Unfortunately, I don't even have the 10% down I can make arrangements to swing $5k down at this point.

Yes I have considered but it doesn’t really work with my living arrangement.

(Trump does not use anonymous C corps - he has TRUMP in big letters on his buildings because my understanding is his attorneys use this very same technique)So the liens that strip the equity in your properties are not fake loans, they are created to truly capitalize a legal entity, hence the "economic reason" that holds up in court.Look it up on line and you will see there has not been one federal case challenging such an arrangement provided your liens were recorded "prior to" any lawsuit being initiated or filed against you.This structure saved an acquaintance of mine millions in a lawsuit on an apartment building in Chicago, where the litigants tenants wanted to slap him with punitive damages in the millions, but could not because there were no equity and if they would've won and gotten a charging order they (the plaintiffs) would've been stuck with a phantom income tax bill based on IRC 77-137Pursuant to Revenue Ruling 77-137, the IRS requires the judgment creditor in possession of a charging order to pay tax even though income was never distributed!

It was an interesting arrangement honestly.

What is the economic arrangement of the deal?

Is there any way I could pursue this deal and work out an arrangement with seller to get one of the units vacant (for example paying for tenants relocation costs)?

Additionally, this arrangement allows you to maintain access to the cabin for your own personal use.However, before moving forward with this idea, it's important to consider a few potential issues.

think about it: if you can put 3.5% down AND figure out a way to defray your house payment with some kind of house hack arrangement, you keep more cash in your pocket for other things: savings, other investments, whatever you want. 

You might choose to add a specific limit within your lease just to make it clear what the expectation is, but again its very hard to police something like this and of limited value as long as the rest of the tenancy arrangement is going ok. 

One way to avoid lending issues is to be a partner in a project providing money inside the business entity, endless arrangements can be made as a partner.