Try to avoid renting out a single family to an actual family because you will limit how much juice you can squeeze from that property. 

So does the book provide a loophole to the three property limitation to the “mortgage origination” rule (Dodd Frank)?

This limited inventory will likely continue to drive prices upward.Sales - Median $/SF by MonthThe $/SF increased slightly MoM, bucking the seasonal trend.

Hoping there is an opportunity despite my limited capital

So if you are selling a property in a given year, it might be worthwhile to talk with your CPA and see if selling some stock at a loss would be helpful (since otherwise capital losses are limited to $3,000 as Joshua mentioned). 

As stated above, this limits your conventional loan options, and means your rate will be higher with either a Conventional Loan or DSCR loan once you do the refi! 

Passive investing takes time up front to educate yourself, find operators and deals - but after you invest, you have limited obligations.  

All that combined with limited building and no state income tax there is positive rent and appreciation. 

You want to appeal to the most people and many buyers will want to live in the home, so having tenants will limit who it appeals to.

I get applicants with limited to no rent history many times because they are young and just don't have the history.