I do want to keep house #1 if possible.Currently my loan on house #1 is 5/1 ARM Interest Only; 3 out of 5 years completed; It has another 5-years of interest-only (rate resets every year of-course) left.

I now, am looking into getting into the game.Recently got my pre-approval for $300k conventional @3.8% and armed with it i decided to start hunting for deals and found a 2 family in Stamford for $246k.

I am doing a portfolio loan with them so they are able to do things outside the Freddie and Fannie rules as they will own and service the loan, I am doing a 7/1 ARM for 30 years, and a 20% down payment. 

At least now I'm armed with some more knowledge.

I cant stand people that break their arm patting themselves on the back all the time.

@Albert Bui any idea how that works with "arm's length transaction" being a factor?

We keep supplies onsite in a storage area and need someone we can explicitly trust to give access to these supplies.  

This would require a PMI payment until we get to 80% LTV.2) Either a 5/1 ARM @ 3.0% or 7/1 ARM @ 3.25% (both 90% LTV).

Arm yourself with some knowledge and be prepared to be overwhelmed at first.  

-Moving some money out of the country, but much more difficult now with asset reporting laws and the IRS strong arm tactics.