The way that it works is they are daily interest loans, generally have no payment requirements during the life of the loan, however the equity of the property gets ate up every day. the bank is probably not going to ask them to leave the property when equity position is upside down. short sale is usually an option via arms length transaction, or payments can generally be made for loan paydown and eventual refi once get loan to a more favorable LTV. feel free to PM if you have questions!

no absolutely not but at the same time I'm going to be cash flow positive based on conservative estimates and only have about ~10k into the deal.Here in NJ, the higher HOA fees are offset by the lower taxes on the condo. 

Obviously, you would give the first position to your family member “lien” on the property or some kind of collateral.

Anyone with a lot of cash and under pressure to do a  deal is in a vulnerable position, and having that knowledge cuts down the extent of how vulnerable you are.

Thank you, BP community for all of the positive feedback and suggestions!

You also show positive cash flow.  

You are not the one paying the interest...your tenant is...as long as you keep it as a positive Cash Flow. 

This may not seem like "income producing" activity at the moment, but it's critical for putting yourself in a position to generate revenue.2) Get to know the buyers in your area. 

I always had a good cushion, positive cash flow however small plus my wife and I were both professionals with good paying jobs.

Im in the position to buy now but are just letting the numbers determine.