Take into consideration the mortgage, taxes, insurance, HOA fees, and cash reserves for home repairs or replacements.

If that's the case then, when people walk over that portion, they will invariably step-on or kick that little rise.The little rise has survived a few months so-far but I'm worried that it will break-off in a few years and after my flooring is no longer sold.Good luck on your quest.  

One thing I have run into is a major market that has rising 5-year vacancy rates, and rising YoY permitted units. 

For Landlords, Rising Housing Costs Make It Harder to Earn Passive IncomeBP's Scott Trench is quoted. 

Bravo for being honest about what wholesaling is... but like all sales some with rise up and succeed no doubt.. just like some Real state agents become mega agents... there is only so much room at the top.

With interest rate rising, what do you guys recommend variable or fixed rate mortgage and why in Ontario, Canada?

So are far as your cities and plan - both seem inline with what others in your situation might also do, maybe looking into El Paso ( I think MST part of TX) and Phoenix areas might be worth looking into as well for you- both landlord friendly states.The reason I went into so much detail however about landlord friendly- was just something to take into consideration as you narrow down your options and to keep  in mind as you move forward and compare purchase price points, taxes etc. 

Pretty much the regional tier 2 hubs in the strongest employment states are the strongest candidate cities.Now as for your capital appreciation thesis:I'll be a contrarian and bet that tier 2 cities will not lag behind tier 1's in the future, either tier 2 rises significantly, or tier 1s fall catastrophically.

Many mid and high rises will have a free or discounted level of internet and cable tv from one provider.

"Quite a bit of work" can mean considerable renovation budgets, plus potentially large, expensive, unexpected items that come up in the construction process.Half of a duplex is also an odd situation, but that may be more Canadian than US real estate.It's really a matter of risk vs potential reward.