Lenders are most picky about restaurants because they are really easy to kill.The lender doesn't require the restaurant to be owner-operated, but they'll need proof that your management staff has a robust resume in the field as well.I'm not sure what you mean by an "arm's length" transaction.I hope that helps.

Our idea is to continue living in our unit and have our next-door neighbor (attached unit) pay us rent, which would help cover our new mortgage.

It will always yield higher than a bank and is for the most part helpful to many investors allowing the leverage they need to succeed.

No problem, glad I could help!

Found this one on MLS, it had sat for a bit which helped with negotiating for a great price.

They should be able to help with "cover numbers" for budgeting purposes based on typical products used or ask them if they work with other investors - learn what the market is doing.

Hope that helps!

I found a $60k property requiring $80k rehab to get to $250k ARV My problem is that I cannot find financing for this project because it's in a rural area, Does anyone have any lenders who can help me out? 

With help from local agent team.

If it is vested under an LLC I believe you can get $1MM liability to help offset.