My generation would pin the sheet to the inside of the cabinet.

Take two-steps forward with buying a few rentals, and one step back by selling or flipping one to generate more cash and income for the next buy.

The goal is not to generate some kind of massive monthly cash-flow, you are looking to defray your living expenses while gaining valuable hands-on management experience and building equity in a property with a very low interest rate.Don't start evaluating this property based on the 2% rule, 1% rule, or whatever.

Buy an income generating MFH and get a loan based on the income itself.

I've shifted focus to networking (primarily on BP), a lead generating website, and learning about notes.

How much credibility should something that simple generate?

To me, rental properties aren't truly passive investments unless you use property management, but even then it creates worry where other interest-generating investments might not. 

I'm a new investor starting out fresh at 21, high credit score upper 700s, great job, and my next step in my life that Id like to achieve is generating a great amount of passive income.

I'm starting small now with properties under 80k that I can find in reasonable locations in Illinois for example, Dwight, IL, Ottawa, Morris, areas in Central IL where area is cheap so I can generate a nice stable income.

I agree with the other posters, that the equity in the townhome would generate more cash flow in rental(s) that provide more rental income relative to the property value.