Of course, your specific block may be higher or lower.

I think the ability for the lower cost places in the midwest to 'cash flow' has been way, way overstated.If you know a market well though, that's definitely an advantage.

We are looking into houses on the lower end of the scale at first to get started for a "low risk" (we could pay mortgage out of pocket no problem even if property is vacant for 30 years) house that will give us the experience we need as rental home landlords - and I am looking down the road at potential investment ideas to keep this thing rolling.

Always charge market rents.

I'd much prefer to put $60K on a down payment and closing costs so I have $50K to fix it up.So a couple of questions: 1) Am I mistaken in thinking those kind of lower down payment products are out there for regular folks like us? 

You can have a box of items that are free for tenants to take/use: toothbrush, toothpaste, charging cables left behind from other guests, sunscreen, unused earplugs, etc.

Also depends if you are getting appraisal and what attorney charges for creating loan docs

Expect, to only get about 8% (or lower) of the properties you buy redeemed.If you pay close attention to the type of property, and do research to protect your interests, the percentage does jump up to about 30%-50% on the properties eligible for two year redemption.

Value add ( do you want to do reno/raise rents), or stabilized (income producing, lower maintenance). 

A very prominent loan officer in NJ was charged recently for helping borrowers do just this.