Once you go over that mark (5 - 10) your allowable LTV's decrease on new purchases, your reserve requirements go up and your risk is higher so your new interest rates will reflect that.The best interest rate is going to be on your primary.

Some things that strengthen your case even further would be if the property could be separated into multiple parcels and/or if your seller is willing to give you two contracts on the property to reflect further that you are buying two distinct properties.

Actually, people that behave like that are forcefully reminded that they reflect on us all, and if they continue, their affiliation can and does get rescinded.Mentorship within this group is excessively generous, and without expectation of reciprocation.  

The issue we ran into with this is we have put almost $80k into our house adding sq. footage, bedroom, bathroom, etc, and that was not reflected on the desk appraisal (even though I tried to explain this to the banker knowing inevitably what it would lead to). 

Again, I'm not an attorney, certainly not an attorney in your area, you're not a financial client either, but many HMLs need a simple attitude adjustment, the song to sing isn't "I don't have to play by those rules, they don't apply to me" to "what can I do to be more professional, have a safe and profitable business, what can I do to go above and beyond what is required that will reflect on a good business ethic and support my success. 

There is plenty of potential investments in the city, and the prices are reflecting it.

For example, If am bringing 75% of the cash needed for the project and my partner is bringing 25%, the percentage held in the trust reflects this.  

I also suggest amending your LLC's agreement to reflect this GP. 

Often these have minimal basis, but just reflect fear.  

I’ll run numbers here if I did the condo and rent out the home.Rental Income Room 1 $950.00Room 2 $850.00Room 3 $750.00Gross Rent 2,550.00Expenses Rent $1,500.00Electric and Gas: $200.00Water: $100.00Trash: $60.00Internet $80.00Insurance: $50* Gross Home Expense: $1,900.00 Gross Rent minus Expenses: $650.00Condo Expense: Rent $1,450.00Electric and Gas: $100.00Trash: $30.00Internet: $40.00Alarm: $25.00Tv: $35.00Insurance: $14.00 Total Condo Expense: $1,694.00Total Rent Minus Expenses: $1,044.00Note: The numbers do not reflect vacancy, repairs and reserves.