All transactions involving your IRA must be 'arms length'. 

They will force you to get a commercial/business loan. 

Now they are up in arms about affordable housing.  

I would say it's a 50/50 shot on this second one but if I miss my number it will only be by a small amount and I'll be stuck with maybe 5k invested in the house.You can think of the forced equity on these properties as funny money up until the day I sell them, but having that equity is the only way to make properties cash flow where I live/invest.

So I can't rely on a raising rate to force the mortgage down.

Forced appreciation equity bump scores a win in the short term and thus opens up multiple exit strategies, boosts returns, and lowers risk. 

There is a ton of info here on BP regarding BP, but the basics are to be be all in with the buy and rehab at ~75% ARV, put a renter in, wait your 6 months if refinancing traditionally (there are other options that cost more) and refinance all your purchase and rehab money out.I can't imagine the BRRRR working without the first R, which is Rehab, to force some value into the property.  

We are planning to finance an investment property using a 7 yr ARM.  

@Jason Rector Sounds like a good deal for C class properties, maybe not so much for high end rentals.

Would this force me to have to get a hard money loan for the repairs?