The price is low at 900k.

She has been renting it for a super low friend rate from me.

Kansas City is a great place to look due to its low-cost housing but thriving market, just as @Mike D'Arrigo mentioned above.

But 8% seems like a fairly low rate of return for what you will be doing.

In the long run over however many units, they say it's easier and works out better than a low deposit.

Once that deal is complete, I'd like to make the jump over to real estate investing and really focusing in on creating passive (as much as possible) residual income.I have no personal debt other than my mortgage, and I plan to work while getting started with this investing.I'm very interested in mobile home parks, self storage, and any other similar types of investments.

I was thinking along the lines of vehicle or equipment storage?  

I think the key take away here is that the Cap Rate is way to low for the level of risk even though the tenant is locked into a LT lease. 

This option provides 1) a low entry point into an expensive market due to the VA loan 2) A SFR feel for you and your family ideally with a yard 3) Small multiplex are the best cash flow options currently in San Diego (SFR are real hard to find cash flow). 

The first purchase you can do with a low down payment of 3.5% through FHA.