If a few go bad, it’s okay because the good ones outweigh the bad and it’s a net success. 

My experience the cons outweigh the pros for it.

My question - assuming balance is paid in full every month do the perks from the 2% cash back or points/miles outweighs that 3% charge for using credit cards?

As @Tim Swierczek said the city is becoming more anti-landlord but I don't think it's enough to outweigh all the positives in the market.

The ability to pre-cast textures, openings, etc seems like a great benefit, but your points likely outweigh those.

Does service outweigh price if it is still within reason?

If you look into it I think you'll find that for most mom-and-pop investors (especially those with small portfolios), the cost outweighs the benefits (with the main cost being that you'll need a more expensive commercial mortgage instead of conventional one).

I like properties where the demand for rental properties outweighs the supply. 

He should be free to decide if his needs for cash, say for another home or investment, is out weighed at some interest rate.

But in my experience, appreciation outweighs the maintenance expenses by a lot.I bought my first house at 25 and sold it 5 years later.