SFR and small multi-family no longer viable?

[Mike Lattier]

I just read the article by Stephen Sorensen on the BP blog about vacation rentals.  He made the following surprising statement:

“So, today as real estate markets all over the country are approaching market highs, prices have risen to the point that both single family residential and small multifamily residential properties are no longer viable investments for just anyone. Instead they’re limited to those with the deepest pockets. As such, the vacation rental space is quickly becoming a popular place for investors to look for the returns they need.”

So I guess all of us looking to begin investing with SFR or small multi family just need to give that idea up, unless we have the "deepest pockets"?? Thoughts from the more seasoned pros here?