This would also allow me to keep my primary at a low rate loan. 

The property was my primary residence for a decade and now functions as rental unit so I am happy with the purchase overall and it has worked out well.

If so you may have some full doc options which have the best rates typically and terms.Like others have mentioned you have DSCR loans too but this only allows you to purchase non owner occupied properties (not primary residence or second home occupancy type properties).

If you are buying a primary then you will not necessarily be able to utilize the LLC for this property.

I of course want to start small.My dilemma is: I was approved through work to get a forgivable $12,500 down payment assistance on a "primary home" near where I work.

After a rough first year where I lost money for 8 months followed by another 4 months of learning how to self manage remotely, I had a great 13th-25th months where we have kept the placed booked, kept it profitable, and largely reinvested into the property.Here is the question though-  to buy the first property, my wife and I used a HELOC on our primary and used that for the downpayment on a new property,  for the furniture, appliances, etc, and all of the other little costs that go into getting going.  

I currently have a single family home as my primary and two investment properties.

I have to decide if im going to use a new injection of capital from the sale of my primary residence to:1) Hold in treasury bills at 4.5 percent until I find another property to purchase2) Pay off one of two existing mortgages, one at 3.75 percent and another at 4.5 percent3) Just find something to buy that beats either of those percentages on paper and be done with it4) Possibly loan out some hard money/broker it to a friend to allocateIts never an easy decision, but its a good problem to have.

When I'm investing in trust deeds - my primary concern is the safety of the principal.

MiThank you, I believe virtually all markets are over valued, but over the long term many (including my primary market) will have appreciation in excess of CPI.