In my experience they've put rubber socks over the meter leads and put it back in place, which is minimal protection from the situation above.

In order to be successful in this realm....the key is MANAGEMENT. there are very specific ways things must be done in order to maximize return while minimizing headache.

The pros are: everything is done for you, minimal time/effort required, I think they are smarter because they have a lot of expertise built into them that I would never have on my own, and you can easily own in multiple markets.

They take debit cards & checks for a very minimal fee to me (its free to the tenant), but ... at the renter's expense they can pay with a credit card over the phone, pay with a credit card online OR even do something like Western Union.

This will be minimal effort on your part.

If I am only looking at A & B class neighborhoods, should I expect that properties with minimal repairs needed will usually hover around 2% or lower?

After I transferred to a broker that charged me a monthly desk fee, minimal transaction fees, and let me lower my commissions, I actually started getting decent listings as opposed to just working my butt off as a buyer agent.  

It allows you to delay answering any questions until further time and minimizes the discussion/debate as well as provides opportunity to think about all ramifications (I need to check with the owners or my partners- whatever wording you want). 

Adding a bathroom to the main house and some other minimal repairs (painting, new countertops).

Knowing very minimally of what I am talking about, I cant help but be drawn to a HUD home as a first investment.