Did you have unexpected expenses?

When you pay the invoice/expense in the AP queue (i.e. transfer funds from your operating account to the AP/CC account) it show as a payment for a specific expense/invoice?

This can be very expensive and is usually the worst choice because you can't justify the cost.2.

Some programs will do the full LTV that a long term rental would have and some lenders will reduce the LTV by 5%.

If you'd live in a tent under the bridge if you weren't house hacking, well then it might be more expensive for you, but most people would live in similarly expensive housing, only have nothing to show for it. 

You could build or flip less expensive units and sell them to your clients/occupants over time.

I am betting a lot of media is going to be coming out of how under insured people were because to be fully covered was "too expensive".

Quote from @Michael Challenger: I have no qualms with hard money lending, but I need to learn more about the process and structure to these for typical deals so that I am more comfortable and in a position to reduce my personal risk and risk to investors as much as possible.

Yes, you can deduct related expenses including gas, loan interest, insurance, etc. using the actual vehicle expenses method to deduct auto expenses for your rental or other businesses. 

That can be used to buy down the mortgage rate or reduce closing costs.