It makes sense to me to first find a property with a favourable yield (comparing real estate in UK, US, Canada and so-on), then find a local representative/agent to facilitate the purchase, rather then finding an agent that only shows the few properties in their portfolio.The time it takes to sell a property can also be decreased by opening up your listing to the global market (i.e. marketing to overseas investors).

My next concern is 5% for maintenance and nothing for CapEx - I would have these numbers closer (or at) 10% each.The only (quick) way to increase cash flow on this deal would be to decrease your mortgage.

Yeah, I would demand a decrease of rent if it heat is passed down. at least 75.

In the end, this business is more labor intensive in the beginning but can be automated to dramatically decrease hands on labor.

A more expensive property ($450-500K) with less return (due to higher price point) in an area that has job growth and population growth, up and coming popular scene, cap rate around 5%, about a 1.5hr drive from me.  2. a medium expensive property ($300K) in area with good schools, cap rate about 7%, local to me (15min), low crime, nice town, stagnant or slightly decreasing job growth and population3.

The value of your property will increase or decrease based on the market (along with how well you maintain the property, whether you make improvements, and whether you are able to raise the rent over time), not based on how much equity you have.3)  Equity trapped in a property is a reason for you to be sued. 

I'd really like to not decrease rent. 

for example if I earn 15k in rents in a year but show a net loss of income of -2k will my lender use the 15k in rents as a positive for my debt to income or will they use the net number and use that house to decrease my borrowing power?

Rent will also fluctuate, but maybe less.If you were to take on leverage, your main risk is vacancy increases and/or rent decreases.

I'm kicking the tires with just leveraging a bit to decrease my investment and increase my return more but was wondering about the possible sale contract option if I could get a loan to cover me and get me a bit of the cash out.