Rates range from same as Fannie Mae to as high as 3% higher than Fannie Mae on various ARMS and some fixed programs.The bank statement program uses 12-24 months bank statements at 50% of average deposits to determine your income.

So we objected to the Title commitment to try to cover my earnest money and give us a "safety net" for another 15 days.So now I am in this deal for a little over a grand between the inspections and appraisals.

LIBOR is being abandoned in a couple years, and no one knows what will happen to ARMs/HELOCs tied to LIBOR.

It might seem trivial but your safety and headspace will be greatly improved if you don't.  

I was thinking of proposing the loan terms as a 5/1 ARM with a balloon payment to the lenders when we have more equity in the property.

If you purchase a property in a typical arms length deal and you get a title search, it will tell you whether a second mortgage is on the property.

Safety is always a big issue when it comes to female tenants and children.

(if you can find such a policy) Insurance is a safety net, but it won't stop you from falling!

Let the entity be your development arm and the entity that holds it now be your investment arm. 

As a "younger" person, I am trying to build my portfolio, not my equity and safety.