There are couple issues with this strategy, first you are disqualified person and rules dictate that all transactions must be arms length.

If you have functional arms you can swing a hammer.

Here a quick tip for when you are interviewing companies ask them this question "what are you steps to address a broken hot water tank"If they answer, send a plumber out and address the problem, you know they'll charge you an arm and legIf they say, they'll walk the tenant through trouble shooting steps like resetting the pilot light, you know they'll save you money 

We will be making improvements to the property, and are using our in-house property management arm.

At first i thought i was going to be able to do 15% down with a 30yr conv but didnt realize that the loan offered was a 20yr ARM, which didnt make since once we talked about the numbers more.

You're making explicit something I suspected, but needed to hear from a professional who's seen both sides of the fence. 

BrieTo give you a snapshot of DSCR lending right now, a cash out, 30 year fixed to 75% ltv with a couple of points (depending on the loan size and a 4 year prepay) is in the high 4% range with a DSCR loan; no balloon or ARM and no LLC required. 

The buyers attorney drafted the closing documents, at closing day my attorney explicitly asks the buyers attorney about escrow, saying isn't there supposed to be some in there?

@Stephen McGrathSo you are saying that you got a 5/5 ARM? 

Non arm's length pricingReadily apparent circular cash flow,Form over substance, Preplanned, and even advertised in advance,what's not to like