My recommendation would be different if you were a high-income earner or if you wanted steady equity growth.

Crime in Little Rock is significantly lower than most cities it's the way the city is zoned it looks high based on the old city limits and population.

The risk of property damage or a lawsuit from a dog bite is too high. 

I am left to wonder, though some investors with SFR's are doing it successfully, is the risk too high for the reward?

Splitting the gift across multiple years may reduce immediate tax reporting but requires appraisals, legal documentation and proper structuring.If the house is highly appreciated, holding it for inheritance may be more tax-efficient because the recipient would receive a stepped-up basis to the FMV at the time of your passing, eliminating much of the capital gains tax liability.This post does not create a CPA-Client relationship.

Those remote flips and high cash flow rentals are so tempting on paper, but they rarely go well in reality. 

Highly suggest coming out to some of the local chicago IN-PERSON meetups! 

Also, providing value to others at a high level will pay off for you in the end if you stick with it.

Despite the fact that the market has dropped significantly both in rent and price, I still think the market should be considered high risk/high reward.

BiggerPockets also has a calculator to analyze deals, and I highly recommend you start this as soon as possible, even if you are not ready to buy.