For me, this max leverage is 75% LTV with a minimum Debt Coverage Ratio of 2.0 (Gross Rents * .5, divided by P&I).By owing 4x as much property as your invested capital, you get 4x the depreciation for tax purposes, which amps your after-tax ROI.

We have been very strict adhering to a minimum of a 640 credit score for applicant and 3 months rent in gross income but we are struggling to get tenants for our properties.

This is the only case where a non licensee can represent others without a license in rentals with the exception of salaried employees. 

I assume the 1-2% rule is gross rents, not net?

I grew up here (in Grosse Pointe Woods) and I am a commercial real estate attorney here.  

That management company has an operating agreement with our other LLC, which owns our property, we are simply employees of the management company and that is how we present ourselves to our tenants.

In the NY market where I put this deal together the purchase price of this SFR was 200k yielding $2,325 per month in gross rents.

5% of gross is the norm.

The owner statement showed no rent for August, but one employee sent me a handwritten statement showing August rents.

Those two cities are growing everyday and its going to be a sellers market because the employees are going to need a place to live and with Dallas having less than a two month of supply of homes available just means there is not many homes out there.