I KNOW I am not up to Accredited.It seems to me to be "backwards" thinking that there is LESS risk to a 'novice' in a FUND since the risk is spread out over many Notes and professionally managed, whereas an Individual Note seems like it would carry WAY more risk, especially picking the 'right one' for your investing goals, budget, etc...? 

@John Zhang If your wife qualifies for Real Estate Professional Status (REPS) and materially participates in managing rental properties, there is no limit on the amount of rental losses, including depreciation, that can offset your W-2 income.

You can contact some local property managers and get a better idea of the rental market.

3) Buy a few out of state properties directly through an agent and work with a property manager to manage them? 

It would cost me only $2300 per month which includes rent utilities furnishing and property management. she showed me one example only of a customer who profited greatly.

Most likely those would be smaller apartments, sub 50 units.It is harder to find solid property management on the smaller apartments.  

A great way to get started if you currently have a W2 job is to buy a house hack like a duplex or a fourplex where you can move into one of the units and continue to rent/manage the other units.

Umbrella insurance provides substantial liability protection at a lower cost and avoids the administrative complexities of managing an LLC.

In the past two years we have completed over a dozen flips, We are holding 20 rental units self managed and 2 self managed Air BnBs.

You can also partner with experienced investors who have the funds but need someone to find and manage properties.