OP sees two differing thoughts, can make their own judgement.

Fannie will do co-op loans, just like condo, but very few lenders offer the co-op loans as they are hard to review, underwrite and always need an independent attorney to review that the lean if filled properly.

Co-op apartments are probably a very NYC specific property type.

Some lenders that offer 90% LTV don't service Co-ops. 

Ethical concerns aside, OP now has written record by way of this thread that they were aware of the issue prior to closing so...My advice would be to seek legal counsel asap. 

This is a commonly known exception you could easily have found with a quick search, but here's straight from the text of the Fair Housing Act:b) ExemptionsNothing in section 3604 of this title [which is the section dealing with all forms of discrimination) (other than subsection (c)[which is the section dealing with advertising]) shall apply to—(1) any single-family house sold or rented by an owner: Provided, That such private individual owner does not own more than three such single-family houses at any one time:As I noted, state laws are sometimes more restrictive, so the OP needs to check the laws of his state, but if they're doing their first rental and did not use a broker, they are, indeed, exempt from the Fair Housing Act.

The stats will say that co-op with buyers brokers is a huge part of selling out a development.  

Perhaps the OP needs to explain her situation/needs to her insurance agent better or needs a new insurance agent. 

You could contribute for a small slice of equity to help oversee the property, manage ops, landscape, whatever skillset and time you could offer. 

there is no way I leave $30k to $35k with a negative ~$350/month cash flow (cash flow derived from cash flow number OP provided).