I admit the $ in the bank is more liquid assuming it's safely under the FDIC insured amount and I can live without it for the 7 days or so the bank can wait to give me a withdraw if the bank chooses to do so.I worry way more about the ups and downs of my 401k than I do my rentals, even though I know those ups and downs don't matter a bit except on the days I buy and sell. 

They will not hang around the place 90 days, but move in with friends, sleep in the car to be safe.

Also, 10 cap minimum to be safe in any market.

Is that safe?

A desirable market where you can live in your investment is a pretty safe bet. 

(loan balance So you could safely bid up to the value of your investment (i.e. first mortgage + your mortgage + costs).Worst case: The property does not fetch enough at auction, so you purchase the property for the price of the first mortgage.Best case: Primary lender does not bid and you can get the property for LESS than what is owed to the primary lender!

Another expense arises from the new lead law for rentals - you will have to be lead safe even when no children reside in any units, so the cost of essentially painting and cleaning plus the testing have to be considered.

It looks like I may have imagined or just played it safe with the separate  account, but the interest is 1% and required. 

It's better to be safe than sorry as a landlord!

Look for homes around the $70k price point because they typically tend to be working class neighborhoods that are safe and solid homes and aim to get $800 or more a month in rent.