Location vs. structure. Also, how to value wooded land.

[Rj Kro]

Hi all-got a question I'm hoping you knowledgable folks may be able to weigh in on. 

I am interested in purchasing a property to use as a workspace/garage for personal use. Thus, cap rate/cash flow/all the typical metrics one uses to value a property would be out the window. It wouldn't generate cash; it'd be a consumable good, effectively. There are two properties on the market that KIND of fit the bill, and I'd like to have more sets of ears on it. Here's the specs:

prop #1- nicer neighborhood. just under 6 acres, mostly wooded. single family house needing a total rehab/gut. zoned R. listed just shy of 200k, has sat for half a year; I'd be aiming for 100k-120k-ish. has no garage/warehouse on it; I'd need to navigate zoning, and build to suit. It's a gamble in some ways, as I don't know if I'd be able to build what I want due to zoning.

prop #2- crappy neighborhood. 1/4 acre, BUT-has a single family house, small garage, plus warehouse space that's ~2500 sq ft. zoned C. cheap. house is also a total rehab. closer to "move in ready", but honestly, the crime in the neighborhood is to the level that I don't think I'd bring my kid there now. Good chance will turn for the better in the next 10-15 years. sale price closer to 100k.

In many ways, this boils down to good location/no building  vs. good building/bad location. Carrying costs are negligible, slightly cheaper on option #1. (An X-factor is that I really don't know how to value a 6 acre wooded lot that's within the confines of the city, not way out in the boondocks).

Any thoughts either way on this? Thanks for any feedback!