If so, you should also look into the insurance requirements during construction (both builder risk as well as the GC's policy, but particularly the GC policy).

I hear this even in popular podcasts like Thanks for Visiting where they recently have been interviewing very seasoned, successful MTR hosts and keep asking 'but what about the risk of squatters??'

The idea that sometimes the best investment is the one you choose not to make reflects a solid understanding of risk management.In real estate, there's often a lot of emotion tied to a property.

Going OOS involves a LOT more trust & risk with whatever team you put together. 

This approach would allow me to learn with each deal and minimize initial risks.2️⃣ Go Straight to Multifamily: Instead of starting with SFHs, I could spend time learning the multifamily business and go directly for a 20+ unit building, maximizing scalability from the start.I have no experience with either strategy.If you were in my position, which strategy would you choose and why?

For example, if she can't visit the property, is she good at record keeping (so everything is organized at tax time) or finding vendors, comparing product prices, finding free or low cost items on Facebook marketplace to improve the rental)3. emergency fund.

Quote from @Scott Bloom: You can get a commercial grade policy from major carriers where they lump the risk across multiple properties into one policy, reducing your premiums.  

Quote from @Stuart Udis: @James Wise "Do normal due diligence like appraisal and inspection and you're risk exposure is fairly low.

The risk/reward here sounds pretty far skewed.

.: One of the interesting things that occurred in the legal landscape was that in 1978, California's Supreme Court ruled that due on sale clauses in mortgage documents were void "restraints on alienation" and unenforceable unless a lender could show their security was at risk.