Here in Michigan, it’s not as easy, so I’m exploring alternatives.

There are hardship withdrawal provisions and others that can be exercised if you meet the requirements. 3) If you have access to a workplace plan, like a 401k, with a Roth component, you can consider that as well. 4) If you setup your Roth with a Self-Directed IRA custodian, they can allow you to invest in assets like real estate, private lending, private equity and other alternative assets. 

Are you suggesting this as an alternative to taking a period of time to save up the capital?

I think it is easier to find a deal if you are house hacking since your deal doesn't need to be a home run; it just needs to be better then the alternative (paying rent).

is there an alternate use to put in there following the restaurant. 

As an alternative you could look for a walk-out, lock-off basement and add a small kitchen/kitchenette down there to have your own space away from your housemates.

Continuing with the example above the government then decided to provide an alternative to setting the building ablaze.  

I have used Hardie board under the LVP and had much better results, but it drives up the cost.It is cost-effective and there are not a lot of good alternatives at the price point. 

Alternatively, you could take a loan against your 401k for that initial amount.Once you’ve secured the property and paid the 5%, you can then work with a private money lender (PML) to close on the property once the deed is ready. 

Many alternative lenders have internal guidelines that prevent against lending on assets with any commercial components.