Assuming the bank has the loan on their balance sheet (not resold), would they want to call it due if the interest rates only went up by 1.5% since the time of closing? 

And, having ready access to capital allowed us to scale more quickly.  2) Because the compensation is so balanced, it makes passive investing much more attractive.  

Specifically I now track month end account balances, maintenance expenses and have a detailed list at my fingertips of the tenants that are late on their rents.

Days on market is about 2 months, slightly better than earlier this year but relatively speaking, it's still a more balanced market compared to rest of the Bay Area.

I am speaking to you from experience 20 properties later, yes it is ok sometimes to overpay but once you are established and have a decent sized portfolio which could balance out any potential pitfalls.

Here it would be 25% down ($275k)A balance of $825k at 7% (or higher) $5,490/mo, figure $250/mo insurance, $500/mo property taxes $6,250/mo. 

We can’t profitably turn it into a LTR, or easily anything else.Desirability - well two favors balance out.

Without knowing the balance on the first, I wouldn’t touch it at at the auction.

You lease should state a interest fee for unpaid balances.

Couple of details that would help the community here: what's your estimated value of house "A", the loan balance, and monthly rent?