The city's appreciation, vacancy rate, cap rates are truly unparalleled when compared to the other markets you’ve mentioned.

What I did was trying to learn as much as I can regarding the market segment and be able to talk comfortably NOI and cap rates etc.

I avoid tiny towns unless cap rate is very high like 16 to 18.

If I stopped the example here, most would say the portfolio of $100k homes is the better investment.Next, let's assume you decide to sell the Market B homes in year 3 because you are frustrated with the cap ex and management of the tenants in the lower tier houses because you are not achieving the expected cash flow.

Cash flow like this is usually D to D- areas, rough tenancies, and a groundswell of cap ex after you close and hit winter in Buffalo.

I estimate we should be able to cash flow ~$400 per month after 10% for Cap Ex, vacancies etc set aside. 

If I'm paying cash, im not giving anyone 350k, just to get a decent, but not amazingggg COC% or cap rate.

I assume pros are little maintenance, no cap ex for maybe at least a decade, and possible favorable loan terms from developers. 

I buy blend and extends for cash nationally where I can extend the lease or backfill.I buy at 10 cap rate or higher.

If the rent is $3,500/month and you have around $300,000 in total costs (purchase + rehab), you’re looking at around a 10% cap rate assuming financing works out well.