We manage residential properties all over Philadelphia and a few units in Delaware county as well. 

My town does not have rent control, and the house is on a residential street where most people own their SF homes, and the street is zone for single family homes.Can the municipalities not allow me to rent each floor separately?

There's not enough margin in houses and lots of things are beyond their control. 

Those three things you control.  

@Lily Nelson generally if you are priced right and listed on the major rental sites in a city of decent size you shouldn't have a problem, keeping tenants has a lot to do with the quality of the unit but some things are beyond your control, responsible tenants eventually buy homes in most places. 

Oregon Rent Control: https://www.npr.org/2019/02/27/698509957/oregon-set-to-pass-the-first-statewide-rent-control-billForbes (How Tiny Bozemen MT Became A Booming Tech Town): https://www.fastcompany.com/40419011/how-tiny-bozeman-montana-became-a-booming-tech-townNowadays, every small market that has a bit of tech influx is dubbed the "Silicon (Insert Local Geographical Identifier Here)".

With it we went to schlage encode locks so we do not have to have a controller and can program straight through wifi.

In terms of SFH, the appreciation and control you have on the home will be more but the typical buyer who purchases that kind of property is usually owner occupied meaning that their math on the home is not going to be numbers that 'make sense' to investors but rather an emotional purchase.

He holds all the cards and has no reason what so ever to cut you a better deal . he knows the area and controls it .

That's true passive income right there.One thing you lose though is CONTROL but the more control you want, the less passive the investment becomes.