So for example I'm very conservative and don't want any debt on them because I feel this hardens them in case of a severe recession.

Hate to see you project off to a rough start, that being said the future only will get better if you learn from the mistakes, don't blindly trust, and always verify 

I have a STR in New Mexico and I am seeing the same thing.

.- ALso see if UTL companies have a Landlord Protectoin Program that will auto-transfer to your name instead of shutoff.

See, it's a pain.....and Charles, I'm thinking that you can go from a standard depreciation and then to segregation, but after that is elected, I don't think you can go back...or can you?

You need to speak with an attorney who operates in your state about your specific circumstances to see whether this provides any asset protection. 

Here's some copy & paste info you might find useful:-------------------------------------------------------------------------------------------------You’re ALWAYS better off investing locally, where it’s easier to:Learn the marketNetwork to find dealsNetwork to find contractorsBe more hands-onDriveby property to keep tabs on itNetwork to find a decent Property Management Company (PMC)Next best location is somewhere else you lived, where you have an existing network of family & friends to help you as accomplish the above list as needed.If you invest OOS, your biggest challenge won't be finding properties to meet your goals on paper, it’ll be successfully outsourcing all of the above.The biggest mistake we see OOS investors making in our market, over and over again, is not fully understanding Neighborhood/Property/Tenant Classes and how they impact your probability of success!

Seems like an interesting niche...I had always assumed these were for larger scale commercial investments, but in the recent On The Market episode, Brandon Hall used an example of a $100k property. 

So, I suggest go find some rentals that rent for $2700-$3000 per month and then see if you can find similar properties for sale in the price range you think.

You will see people saying they bought it zero down, seller financing yada yada yada.