LLC's are easy to create and cheap to maintain.  

At first i was thinking two 3 family homes and just live in one collect the rent on the other 5 apts and just set aside enough for expenses(taxes,utilities,maintainence) but then i got to thinking i do want a family someday and id like to own a chunk of land.

In fact, it can definitely be the best choice when maintaining a yard or bearing the expense of interior maintenance is not practical.

There are many nice homes for sale that would earn a well as short term rentals but have a harder time maintaining a good return as a long term rental.Lastly, when looking at condos and townhomes pay close attention to the condo fees and the financial status of the condo association.There is a rental analysis sheet in the Bigger Pockets file download section http://www.biggerpockets.com/files that would a good start with analysing the numbers on target properties. 

That way, if there ever is a problem down the line, you at least have something to point to that would suggest the mold is the tenant's failure to maintain the property in an adequate manner, and you have done everything in your power to provide a safe home.

It was easy for me to maintain and gave me a taste of what real estate is like (rental wise).Since you are handy maybe buy a small house to flip, fix up or rent.  

Some will liquidate via REIT roll ups or bulk sales to other firms who intend to maintain them as rentals so they'll never hit the market.

Use your cash for the purchase and rehab, force appreciation, and finance out of the property to maintain your working capital.  

However I think its ok for those that have a little money put away and can maintain the payments.

If you are in no rush, than I agree an appriciation approach is a good option (Although some cash flow is important to help in maintaining the property).