There is some updates that need to be taken care of like flooring and paint to get top value based on other sales in the neighborhood in the 170-175k range. 

I am posting this question in this forum to get a better understanding of which of the two locations is more profitable for a beginner with low capital as I have heard it's near impossible to buy in DC within an affordable range. 

@Jeremy Roberts At first glance, HELOC rates now are closer to 5-6% range, sounds like you guys got a deal!

There is some updates that need to be taken care of like flooring and paint to get top value based on other sales in the neighborhood in the 170-175k range.

You invest under your own name and carry sufficient insurance.

I've gotten several quotes ranging from $2k-6k a year. 

Our total capital contributions over the 20 years would be about $2.6m.So my first question is, can you find businesses (like apartment buildings) in the $800k-$1m price range that cash flow $24k per year after debt service and > $120k per year after the debt is gone?

Since a 3/2 can differ in value from one neighborhood to the next, I'll give a range of value depending on upgrades and small differences.

Edit: PITI on the house can range from $600-1500.

Not sure if I am calculating those numbers correctly but the rental comps are within that price range.