I have a unique opportunity to secure a loan at the Applicable Federal Rate (1.04% for 1-3 years, 2.08% for 3-9 years, or 2.77% for 9+ years).

For questions 1 and 2, which are really the same question: Your tax benefits will be governed by the operating agreement for the syndication. 

"With a few exceptions, the first of which being "Dwelling units in owner-occupied buildings containing six units or less; provided, however, that the provisions of Section 5-12-160 shall apply to every rented dwelling unit in such buildings within the city of Chicago".If not in the Chicago RTLO, how are these properties governed?

I know Allentown and its government is trying extremely hard to revitalize that area.

On top of that we had skyrocketing building costs, interest rates being held artificially low by the Federal government, plus considerable stimulus money flowing the last 12 months.

Your question is too vague for any meaningful response.Which "tax office"... property tax, income tax, federal, state (which state), county?

So I was just poking around on the foreclosure section of the Bigger Pockets site and have seen a few properties that say $100 down - government owned.

Maybe I'm risk averse, but again this is probably a situation best addressed by the city or the post office since it likely depends on local and federal laws.3.

It's a great way benefit the government provides to avoid capital gains taxes. 

   Does the government, private organizations, or any other source provide grants for real estate investing?