I'm trying to get a mortgage, but it's entirely possible that the mortgage might not cover 100% of the price of the house.

Interesting - I have been investing in Philly for 8 years, run a  group of 2500 small landlords, speak at lots of events, know and network with many of the players  . . . but never heard of him before.

Stockton,CA had the most foreclosures in the US, after the housing crash.

I am very happy with investments that have worked on in the Jacksonville area.  

The building is 100 years old, but solid with regular maintenance and updates.

@Eyal Gorenhave you been to the house or the neighborhood? 

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.

Then divide that cost by the amount of time between now and then and that's how much you should be putting aside for Capex.For general maintenance, the age and condition of the building will play into that.

@Jed Butikofer you are in the right place to start getting the next level of education.

Unfortunately, you have no power over the tenant until you own the property.