Best bet: connect with local investors/lenders/brokers to narrow your focus (what type of asset, what sub-market of the metroplex).

The area is growing and I anticipate rents going up as well as house prices, i don't want to bet on this but it does give me some comfort that equity will increase over the next few years.  

I would bet that the owner works more than 20 hours a week.  

Her half would go to her heirs and yours would go to you.Possibly put it in a trust and you could be joint administrators of the trust....best bet is to probably consult a real estate attorney in your area.

As a small scale investor, I would argue the safest bet for the Mom & Pop investors like us is the standard single family rental property.

That’s often easier said then done but that’s gonna be your best bet.

However I fail to see how this is true at the scale at which I would be capable of buying...in my price range the properties would not be large enough to merit their own on-site Management, unless maybe I just bought one and bet my entire future on it.

Your best bets are either lending to the "big dogs" in your area or investing in a professionally managed fund like @Dmitriy Fomichenko suggested.

I am still learning about REI (a little late to this party, I should've been learning about it much sooner) but it seems like OOS would be our best bet for monthly cash flow. 

I bet you’ll get it fixed ASAP!