I'm trying to understand how house hacking is so profitable, putting down so little money, 3.5% or 5% would make for a hefty mortgage payment wouldn't it?

I don't think payment method has any bearing on giving a 1099 or not? 

I have read about stand alone policies that promise to pay if the tenant defaults on rental payments but I have not ever written that type of coverage.

I am trying to figure out how I can find a contractor or inspector that I can trust to view and walkthrough potential investment properties and would give me honest estimates, etc.

The key is to find someone you trust, which is why I recommend using Property Management Finder.

Financially speaking, I'm still saving, but the goal is 50k saved up (all costs: closing, fees, down payment, portion of rehabbing costs) by this summer with my fathers help on the cash all while I continuously save 50-80% of my work checks to fund for rehabbing this property and I work off my second job and "survive off of that."

Contact any 1031 intermediary and get the 411 - trust me it’s more accurate than much of what one sees on BP.

Agreeded with the first 2 posts, I've only experienced this once to have damages/ missed payments exceed security deposit. 

For example, we could be at 13% and 3 points on something like that assuming the GC also has some skin in the game on the down payment.

I ask because of course there is the ability to put more money down to get more advantageous rates and also lower payments because your are borrowing less, but this will affect your cash on cash ROR.