Most of my SFH's were in the Bear Creek, Cypress area. 

My version of 1. is buying a 2000-3000+ sf 4-7 bedroom house near where I work and renting out spare furnished rooms at $1000-1500/month, whatever your market will bear.

Purchase price: $197,500 Cash invested: $57,986 Purchased this 3 family in Hillsborough County in NH as the rents were half what market will bear and heat & hot water are included.

MY WHY: My big jump into REI are my kids, Bear (4) and Lola (2).

It allows you to diversify into a portfolio of homes as opposed to putting all of your proverbial eggs in one basket.Be cautious tho as over the years I have witnessed countless investors buying properties in crappy areas, for more than they are worth and being passed on to crappy property management that nickel and dimes them to death (I guess all of those 15% "awesome" paper cap rates and promises of financial freedom aren't that awesome after all...)This is not just true for real estate deals but life in general (Your "piece of paper" degree does't necessarily dictate success in your chosen profession or your business)Real life experience is different to what any "piece of paper" says.In all reality guys it takes time to build financial freedom, and the more you can diversify your risk across multiple properties in your portfolio the less risk you bear in the long run.I may not be the smartest Aussie you have ever met, however I do understand a few basic rules that I follow on every acquisition I make.Strength in numbers, cash only, patience, and discipline.Let's talk about Strength first.Price point plays a big part of "strength in numbers" as it is safer to acquire 5 homes for a total of $350,000 as opposed to one for $350,000.What happens if "that one" property goes untenanted for 5 months?

You're willing to take on a lot of this, but whatever their net proceeds from the sale will be, are being reduced each and every month that property tax bill goes unpaid. 

I don't know whether we're near another bear market or not.

@Leo Poon permitting and requirements are so area specific his answer would have no bearing on what you need to do (unless you invest in his area).

He definitely has his bearings in the market.

I have a few friends out here in Oregon who have large patches of land normally 2-5 acres I'm not sure if it's high or not, not my ball game but they are getting roughly 10% of profit but bear in mind that's water rights which in Oregon you must have for large scale grow.