” detached single family homes are terrible investments as rental properties.”
Some folks have made it work—but they know their specific market very well, do hard work in vetting renters (almost certainly violating fair housing laws in the process), prohibit subleases and enforce that prohibition with periodic on-site inspections, and require large up front deposits to minimize risk.
The institutional investors are just throwing darts at a wall.
In my area, almost all rentals are done thru property management companies.
Another challenge is that your best tenants are families that would ideally be well suited to own their homes instead of renting.