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.

Traditional 15+1 ARM @ 3.865%.

A normal arms-length transaction where your employer happens to hold the note/service the loan of the seller, shouldn't be a problem.

@Daniel Gerardi AZ will welcome you with open arms...a great place to live and invest in real estate!  

I here your point of being mindful to not put ourselves in a situation where we are over-leveraged - but here is our thinking, let me know your thoughts.Where we felt this may be advantageous are deals that cash-flow enough where we are able to pay off both loans (business loan used as down payment & property loan), all expenses, and fund our emergency/safety buckets (Capex, vacancy, maintenance, ect.)We are both young and are finding it difficult to argue with acquiring a property without money out of pocket in this way if the rental income can support both loans without applying too much stress to our bottom line.From what we have seen, taking on BOTH a business loan for the down payment + a conventional mortgage or commercial loan would result in equal or lower (interest) payments then any hard money that we have come across. 

I guess the only cons I could sorta see is sometimes its nice to be at arm's length through a negotiation. 

Which is.Is this a safety concern and will the house be OK in its current situation? 

I'm thinking my best option is to cash out refi with an ARM which I'm HOPING will be a couple points lower enough to still cash flow on the original property and either refi out in a few years after showing more income, or blanket refi on the properties I (hope to) acquire.Sort of looking for thoughts and/or guidance on this one... any help is much appreciated.

There was an option of a 7/1 ARM at 4.2% also with 2.25% points.