On June 18th my beautiful, healthy, vibrant daughter was born.

I did a lot of the work myself (as part of the learning experience, and since I was planning on living there) so it did take longer than one would want in a true house rehab/flip, so although I saved on rehab costs it did increase the holding costs since I did not have a tenant to help cover the mortgage until I was done (took 9 months- while working a full time job and dealing with a 3hr daily commute!).

"Or deal analysis" in fact one post a few days ago started with "The RE market too good to be true right now") So one can certainly not blame them for representing the most positive aspects or anecdotes.

True cash flow may likely require better than 1% but there is no one guideline that fits all.

Is this true?

In some cases i believe this to be true.  

However, I'm looking for 10+ years for a reason.  1) The first few years post Bubble anyone could buy low end properties almost anywhere, and 2) Repairs, vacancies and capex don't really show their true (costly) colors until year 10+.How far away are you from the properties and who is doing the management?

depends on the true cap rate of the rental vs the interest rate of the note & the LTV of the note (50% LTV would almost guarantee that you would receive the interest rate  on the note).  

I have an amazing wife and beautiful 9mo old little girl. 

If anyone could help it would be a true blessing.