one method for scalability maybe purchasing in a different market where you have stronger purchasing power.  

Philly and Chicago both have a lot stronger economics and growth, jobs, industry, etc.

Granted the wood is likely original timber which is more dense and stronger than today's x-generation wood.There's no doubt it would be easier to tear down and build new, but you're not going to get every house under contract to be able to afford that, especially in Boston where it's going to run you at least $150/sq ft - closer to $175-185 and it can go up very quickly if you get into higher end homes with higher end finishes.

Property values have increased steadily, but still half the price of San Diego or Orange County Alternatively you could head to the mid-west where you get a stronger cash flow, but less appreciation (If any)Just my 2 cents.  

What I got from it is with MF unit growth outpacing job growth, that would negatively impact rents, thereby the opposite should be true if job growth is stronger.

In that instance you should probably have more insurance or setup stronger liability protection as you have more to lose than someone who has little skin in the game. 

Cash or Pre-Approved conventional would represent a stronger buyer in my eyes.

You can also make a stronger offer because there are no realtor commissions to be paid.

@Tara Piantanida-Kelly Have you analysed both properties separately, is one definitely stronger than the other (i.e. is one closer to 3% rate, but both combined are 2%)?

Frederick will give you a little bit of both but not a ton of either.In the most general sense DC offers amazing appreciation and bad cash flow, and as you move further away from the city appreciation levels drop and the price/rent ratio gets stronger.