If you don't have the "dough" you don't have the "go".Based on what you are saying you will need 20% down payment for a rental + closing costs + operating reserves (in cash).Most people will not have this--some will do what they need to do to get it--some will not, some can not.A good first step might be to save up as much as you can for a year in a special savings account--by living frugally for 12 months.Then explore down payment assistance programs in your area for first time home buyers of a primary residence--if you qualify (and the home is in a good area for your 'Family" vs Gunshot Alley, then buy a home for yourself and your family.Getting on the track of being a homeowner will give you some additional strength, after a few years of ownership, re-asses your situation.Or work 2 jobs and save the 20% down, closing costs and operating capital you will need, but if you do that and your wife divorces you for it, then you will be in a worse situation than you are now.In the mean time, [1] read Rich Dad Poor Dad, and [2] have fun with your family doing things together (while you have the time), rent a boat for an afternoon, go on a pic-nick, hike in the woods, etc...

Live in them for 2 years or long enough to save up another 5% down payment and repeat. 

We all have a human side but at the same time, if they can't afford my terms and they have proved that they have already missed payments to other landlords, it's a super easy decision.

As he noted, if you call some of the mainstream custodians they will say they allow for self-direction but they mean that in the literal sense of doing what you want with the securities and investment options on their platforms, which are traditional investments like stocks, bonds, ETFs, etc.  

Consider all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.5.

@Jacob Hancock-no reason to start with a new build - way too much risk and complexity-start with a house hack with a low down payment loan-if it goes well, do it againgood luck

We would also provide the down payment and manage the property so that my sister could simply live in it for a year and pay rent until she decides to move.

Leverage the 0% down payment, but be mindful of funding fees.

He is asking for a 25k down payment and then a 5% interest with a loan for 7 years.

You have to consider that turnkey will usually mean less investment up front (down payment + renovation costs) but lower cash flow.