To me, it would be the same as saying someone who owned an auto repair shop would not be allowed to receive the profits from their balance sheet AND draw a salary as a mechanic in the shop. 

Yes there are rules to follow but it's not difficult. 

And since so few are ever audited it is difficult to create a large enough bank of case law to made hard and fast determinations.  

Investing in real estate without the time available to do it right is going to be difficult.

Finding decent contractors is always difficult.

It's a bit difficult to believe that you are not getting any bites at that price here in CO.  

It's a common tactic used by get-rich-quick gurus.Some options do exist but they are difficult and rare.

It is a process which will probably involve giving them notice and a chance to correct, before you can ultimately do an eviction.Either way it sounds like they are/will be difficult so I would strongly recommend consulting an attorney who specializes in evictions.

The reason is that the price range you outlined is likely to put you in C or worse areas and those can be very difficult to manage effectively. 

A tear down and rebuild is difficult enough for a seasoned investor let alone someone new to it.My wife is in medical school so I can relate to the concerns.