The issuer can take up to 35 non-accredited (sophisticated) investors into the offering if they CHOOSE to do so.  

In reality, the investor could actually live in the property, but instead they choose to excerise their permissable ability to sublease the property and profit from the spread during the lease term.  

Choosing the right person to leave in charge is one of the biggest problems.

I plan to do this for a few years as I build up the amount of capital to the point where I can include real estate if I choose.There are many options you can choose from for private lending.  

If you choose to partner with anyone, make sure you check references from other investors they've worked with and verify returns.

Even more important than the market you choose is the team you work with or put together.  

@Trever Ford,It makes no difference to me in NY if she chooses an agent in Ohio (I am not licensed there).

@Ray ThorsenCheck the laws in your area to make sure there isn't a requirement on how you choose tenants.

you may want to invest out of the area you choose to live, invest when the numbers make sense. 

My wife and I are closing on a triplex that was owner occupied, during the contact write-up the owner wanted to stay there for 30days after closing (for free) if he chooses to stay after the 30days he will rent for $550.