Help me evaluate these two properties

[John Feustel]

I may have slightly different ambitions than others on here. I'm not looking to build an empire, just eventually generate about 40k/year in rental income in 10 or so years.

My wife has some rental property experience growing up (father was a landlord), but this will be our first rental property. We want something that will be a good intro to rental property without too much of a risk (just in case we realize it's not for us).

We're in the Rochester NY area. I know I could look for places all around Rochester to meet the 50%, 2% rule, but I'm also interested in location. I've rented in the area for a number of years while going to college so I know the nice areas that attract better tenants. Also, there's a slight chance we might owner/occupy these properties at some time, so I want them to be in nice, safe areas.

Anyway, here are the two best prospects so far.

#1
2544 sq/ft 2 unit house
3 bdr 1 bath : $975
3 bdr 1 bath : $975
Tenants pay all utilities
New roof, new gutters, possible 3rd apartment in large attic space
$139,900

#2
1574 sq/ft 2 unit house
1 bdr 1.5 bath : $650
1 bdr 1 bath : $600
Tenants pay all utilities
$79900

In the areas that I'm looking, both of these have the highest rent/value ratio I can find.

Suggestions, thoughts, opinions? Thanks for any help.