I previously had a ARM and I think lenders had to make sure I qualified if the interest rose, not just at the starter rate and I wasn’t sure if they did something similar for HELOCS.Thanks in advance.

Option A: Refinance to a 7yr ARM at 3.25% and use the equity to purchase another profitable multi-family.

A local small bank has offered a 20 year ARM loan.

Understand Dodd Frank when applying credits and lease options; Lease purchase agreements can be a way for sellers to find a buyer, acquiring both a buyer commitment for the future as well as rental income now, to defray monthly obligations; A seller's offer of lease purchase can also attract a buyer who wants the property but needs a little additional time to complete loan qualification and does not want to or cannot make an immediate down payment; terms of payment in a lease purchase should conform to local rental data for comparable homes; the amount paid monthly to be set aside for down payment of closing costs should be in excess of the going rental rate; if not, the lender arranging the mortgage at lease end may not accept the set aside funds; instead, the lender will disqualify the funds by declaring them a "gift" from the seller to the buyer; lease purchase documents should be drawn up with legal counsel to address eventualities such as the buyer not qualifying to purchase at lease end or a market value decline impacting the agreed purchase price and lender's terms. 8.Selling to Relatives - Selling to relatives can be a good option if the seller is having trouble moving the property or if they desire to keep the property in the family; if the property is owned outright, there are few challenges, but if a conventional loan is needed to complete the deal, it can get tricky; creating conditions where a lender is convinced that this is an "arm's length transaction" may be challenging.

My goal is to create a great home experience for the renter, but doesn’t cause me an arm an leg in material cost ( as most of us probably want).So far flooring will be vinyl.Kitchen countertops will be granite .Soft close cabinetry in kitchen.Any suggestions will low coating materials for the bathroom , appliances ( kitchen) and bedroom which will give great value but will be relatively cheap for me as an investor when purchasing?

No - Almost 100% of the time this would be an arms length violation.

One of my lenders is "open for business" but no higher than 65% LTV on a 5/1 ARM, 20 yr am. 

Since they can't disarm you (as someone armed), they try to get armed.

So if there is an arms length transaction affidavit that states there are to be NO TRANSFERS within 30 days or etc, then you do a transfer of members of the LLC it could make it uninsurable. 

You may be able to get it done @ 60% - 70% LTV right now, but it will most likely be an ARM and the rate depends on the source of capital.