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.

I might cost to start up the IRA but the transfer fees are minimal.  

All,I know the typical way to minimize your exposure to capital gains and employment tax is to hold the property over a year.  

It will simplify and minimize your taxes.