping your low mortgage rate.

If the cosigner is not contributing funds but is just helping secure the loan, whats a fair way to compensate them?

Personally, I bought a 3 bedroom house as my first purchse and lived there while renting bedrooms and 2 bedrooms rent paid all of the mortgage payment and 2/3 of the utilitites.

When I started there was no Facebook, but now I have a personal page, business page on Facebook, website, linked In, and they all say that I help people with their real estate issues.

If you want less leverage simply put down the funds you would use to pay down the 6.4% rate on the new property so you are at say 60% loan to value on the new house.

The advantage with the bank was minimal closing costs, a good interest rate, and a draw system so I could get funding as I completed each rental unit. 

Also, don't take the funds up front, make draws as you go.