Also, different places have different rules regarding Section 8 as far as utilities, but the bottom line is the tenant should always pay electricity.

Your CPA will keep up with the latest rules.

If they paid a deposit you have to be careful how and what you deduct as there are very specific rules for that.

Knowing your sub-markets/neighborhoodsAlways use the old rule of thumb - Location, Location, Location !

Most have a tenant rep broker they use and connect you up with them.Cap rate is usually tied to location ( urban,suburban,rural), location and quality of the tenants ( national, regional, mom and pop), and terms of the lease ( primary lease term in years, level of lease guarantee, rental increases, any termination rights, disclosure of sales, restrictive use rights, co-tenant anchor clauses,etc.).You need a void analysis from a landlord rep leasing broker.

Is this using the 2% rule?

I wouldn't say 12 months is a hard and fast rule.

The general rule of thumb is that the licensing laws do not apply to those who are buying, selling, or managing their own properties.

I know the 2% rule has now become more of a mythical unicorn, but I think the 1% rule still seems possible. 

The rules... you NEED to cash flow 2K/3K a month.