I own a 30-unit community and found it much easier and more cost effective than the 1-4 family and flips that I was doing before that acquisition. 

The larger the purchase price the greater the spread you need between purchase price plus holding costs plus rehab cost and ARV.  40k projected profit on a 600k project is too skinny for me. 

That's why appraisers do the comparative approach and then secondarily the cost approach.So far, 100% of the time you don't get dollar for dollar back from what I've seen.

What happens if you buy the SFH and hate renting it by the room but the cost to maintain is too much by yourself.

The last deal I did like this, I bought a $145K home with about $10,000 out of pocket for repairs & closing costs

It has been a very bad and costly experience. 

-Transfer the property into an LLC – This may allow me to take ownership while potentially avoiding property tax reassessment, however this sounds like an involved process-Establish a living trust for my aunt and mother – The trust would specify that I inherit the property upon their passing and provide step up in cost basis but i'm worried that the living trust can be modified to have me removed (who knows what can happen) - My mother is somewhat volatile.I would like to live in the property and my mother will live in her second property with her husband. 

What marketing strategies are the most cost effective?

The bank will put a hold on them, so you can't just draw them out, so don't plan to need them for a while.This will cost you an appraisal on both properties to be performed by that lender. 

@Jonathan SniderFannie and Freddie do have LLPA's and the lower the down payment, the higher the cost.