I've also read this in some places, but I'm having trouble locating the explicit law.

If this is a non owner occupied property, you could do a 5 year ARM with a 30 year amortization. 

@Cherri Huang Find a local small (very small) bank or credit union that likes the deal. might wind up with a 5% arm, try to do 4 loans so you can refi them later one at a time.

(Your rate should be around 4% for a 5/20 ARM if you are qualified and properties cash flow nicely).Alternatively, if your rates are better than that or you don't want to lose a 30 yr fixed note, I'd just get a commercial mortgage on the new home you are purchasing.

I would either let the commercial lender use the equity in my properties as collateral for the $120,000 down payment at 4.75% ARM for 25 years, or I could do a cash out refinance at 4.32% 30 year fixed for each property.

Bought a property listed as a RM-1 (Multi-family).

Terms were a 5/1 ARM loan with a 20 year amortization at a 5.25% interest rate.

But Brian is correct that the transaction requires an arms length relationship, so you would be in violation if you (as the trustee) used it to invest in your own deal.

I've seen rates start at 4.75 with some lenders but you start adding for carveouts (Location, LTV, 5 ARM vs 30 years, Prepay options, loan amount, etc)

ARM amortized over 15-30yr).