Rents on slightly improved houses are easily clearing $1,000.  

Set the filter to the most recent 6 months of sales and get familiar what houses sell for.

@Eduardo Suarez  Gather local info on the house and filter it to the buyer.I would quickly consume and drown yourself in every piece of real estate related information.  

Because later, you can easily use it as your mailing list!

I assume your family member and you are on good terms so this should go-over pretty easily.

You may also consider a SFH that has a wet bar (easily add kitchenette) and ability to create a second entrance - that way, if you don't want to interact with your tenants you don't have to :) 

Its one property, you can easily do this on your on.

Most of them are easily changeable for not much cost.

I could easily make this property worth a lot more then the purchase price within a year by raising the rents and improving the property.

You can get a home for $40K and rent it for $800 fairly easily but what if you buy a home for $55K?