I purchased it under a 5 year ARM loan back in 2019 as it had a preferable rate at the time.

Purchase price: $90,000 Cash invested: $1 Sale price: $190,000 off market, non arms length What made you interested in investing in this type of deal?

My lease is fairly comprehensive and among other things, it explicitly prohibits nailing and drilling into ceiling joists in unfinished basements and garages.

The most important thing about it is it's YOUR numbers, and when you make a deal it's important that the deal works for you and that's why I always recommend an investor to build their own sheet and not use someone else's explicitly...

Go armed with CAD values of similar houses that are lower than yours.

Small bank: my favorite lender can only do ARM's (5 year/7 year), 4%..my concern is I plan to hold #2 forever so I'd like to lock it in.2. 

This is not an "arms length transaction". 

My firm has a 1031 arm  if you'd like to speak with the team.

Your protection is your insurance, since you'd have no good argument that everything was arm length and not comingled, especially if you don't file your taxes separate.

What i'm struggling with is whether it's worth trying to do a non-recourse portfolio rental loan that combines all these into one loan. advantages are mainly that i get to wipe off the recourse nature off the record, can structure a 10-year IO period and ARM after that; however, the cost to complete is meaningful - 1% origination fee, $2-4k closing fees, new title policies cost of $15k or so, higher coupons of 4.3% +/-, prepay penalties and non-assumable, probably more difficult to selloff properties individually.