Just as an example, I had a tenant applicant who wanted to park his semi-truck in my yard.

I can envision myself being semi-retired (when the time comes) and still managing/running a portfolio of properties. 

In AZ, the predominant building segment has been in the higher price range of semi-customs where builders could make more profit.

There are a lot of good options out there.For general info, and to semi piggyback on what Chris says-https://www.biggerpockets.com/renewsblog/2015/12/2...It's an old article, and the markets have changed since then, but the same idea still applies.I've primarily always bought turnkeys and am involved in a lot of markets.

I figured anybody that had liability insurance was at least semi-serious about running a viable business. 

What suggestions does this community have in regards on how to invest this money to start a life of semi passive income?

It really depends on the area but in CA to be a great deal you'd want to make 8-10% on it (this assumes semi-realistic numbers)

Most auction companies if the house is occuppied will tell you your not allowed to approach the homeowner.I violate this everytime.. set max bid and semi stick with it though.. but one trick is its human nature to stop at round numbers IE I will bid to 205k and thats it..

Though there may be exceptions, in most suburban or semi-urban cities, you will not find many single family homes in a 4-family zone. 4-family will likely be near small apartment buildings (5+ units).

There is easy access to ‘corner dealers’ and there is semi regular gun fire.