I'd sell and only do arms-length, solo projects in the future.  

First look at that. 2nd, I never allow tenants to perform work at or on the properties for safety and legal reasons.Have it done by a professional who has a license and insured, plus you get a warranty on their work. 

It's still an arms length transaction, and "knowing the seller" has no effect on financing terms that I'm aware of.  

The downside, of course, is the less favorable loan terms (higher interest rates, shorter amortizations, ARMs rather than long-term fixed rates).

I think I've become more focused on buying properties with a margin of safety as I've gotten older.  

I have called a few banks and i have been considering 10/1 arm on a 30 years term.

Likewise, the plan may not receive a benefit from you such as the provision of services such as rehab work.All transactions must be executed at arm's length.  

The latter property has been quite successful and supports itself and hen some.2 weeks ago my mother-in-law fell off her bed in her senior community apartment and broke her arm.

Maybe I can strong arm her down another $10K and there’s the possibility of these being converted to 3br’s But 1.42% is what I have to work with today.

The "Inspection" that your lender is required to do, is more of an estimation and safety check, and it costs twice as much as a normal home inspector.