All those states' metros are going to have a relatively tough time "cash flowing" with minimum down and standard LTR.  

Is that a national guideline or is that just more local bank conservative standards? 

It lacks good standards for entry and results in a lot of noise from potential renters and messenger I not something I normally look at.

If you do section 8 you also have to be aware that your notice requirements for renewal and also for lease termination are longer than the standard lease.

I actually interned for a company in Iowa City that did real estate, property management, new home construction and development.

The requirement is that the house meet habitability standards, and building code standards say a house must be pest free to be habitable.

I think what you describe is pretty much standard performance for rental properties if your not paying cash and I am just assuming your putting max debt on them to try to get your return numbers into your criteria..

@Tyler Kesling  Adding to the above great points, start with 2-4 units as it's standard conventional financing.  5+ units is commercial and somewhat of a different ballgame.   

I am above 50% on standard Visa/MC, below 50% on Amex, and about 0% with anything that is like a local credit unions. 

Now the tricky part is creating your underwriting standards and system.