Buy a 3/2 (if possible), live in the master, rent out the other 2 rooms to friends.

I actually recently met a real estate agent who I've become friends with and will be helping him with some of his properties to get some first hand experience. 

Be sure to factor in management complexity, market research, and your risk tolerance as you evaluate options.Without a W-2, HELOC approval can be tricky, but some lenders will work with retired individuals, mainly if you can document stable income (rental income, retirement funds, etc.).

Real estate's "gross rent multiplier" is Wall Street's "sales to revenue",  "cap rate" is roughly "P/E ratio".When evaluating markets and investments I tend to start with GRM (or lazily the 1% rule), then attempt to return a cap rate based on assumptions about costs, then I work my way to multiple years of projections (assumptions about inflation, amortization, tax benefits, etc), and if I am partnering with one of my smart friends I have to pull up an IRR (internal rate of return).I also look at regional employment levels, median income to rent ratio in the zip code etc. 

Years ago, a friend of mine took on a similar challenge in an older neighborhood near Chicago..he opened up the top floor to create a master suite that felt less like a converted attic and more like a boutique hotel room.

I have some good friends here that may be able to help as well. 

One of my best friends paid cash for a "handyman's special" trailer in 2021 for $9k.

Giving away the place cheap only creates more work for yourself screening lower income individuals, and attracts scammers.

Also very friendly and helpful.  

Scranton area seems to be a lot more landlord friendly than New York is, and the numbers seem better as well, Section 8 seems appealing for the guaranteed income but I will definitely take that information under consideration as I’m looking to invest in the area.