This creates a negative initial position.

Hi Adam,The seller pays the seller commissions and (usually) covers the buyers commissions as well so you shouldn't worry about those fees.The 10% vs 20% I feel like is a personal opinion.

One of my early properties barely broke even, but after a couple of years, rent hikes and expense optimization turned it into a strong performer.For cash flow benchmarks, I usually aim for $200-$300 per unit, but your situation.. house hacking.. offers unique benefits like reduced living expenses and quicker equity buildup.

I have actually seen this before and courts usually stick to the rule unless you get dam lucky. 

Unit 2 - long-term rental (this will usually be with an existing tenant since you already have that running well or in a larger unit that might net the highest rent as a long-term)3.

Based on your current assumptions, you would be paying $1,229 per month out of pocket, leading to negative cash flow.If you’re house hacking and living in the property, it might still make sense because you're paying for housing anyway.

Where the loans go wrong is usually not with the loan terms. 

The interest rates are usually .5% higher than conventional loans and you might have a prepayment penalty, but that’s the only negative I can think of.

I am looking to connect with the investors there as the promotors are continuing to take Asset Management fees to the tune of $450K a year (on top of PM fees) even when their payout to the investors is around $20K a quarter (not meeting preferred) and the overall fund is negative about $450K.

Well even if the rent is equal to the mortgage, you'll still be in the negative after repairs, CapEx, vacancy, etc.Why would you specifically be thinking of investing at a negative cash flow?