This creates a negative initial position.

Here’s what you need to know about using your cost segregation study:If your CPA says your tax return is already going negative, it means you’re reporting a loss for the year.

House hacking a duplex, even with negative cash flow upfront, is a great way to build equity while learning hands-on.

The possible negatives of subject to have been thoroughly discussed.  

Using 50% rule (expenses excluding P&i is 50% of rent) here are the numbers;1800 (rent) - $900 (expenses) - 1468 (heloc) = negative $568/monthAt your rent point with that size unit, your expenses will ve less than depicted by the 50% rule, so let’s use a likely more accurate 40%1800 - 720 (expenses) - 1468 = negative $388/monthNow let’s imagine you self manage and you time is not worth anything (I strongly recommend believing your time is worth less or worth less than a quality PM would charge) with 8% further reduction so expenses are down to 32%1800 - 576 (expenses) - 1468 = negative $244/month. 

Any feedback positive or negative would be appreciated!

In long run could have some negative consequencesalso Is it just residential or commercial as well?    

At $1200 in rent, you will probably have negative cash flow. 

If you're willing and able, I do recommend the "house hacking" strategy which is just a fancy name for buying a rental property and living in one of the units, because you'll get very favorable financing - an owner-occupied fixed-rate 30-year mortgage.I'd also say, analyze that property as if you won't live there and it's a pure rental, and make sure the property is still cash flow positive if there's a tenant in your unit because then you'll know if it's actually a good investment.And when you analyze it, include payment of a property manager in your #s because if you don't, and doing so would make it go cash flow negative, then you've just bought yourself a job because you literally can't step away from managing it without losing money.

I use a point system for screening; applicants get positive points for positive aspects, lose points for negative aspects, and I have a point threshold for each property.