LLCs should be used for asset protection but if you live in it then you would defeat the liability protections. 

The Landlord insurance policy quotes I am receiving has a high deductible for Wind/Hail/Named Storm coverage which effectively means replacing the roof would be out of pocket for me which defeats the purpose of carrying this insurance.

That potentially goes to piercing your corporate veil which defeats the purpose. 

I've been trolling the site for the last few months without posting anything but finally decided I should participate since I'm feeling a little defeated. 

The best advice I could give is don't confuse temporary defeat with failure.

Tenants are your customer not an enemy to be defeated simply because you are in the right by way of a contractual agreement.

Regardless, small residential homes (legal 2 families) are some what of a job, yes you could delegate some of the work but that is defeating the purpose, the ROI gets too low IMO.

But what would happen is often I would get a counter for more, so I started reducing my offers and then the seller would counter at full price and I would counter the counter by splitting the difference and most of the time they would accept, others demanded the asking price and I would cave in defeated.

Flunking the National portion of the Real Estate Exam has me feeling defeated and like it wasn't in Gods plan for me to be in Property Management.

I’m starting to feel defeated with all of this, but I’m trying to find a way.