i wouldn't tell you where you should move since i don't know you.also, a lender would be in the best position to advise whether you qualify for a specific loan. 

Right now, the best offers around me are for some 1.3-4 million, that only generated around 100k per year gross, so there would be a high chance of not cash flowing, and paying money, especially with a commercial loan (these buildings have more than 4 units).I was thinking that although the rental itself does not generate money, I would be able to deduct the mortgage interest, and depreciation from my personal w2 income and would be net positive.

I’d recommend starting with rental arbitrage to get your feet wet and generate some positive cash flow.While I haven’t personally done rental arbitrage, some of my employees have, and they found it to be profitable.However, as a long-term strategy, you’re essentially building your castle on someone else’s land.

How many tenants will you lose not because they didn't like the property but they didn't like your tenant selection.Remember my first point FLEXIBILITY, well if you decide to bail on the rent by the room, it is more unlikely that you can cashflow positive with a SFH than a duplex in Austin TX if you move out of the property.  

House hacking can certainly be a great way to build equity and reduce living expenses, but it’s essential to have a cushion in case your rental income doesn’t come in as expected or renovations take longer than planned.

Less overall headache+ instant equity.

One thing I will say, and do with it what you will, if you are digging out of a bad financial position I'd suggest RE is not for you now. 

does that mean they are getting the debt non recourse and you bring equity ?

@Juan Perez Seems like you are in an awesome position!

He was a realtor based in the Midwest (I think the greater Chicago area) and was talking about off vs. on market deals and the importance of choosing equity over cash flow.