We have a cash purchased SFH in Kansas City MO that we got for $75k cash, that rents for $875/mo (After management fees, taxes, and insurance, we profit $580/mo). 

Save up for 3-6 months' worth of mortgage payments, property tax, insurance, and upkeep costs as a safety net.

Our biggest cost, other than your given things like property taxes..... is going to be snow plowing, but that's only a few months a year.

Is this just a function of low inventory, high interest rates, and high taxes? 

Great for tax purposes. 

@Jim Doyle- thanks   1) consider increasing the purchase price by the amount of the elec and roof  work that needs to be done  and then assist  seller with  getting the work  scheduled and completed  ( as this will be required to be donw before closing ) ..this way the  seller  is technically  paying for the  repairs  and they wont lose  any  proceeds ....they will pay a little  extra  wa state sale excise tax  but  that  wont amount to too much  2)  consider  putting less down  and using some of your funds to pay for  the repairs  ( or part of the repairs )   3)  consider using a rehab loan  4)  consider  keeping the price  where it is and asking for the sellers to complete  repairs  (  this likely wont happen)  5)  get roofer and contractor  estimates and get them  lined up to do the work asap  as it might takes  weeks to get this scheduled / done  6)  ask seller for  extension on closing date if the  work  will take  longer than 10 days ,,,Good luck

Would I have to buy something at 925k less realtor fee, in order to get the tax shelter?

Property appraiser/tax assessor maybe.

They will allow your mortgage payment and any personal debt payments (credit cards, cars, etc) to reach about 45% of your monthly income.Programs vary all over the place so it's best to ask a mortgage broker which programs you qualify for.They like two years on the job, rent paid on time, no liens or judgments, pay stubs, tax returns and so on.FHA has a 3.5% down program plus closing costs.

Some quick tips I recommend.First 2-3 auctions...go to watch and observe.