In my ideal scenario, I would do some more entry level projects to start off while I learn the ins and outs, but my goal would be to eventually work on more luxury flips - larger scaled projects in more desirable neighborhoods (though fewer and farther between).  

Flipping can be cost-effective due to lower entry costs and growth in neighborhoods.

Pick a desirable neighborhood where your home will appreciate and go for it!

Buy from a quality builder in a neighborhood which is going to appreciate.  

2.Downloaded a list of multi family owners from Listsource.com3.After receiving the list I searched for phone numbers and began looking up every property (assessors website and Zillow) and becoming familiar with the neighborhoods.

Today almost all houses in these neighborhoods are investor owned, with a high proportion of Section 8 tenants.

None of these are $200 per door in a C neighborhood.  

This is neighborhood dependent though and also capital expenditure free.

(And if so, how do you prevent everyone in the neighborhood from using it?)

Look at what similar homes are selling for that are rentals as well and what they're renting for in the neighborhood.