I am based in Seattle, but is licensed in Tx.You can acquire your a primary residence from up to 1-4 units for as low as 5% with conventional or 3.5% with FHA with a few exceptions.

note if we sell the primary residence, it is very likely we will not need mortgages to buy smaller rentals as we would use that mostly.Though I take your point on keeping it. our house was a new construction (3 years old) though so possibly low maintenance risk to keep for a rental. 

if they are a great PM 20% is totally fair. not too high and not too low

The negative equity often exceeds $50k but even if I use $25k (it would be rare to have this low of an initial negative equity position), is nearly 2.5 years to recover.  

You might want to check out the Detroit Land Bank Authority, which sells rundown properties at super low prices—as long as you commit to renovating them.

Very low turnover. 

The downside is you would inherit their very low basis.

for me, the ones that cashflow the most are the ones that I bought with 3% long term debt, they were new (low maintenance) and they are in high appreciating areas(just a bonus but does not impact cashflow).

If the other two parties want to flip a house maybe they can do just that as partners and then sell you the house which you can buy with a primary home loan with low down payment.

Even though there is low inventory, interest rates are high, and many properties don't cash flow, look harder there are always deals, you just need to find/make them.