Once I find the right deal I plan on doing it the old fashioned way; putting down 20% and getting a mortgage.I know that this community can offer a lot of support and wisdom when it comes to what I would like to do.

You describe it as a duplex or triplex, depending on how one interprets what you wrote.

Abatement of asbestos is not always extremely pricey, just depends what you are dealing with.

And it would also depends on types of properties being purchased where 20%  could be a couple of thousand and not ten thousand or more.Remember that the folks that are able to do those deals have also been at it for awhile and have built up their credibility among the investor community.

Just some good ole fashion deal hunting and learning how to make good offers and estimating rehab and after rehab value.

Cashing out is still a considerable tax hit, but depending on your RE goals, you may want to consider notes and/or partnerships. 

This is a question only you can answer and will depend on what you want to do, there is no right answer.

In fact, depending on the state you are in, it can increase your taxes. 

It all depends how involved you want to get in the project and what level of sound proofing you are trying to achieve.

Buying condo's is very tricky, since the financing options will depend on the warrantablity of the condo.