The local folks are regular employees. 

Employees, investors, tenants, etc.And probably a lot more...

For us, what works is a RAV4 with 90,000 miles on it with a custom trailer hitch+wiring harness, a cargo carrier, and two different trailers.

I'm not trying to insult you but if you make 1/2 the average income of an American employee then I would say you lack the skills, life experience, or capital to take on investing. 

I'm sure you wouldn't buy stock in a company that had declining sales, is losing money and employees are leaving in droves but is in your backyard.

Rent increases are a tool, if people are stable and provide benefits (like keeping an eye on the property) then maybe they get a slightly better deal, if I want them out they get the full increases as I am happy if they stay and pay and happy if they leave.I agree with @Corby Goade, do not be the landlord, be a employee of your own management company so you can be the middle person and not get all the stories and push back.

He knew it was a lesson the employee would never forget and would make him much wiser in the future. 

@Carolyn Brown unfortunately the one I use is closed membership to only employees of a certain company.   

It would be enough for a down payment on a home but being a 1099 employee it is rather difficult to obtain traditional financing.

So another thing that prompted me to invest was to increase my Salary as an employee.