Foreigners are still a relatively small player in most cities in the US (except NYC and some areas in SF and LA) so the domestic buyer remains critical to prevent a potential correction in the US real estate market.

Also, the CD shows that I’m paying for every single closing cost, even tax stamps.

A fourplex for $55k & rents for $400/mo sounds like maybe c/d areas..? 

If you go that route you can find people in the area you're wanting to invest and see how they handle themselves in the forums (are they knowledgeable, team player).

Also, see the discussion linked below about passive fund structures. https://www.biggerpockets.com/forums/70/topics/371926-notes-funds-for-individual-investors-what-are-the-best-players?

C/D class property landlords will have more difficulty finding qualified applicantsSecond line of defence is determining what type of tenant is the lowest risk based often on those protect by housing and human rights standards.

I've experienced what you are going through in the Austin market, where everyone is a player with money making offers up to $10,000 to $15,000 over asking price. 

You have to be a big player to get an unsecured line of credit for any amount of money.

She has been corporate her whole life so has a 401k, 403b, IRA's and a few cd's out there.

This has been a very passively managed industry for 30, 40 years up until institutional players came in.”When rents are significantly higher than the cost of ownership, renters tend to become house hunters.