I need to better understand my financing options before getting too far into the process.Details:Purchase Price: likely $70,000 - $75,000 (currently in online auction)Reno Costs: ~$35,000ARV: $135,000Right now I can put 20% of the purchase price down with no issues while still maintaining 6 months of PITI reserves. 

Investing primarily in this market has clearly put you in a strong equity position. 

The owners of the other adjacent home have been on an extended vacation (and have left their air conditioning set to 85 Fahrenheit).A few weeks ago, my tenants called me saying that their AC can't maintain setpoint--I assured them that this is normal as both demising walls are currently exposed to elevated temperatures.

Based on current prices, SFR will maybe get you $100-200 positive (best case) and worst case break even.

You have to document your intent to defend your position. 

Would you ever consider purchasing a house hack that has a small amount of negative cash flow (when considering all expenses to budget for, of course), knowing that cash flow would be positive once you moved out and gained income from the unit that you were occupying?

While the home will still technically produce negative cashflow, it would give me a very cheap monthly payment on a house that is steadily gaining value.Now, over the next year, my goal is to purchase another SHF in the area as my first official "rental" property, with the intent of positive cashflow and passive monthly income.

I don't do the due diligence unless I get a positive response from the property owner.  

Is a property with that much needed repair work maybe too large to tackle for a beginner in my position?

It would need to be in the range of $3000 - $3500 to produce positive cash flow as well as cover your equity value.