I'd build up and go for at least 2 units but 3 stories is better. 3 story walk up apartments account for almost 65% of apartment developments round he country. this is what I'd recommend on your lot. this is 35' tall and we do it in columbus oh 

I bought several multi-family this way and negotiated financing terms that were better than the bank.Cody Davis started investing at 19.

much better. we build a stacked triplex in Columbus Ohio and our costs drop significantly to $130k a door on a stick framed with profit in the urban core.

Quote from @Gregory Wilson:As for the second, there are only about 20 monetary numbers to be entered in Turbo Tax on a single unit rental property 1065 so it always seems to me that the $3500 would be better spent elsewhere.

You can also better explain the application process to them in person during their visits.    

I found it better to source a renter myself.

If the numbers still don’t work, you may want to explore nearby markets with better cash flow potential or wait for interest rates to improve.Good luck!

STR seems to have better tax benefits (in the right market) but is it worth it at a distance ???

Does anyone have any advice on a better strategy to earn interest with the cash flow being produced?

At least a lot better than the path I chose to take.