Rents in these areas are often subsidized, around <$900 a month on average (again, Indiana, but proceed accordingly as a loose rule).

In ky from my understanding we can still evict for holdover and I'm not willing to loose that card in my deck in the hopes of locking a tenant down for longer. 

This probably doesn't affect a whole lot of folks, but if nothing else its a good sign as far as the appellate court's view of excessively overreaching ordinances:https://courts.illinois.gov/Op..."

To my understanding I will need to bring 25% of excess amount in a form of a down payment. 3 bedrooms and up are around 385k ish and up.

This is one very good reason to have a property management firms are worth the expense as the time you loose looking for vendors, scheduling, getting work done, can cost you more that your expense of management.

It has to be move-in ready and pass a fairly strict inspection that's done to the same standards as FHA or VA loans.The property must be in an eligible area, but they interpret "rural" pretty loosely. 

So now let's say you raise the rent to try to boost income, but then you loose one or two tenants in the process.  

Plus the tenants end up getting pissed at you because they are often getting billed well in excess of their usage with no rhyme or reason.  

Here is a short list of what they are looking at having complete: no loose wires, no holes in walls, sheetrock complete, all windows in, roof finished, flooring installed.

Such as: You are behind in your rent in excess of your security deposit.