My gut tells me you will have to go with a hard money alternative.  

My second choice neighborhood is Elmhurst, and would be perfectly content in this neighborhood, though I've heard recently zoning laws have changed for the R-2 zone to restrict 3+ unrelated people from living in one unit.Any insight on financing in RI, different neighborhoods, just a hello from fellow Rhode Islanders, and any advice with the market the way it is as it relates to buy and hold house hacking in a B+ to A market.

It's your choice. 

Barrack's expertise, what I found missing was a mechanism that would cause the banks to make a choice that was against their long term best interest, that is not to restructure what other wise are quality loan(s). 

It's that experience that carves my choices on giving (and our belief system). 

Q What are my choices for types of loans when I go and talk to the lending institution?

But try to align your choice with your goals.2.

Ask your agent....but look for other alternatives. 

He also says that because he is not laid off, he can not apply for unemployment benefits.So I guess, he is playing victim here and I feel like I have no choice but to accept his story.

A lot of CPAs are "jack of all trades" generalists.While the topic of this thread isn't complex, a CPA not experienced with partnership tax law may struggle.Deducting on the 1065, as your CPA suggested, is not correct (nor it is a choice).Either (a) establish an accountable plan and have the partnership timely reimburse you (and take the deduction on the 1065) OR (b) get an appropriate expense reimbursement amendment in the operating agreement (signed by all applicable members) and begin taking mileage as UPE on your 1040.