I can make the down payments in the smaller market on cash-flowing deals, but these bigger markets require 40-70k to make a deal the conventional way, and I just don't have that to invest.

Marketing, screening, collecting rent, unpaid rent, maintenance, capex, insurance, lawn care, vacancies, turnover costs, inspections, and so much more. 

However, since you put the asset into an LLC, I am going assume you care about asset protection and further this discussion just a bit.My advice to you is to seek out local banks where much of their business is derived from commercial lending.

Staff often seemed to focus on one requirement at a time, and only moving on to others as each was taken care of, instead of starting them all at the same time.

LTRs with long term conventional financing and standard management aren't really cash flowing anywhere right now. sure, there are lower cost markets that look better on paper, but there are costs associated with those supposedly cheap markets as well - deferred maintenance, more challenging tenant base, higher cost turnovers as a percentage of the rent.2. i wouldn't pick a random market thousands of miles away based solely on statistics or numbers. 

That said, you deserve a management team that treats your properties with the same level of care and attention as they would for larger clientsI’ve heard from other investors that finding a great PM company can be a game-changer.

In Phoenix, where I’m based, or in markets like San Antonio, the best realtors do more than just list properties.. they go “driving for dollars” to find oppurtunity, leverage their local networks (probate attorneys, CPAs, divorce attorneys) and carefully analyze each property’s cash flow.

@Tyler Kesling  Adding to the above great points, start with 2-4 units as it's standard conventional financing.  5+ units is commercial and somewhat of a different ballgame.   

Typically, since I'm well connected because of flipping, HVAC, roofers, lawn care, carpenters, kitchen & bath & plumbers and electrical all are good sources.

But be careful with day trading.