I generally rule out most single family homes as viable rentals, as prices are pretty high relative to rents, so aside from some downtown neighborhoods, typically you do not find large areas of single family rental neighborhoods (a median sale price on a 3 bed, 2 bath home so far this year in Dane County on MLS sales data is at $430k). 

Purchase price: $975,000 Cash invested: $195,000 3 bed 2 bath with 1 bed 1 bath adu on 1.5 acres

The demographics and map data don't take the students into account, but they're really what's driving the market.Low property values and ever-increasing student rents are a recipe for a market when you can pick up a duplex in decent condition for $150k, and rent it for $500/bed (that's an EGI of $36,000 annually for a 3/3 duplex).

For example, instead of 1 rent $2000 for a 3 bed 2 bath.

They are either landlocked or the road leading to it and often than land itself sits inside a dry creek bed known as an arroyo that floods whenever it rains upstream.

If you can reasonably throw up a new wall and closet, turning a 3 bed into a 4 bed, that is a great place to start, but only if it works for the property and you have at least 2 full bathrooms.  

Small college town, 10k-30k people, anywhere from 80k-160k will get you a nice 3 bed 1 bath house.

Couch, lounge chairs, bed, rug.

Originally posted by @Michele Davidson:@Alex YeaterWe are selling our bed and breakfast business complete and turn key with wedding items.

@Marco Teixeira I'm looking into it as well, the main two issues I'm trying to solve are that not only you have to find the property but be conscious about to which city hall that area belongs, that makes a huge difference in time frames if you want to license it as senior living, the other thing is scale, it's more management intensive (staff 24/7, doctor visits, nurses, food, etc...) therefore if you don't have enough beds it might not make sense, you'll end up having to charge too much per person for you just to break even, that being said there is definitely a HUGE demand for it.