This is advertised as a “protected” note as Aloha is supposedly fronting the first $100k in the line of loss.

How you break that up is up to you.Seller concessions are limited by Investor - FHA allows 1% concessions, and only to FHA buyers, none to others.

Are there any questions you'd suggest asking to better understand this loan structure and its potential limitations?

When I attempted to do a similar flip in another county in Texas, where I was unfamiliar with the nuances of the area, my “slam dunk” deal ended up as a $40k loss!. 

So, you are not at limiting your self when buying a new property.

However, our current hard money lender only funds one loan at a time, limiting our ability to take on multiple deals simultaneously.

For the top tier area like Palo Alto where cap rate is 4.0%, LTV can only be limited to 40%~45%.

However, our current hard money lender only funds one loan at a time, limiting our ability to take on multiple deals simultaneously. 

Many rentals have losses on paper due to depreciation. 

The worst thing is to pay for a service where you don't get a benefit.If you have STR's and actively manage them, then there is a good chance that you can treat the propreties as active instead of passive which will allow you to offset the losses with other forms of income such as wages, interest, dividends, gains, etc.