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. 

While speaking with a lender, she brought up that I should invest in my homestead before buying my first rental property so I can take advantage of interest rates while they are low.

Without a job your chances of success is likely very low.

It could be it's one of a small percentage of co-ops that does allow investors and there are too many units rented, or the sponsor still owns too many units, or it could be the reserves are too low, or not enough insurance, or a lawsuit, etc.

There are "deals" to be found in that area, but the schools are poor, and your rental rates will be low. 

Is the 1% or 2% rule mostly only attainable if you buy at a low price, foreclosure, or cash, and put work into it?  

Take for example the following:Rental Property that is for sale near where I live:$80,000 property that doesn't need any repairs (essentially turn-key that I will self-manage) - $900 rent $16,000 down with $2,000 closing costs - Total All-In: $18,000Assuming 5% vacancy, $1,000 in taxes, $800 for insurance, 5% for maintenance, and a buffer of $200 a month, I would cash flow roughly $3,300 a year.https://www.calculator.net/rental-property-calcula...I've been around this forum to know that people will say things like 'well your vacancy/taxes/capex is way too low.'

You will have high expenses on something that old and that low of rent. 1-2 miles makes a big difference most of the time.