Option 2: Purchase additional properties and build portfolio I know that there are some tax implications to no having the mortgage payment to consider.

If your focus is to accommodate your mom and you can hold onto the property for a bit, I think you could definitely build equity and eventually generate cash flow from it.

I have been investing in Toledo, OH since 2009 and owned 2-12 unit buildings and find they are way too hyped (read lots of guys from BP want to pay too much for them) and the reality is residents in Toledo are ultimately seeking a house with a yard and a garage so as soon as a resident improves their financial situation they move into a house.

I am also nervous about it not cash flowing at all but I think buying in southern California and holding long term is an almost certain strategy to build wealth.

Contractors are working on it as we speak.

GREAT agents, lenders, contractors, wholesalers, etc. are worth their weight in gold.

You should build versus buy.  

I wouldn't spend too much time on low money down and how to find a deal, I would focus on building your own personal equity so you don't need to do that.

Are there specific networking events, online platforms, or strategies that have proven effective for building relationships with investors?

Build up that war chest.