If it were me, I would not invest in anything that has HOA fees. Maybe buy a small apartment building? With a small building, you will most certainly have at least a few of the untis rented at all times, plus small units (1 & 2 bed)are easier to keep rented.

I would not live in the same building as your renters. Bad idea. Even the granny flat idea isn’t a good one, unless you can rent to family.

Another alternative is to buy a small house in a decent place. Just make sure your rental income will completely cover your expenses.

I have a SFR that I’m renting and I have found out that you need to have cash reserves to properly cover unexpected expenses. If you’re cash strapped, because you don’t get enough money from rent to cover expenses with a little for maintenance, you’ll be hurting.

My monthly maintenance expenses including lawn care are about $125 per month. This includes a cushion for large expenses like H2O heaters, faucets, appliances, plumbing, etc.

I think you’re on the right track, and rates will not get lower, not to mention if we get crazy inflation over the next few years, RE is the best place to be. Your cash will be worth less in a high inflationary environment.

Never under estimate the value of a house. Everyone needs a place to live, and there’s intrinsic value in a good place to live. In the long run, houses are worth much more than paper money. I think it’s best to focus on what is truly necessary in life. And I believe housing is one of the true essentials.