But depending on the magnitude that home price range would have to go lower. 

It depends on what's in your contract.

To buy a lot outright its usually around $150k or so, depending on area of town.

@Roger Garner the strategy will really depend on what level of involvement you want in the project.

So for $400 they can buy 1% and depending on the rental rate of those homes, they receive the applicable % of the monthly cashflow as passive income.

Depends on what kind of property you are operating.

This market is not always available in the MLS, so making it more difficult.A commercial lending is possible even with SFH, that will depend on your lender and the access to commercial programs, it will all depend on the situation.  

It really depends on the markets you are looking in, if you have the bandwidth to handle general contractors and their subs, and the amount of capital/liquid you have.

depends on how many investors. 

Of course you could do both, depending what kind of capital you have.