He is their commercial lender. 5/1 ARM, 4.5% APR, 15 yr AM in my LLC.

Are they requiring more money down on an ARM?

I'm not sure what you mean by "under agreement for sale" but the transaction must be "arms length", no disqualified person can be involved nor benefit from the transaction in any way, directly or indirectly.

They put out the list every quarter and you might be able to find some deals because those owners are paying an arm and leg in taxes once the property is classified with those distinctions.

I was able to get a 5 year ARM with 15% down, no PMI and 5.25% when rates were near the peak.   

I found out later they were charging the tenants an arm and a leg to just get an application in, among other things.

If @Joshua Dorkin had taken on private capital back in the day to do marketing and increase business development and higher tons of developers and establish the publishing arm sooner, etc. etc. he could have grown more quickly. 

Currently, I have a 5-year ARM interest only loan and I am clearing over 6k monthly after the mortgage is paid.  

@Chad ReynosoMy recommendation is to get an attorney to deal with it so you are out of the mix and arms length away and going forward just have attorney deal with them

On paper it may look good but as Taylor said, you will have higher turn over, more problems with the tenants, etc.There are markets in Canada where you can still cash flow and buy a good house that doesn't cost an arm and a leg.