Even if I take the 15% tax hit I would make $32,000/ year on the remaining $400,000.    

From there, I would start to run numbers on those deals in that area/streets, and then start to connect with local agents/PMs to get an even better feel for pricing on homes along with rents for them. 

If a single-family owner-occupied property is worth $400,000 - I wouldn't invest more than $280,000 (70%) in a note secured by the property.ITV takes priority over desired yield - so even if the note discounts to $350,000 based on desired yield, the investor still won't go beyond their maximum ITV. 

When choosing tenants (I am in California), it's important to avoid even the appearance of discrimination, especially during in-person meetings.

That’s something I’m actively exploring—whether it’s through direct-to-seller marketing, networking with local wholesalers, or even tapping into connections through my brother-in-law, who works with builders and contractors in the area.I’m not expecting slam-dunk deals or easy wins, but the numbers on a few potential projects I’ve run so far seem to work under the assumption that I’ll leave some cash in the deals.

And even this requires some funds - closing costs on the buy, monthly payments to the seller, and other holding costs, insurance, appraisal on the refi, etc.

OR even less risky is investing in bonds/CDs, etc.

Or maybe even an apartment complex 20-50 units 

@Greg P.have you tried networking, going to meetups, or even starting your own mastermind or meetup for this?

You want an investment that pays for itself, including mortgage, taxes, insurance, maintenance, and even some money set aside for a reserve to cover vacancies and capital expenditures.