My ultimate goal is to purchase and develop land in the ever receding outer exurbs in my region.Here is a little about my world of late: Home Automation and Security technology is developing at breakneck speeds these days and staying on the cutting edge is a full time job, especially when it comes to understanding the vulnerabilities associated with these new technologies (think "Hackers"...they really, really, really do wreak havoc..no joke).

Each will probably need to stand alone "at arm's length".

If it is a short sale the transaction would need to be arms length.

I was having an informal conversation with a lender yesterday and he mentioned that house-hacking can provide the benefit of more favorable lending terms, but I didn't get the full details...I'm seeking insight as to whether purchasing a MFR as a personal residence (house hacking) can allow a smaller down payment (20%) or more favorable interest rates than if purchasing a MFR and renting out all units.

You show the property's value through a variety of methods but two of the most common and successful approaches are 1) testimony from a licensed appraiser, or 2) showing that you purchased the property recently in an arms length transaction.

At this point, I could afford a conventional loan on a single property.From everything I hear (podcats, books), full-time investors are doing most of their deals off-market. 

Full disclosure.

You can then email the full report with pics and all to whoever you like.

If you only want 3 bed/2bath ranch houses will a full basement in a 1/2 mile radius from your house, we might have a challenge finding you deals.  

The Bigger Pockets book store if full of great books: https://www.biggerpockets.com/store