It depends on where you want to live, income, personality, and other factors.You could buy a large home and rent out the individual rooms to cover expenses, but this comes with problems.

Some of the easiest deals my dad did were taking a large piece of land and subdividing it into smaller pieces and then selling them off individually.

I found Rich Dad Poor Dad by Robert Kiyosaki and Rental Property Investing by Brandon Turner to be very helpful.

putting a fund together to do this. there Is one in Texas called Texas triangle fund who raised 25 million dollars and focuses on national tract builders. individual funds versus pooled funds. higher end of the market is riskier the land entitlement guys I know wouldn't touch these unless it's entry level homes and national builder that is selling. good to have the contacts. in my two markets in Columbus Ohio and miami the only one where you can do this is Columbus Ohio because of affordable land prices.

@Bob Asad I like the individual sub account method escrow account, but there are multiple different ways to hold security deposits and multiple laws in different states.

It appears he had done poor underwriting.  

When we built up the triplex, we set it up so that each of the 11 rooms can be rented out individually (all BR, except 2, have their own bathroom behind an electronically locked door).

New landlord question- if I have an individual who wants to rent my place for their parent - who do I have fill out the application?  

I manage a few smaller complexes and they are all on individual price schemes though they are usually within a few dollars of each other. 

If a cash out refinance, many lenders will allow the cash out to satisfy the reserves requirement.DSCR lenders generally let you vest either individually or as an LLC.