Eviction and foreclosure are two common real estate processes where you always want to use a lawyer from beginning to end.

In your experience do you see people commonly attempting to offset ordinary income / W2 with syndicated losses, despite the above?

There is very little technical knowledge needed, but there is a lot of common sense needed.I would google "rental property investing for beginners" and see what you uncover.  

Extremely solid advice.

"Is it a common practice to report it as a loss even though I fixed it out of my own pocket?" 

I don't know your market at all, but it's common for neighborhoods next to the hospital to not always feel safe to out of town nurses--- so just know proximity isn't always the main point.

You think through the major systems in the house (roof, exterior or tuck pointing, hvac, plumbing, electrical, unit turns, common areas) and if they are all new you should be good for a few years (5-10). 

With four plex you have to pay utilities for the hallway and common areas, also maintain and clean the common areas, because the tenants won''t.

Does anyone have any input on why this may not work, as it seems to not be a common thing for the banks to enforce.- I could be successful with foreclosure and end up owning the property- Since the note has reached maturity, it cannot be made to perform again by the borrower where I am stuck with it for years.

While there are definitely house hacks that have allowed owners to live for free and show positive cash flow the current interest rates and prices make those less common.