I've had pretty good success the last couple years with a combination of house hacking and building Accessory Dwelling Units.

And when you combine that with buying off market going direct to seller, you can build a real estate empire while being vertically integrated.All of this aside, whatever market you decide to invest in, please be sure to develop a relationship with a reliable contractor and a project manager.All the best!!!

You can also think about a strategy that combines a house hack with a "live-in flip" where maybe the duplex isn't in a condition where you would want to live with your family when you purchase it, but you could do value-add renovations that improve your families day-to-day living but also the value and rental income for when you all move to the next property or sell. 

And real estate typically has much better tax treatment than the stock market.

As someone mentioned, the only thing passive about real estate investing is the tax treatment. 

Keep in mind most REI is a combination of monthly cashflow and appreciation.  

You combine the two. 

While qualified dividends get preferential tax treatment, real estate offers:Depreciation deductions1031 exchangesCost segregation opportunitiesHome office deductions for your management activitiesAnd more!

The solution could be a creative financing solution such as a total or partial private note, an assumption of the note or LLC, a speciality or local lender, or any combination thereof. 

In Ohio, some banks and credit unions are known for flexibility with mixed-use or investment properties include:Civista Bank - Known in Ohio for its flexibility with investment properties, they may have options for mixed-use financing.Liberty Home Mortgage - Offers a range of loan products, including commercial options that might suit your situation.Huntington National Bank - Has experience in commercial lending and may offer portfolio loans that allow combining the properties.Asking for a price adjustment for buying the single-family home in cash could be feasible, especially if the seller needs flexibility for the divorce settlement.