Which property do I choose?

[Nicole A.]

It's a snowy Sunday in Baltimore! So far, more than the 1inch they called for...and I just got back from Dundalk to take a 2nd look at a 2-unit I'm interested in.

A landlord I know has two properties that I looked at today:

**Property #1: 2-unit duplex:

2 bed/1 bath apartment on both levels.

Shared basement.

Separate utilities.

Off-street parking

Furnace/ no central AC

Asking $79,900

According to contractor, needs about $4K in work.

Rent could be $800-$835/month PER unit ($1600 or so per month)

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**Property #2: Cape Cod single family home

Asking $89,900...said right off the bat he'd take $84K.

Just a few minutes from duplex, so same general area.

3 bed/1 bath, but must pass thru one room to get to 3rd bedroom.

Off-street parking, nice yard, cute neighborhood.

Needs about $3-4K

Heat is by oil and it is not working. The owner mentioned he may replace it.

Currently vacant. Owner last was getting $900/month in rent, but that is low.

I looked on Zillow for rent comps and couldn't find any currently for rent in that neighborhood.

My guess is I could get around $1150/month.

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I will be financing with a mortgage.

Clearly the duplex will cash flow more because I just know the Cape Cod can't get $1600/month in rent...not in Dundalk, MD.

My dilemma is having that single family home that tends to bring in a longer-staying tenant (so I hear). No more complaints about noise of their neighbor upstairs/downstairs like in the duplexes. Generally nicer neighborhood for the Cape Cod.

There is a house for sale directly across the street from the Cape Cod for $137,000. And he's only asking $89,9K....and it doesn't need too much work to shine again.

Which property do I make an offer on???