Build systems for them to come to you.

Purchase price: $33,000 Cash invested: $20,000 Sale price: $80,000 2 bedroom, 2 bath, light renovation with new roof and HVAC system.

the CC camps were paid gigs  this is how all our forest and parks got their trail systems built etc. 

The returns you're looking for require a high touch system hard to deliver as an out of state investor but not impossible. 

Blockchain has already been used successfully by startups like ubitquity (https://www.ubitquity.io/about/), which offers an immutable property record system that is backed by blockchain-based smart contracts on the Ethereum network.

@Christian Aziz  my vote is...Scenario 4: Sell our current place and buy a larger home.

@biggerpockets has to create some additional "reactions," as your comment deserves more than just a "vote"!

Next item to consider is the lateral system. 

I own a home in California (which I live in) and I want to start investing in real estate with the brrrr system, whats difficult for me to understand is if the bank will actually continue to lone you money when I keep buying properties, cause usually they want to see that your income can support the investment.

It's time to vote with your feet.