You do have to keep in mind that your interest rate will likely be a bit worse (low 5's?)

I always low ball offer properties. 

Try using different denominations of stamps instead of the forever stamp.Two 22 cent stamps and a 5 cent stamp.

Or, they have a very low or negative net worth and aren’t concerned with the risk of being sued.

If it's the latter, the online auction sites start the bids low as a teaser in order to get competition and more bids.  

Overall, assuming there is enough demand to meet these numbers and we can buy at these still very depressed prices, it seems like it would be a low floor and low maintenance investment, generate moderate returns for the next 5-10 years, and have very high potential ceiling in the event the area experiences a comeback which many special interests are already working towards.

I've also heard BP podcasts where people bought extremely low priced properties with all cash (under $50,000).

My goal would be to purchase a triplex/quadplex in the next 2 years using FHA and house hacking, but with such a low down payment, I can't find ANYTHING in the majority of LA county that could even remotely be positive cash flow.

@Elliot Saks - Milwaukee has great cashflowing properties as  there are a disproportional amount of renters (roughly 40% of households) and a solid inventory of low-priced housing. 

I now tie my identity to daily activities (learning and improvement) and the results are taking care of themselves.I am understanding and gaining control over my mind (your #1 above).I hit the gym first thing in the morning and eat a can of tuna and low sugar protein shake for breakfast...a workout and 45 grams of protein is a good way to kick off the day.