"Is it a common practice to report it as a loss even though I fixed it out of my own pocket?" 

There is very little technical knowledge needed, but there is a lot of common sense needed.I would google "rental property investing for beginners" and see what you uncover.  

I hope all of you are starting to realize how simple the concept truly is.Get a credible website, focus on conversion (value) not rankings, and you WILL dominate your market.Now the concept is easy, yes, the application takes a bit of smarts, but as long as you have common sense... it should every doable!

I tried a few different PMs when I was employed but was never happy with any of them; knew I couldn't do any worse...

I don't know your market at all, but it's common for neighborhoods next to the hospital to not always feel safe to out of town nurses--- so just know proximity isn't always the main point.

Very common. 

While there are definitely house hacks that have allowed owners to live for free and show positive cash flow the current interest rates and prices make those less common.

You think through the major systems in the house (roof, exterior or tuck pointing, hvac, plumbing, electrical, unit turns, common areas) and if they are all new you should be good for a few years (5-10). 

Does anyone have any input on why this may not work, as it seems to not be a common thing for the banks to enforce.- I could be successful with foreclosure and end up owning the property- Since the note has reached maturity, it cannot be made to perform again by the borrower where I am stuck with it for years.

Yes, this is quite a common practice for professional PM companies.