Is 5% just a normal conventional loan?

Conventional, 5% down because of owner occupancy.

I am doing a conventional loan with 20% down. 

So put together a nice, very informative, written plan that describes the property, the deal, the financing needed, the returns, how you will manage it, your team, etc, and take this to them and ask to discuss their lending options.If, on the other hand, you are flexible on not using the LLC at first, then you can probably more easily get a conventional loan to purchase the property directly in your own name. 

If you currently have an FHA loan then you'll not be able to take advantage of the 3.5% down FHA loan in the same market, but there are several loan products that offer something like a 5% down loan (which is a conventional loan product).  

In a single-family house, you want the tenant to feel like it is their own home; plant flowers, take care of the place. 

This is not an issue for SFH + ADU, but if you add an ADU to a multiunit, conventional loans are off limits and you must consider non-conventional or commercial loans for refinance.  

Most conventional loans are going to want 20-25% down.

I also worked with Jonathan Lange with Infinity Mortgage on the refinance and he is very experienced working with residential investors on conventional loan options.

Thanks @Whitney Breedlove and @Edy Lagares.I was looking at a commercial loan with an interest rate of 6.5% with the LLC rather than a conventional 30 year with 4-5%.