That 14% is after paying myself something for managing.In The Future for Investors, Siegel (Wharton) found that the ideal equity portfolio could provide a risk reduced return of 14% max over your lifetime.

A rod is more ideal for rentals!

"I'm waiting for the perfect opportunity": Real estate markets constantly fluctuate, but waiting for the ideal moment may lead to missed opportunities.

Although not ideal for investors, Im torn because with the money saved on the down payment and closing costs you could buy down interest, put a down payment on another home in a cheaper place etc.

Don't procrastinate; good offers can still be found; waiting for the ideal pricing sounds lovely.

I've thus been primarily looking in CS for potential SFH's in the $250-325 range (ideally a 3/2), so that I can live in 1 room or basement and rent out the other 2 rooms.

That would be ideal.

Hey @Colin Sexton, Ideally you would want to protect your asset in an LLC.

I deal in distressed properties and I see deals sell in as little as 30 min to an hour on a daily basis. 

Bottom line is the best places to raise a single family will likely appreciate better than areas that are not ideal for that.