Evaluating Options for First Property

[John Len]

Background:
- Have on hand 100k cash to invest in a property

- No debt 

- Excellent credit score (790+)

- First Time Homebuyer

Situation: Currently at an impasse on how to evaluate the options and would love opinions and help find some pros/cons that I have missed

Option 1: Buy relative's property 

Type: Townhouse with 3b 2.5b with 3 levels

Location: Provo

Cost: 300k (negotiable)
Down payment: 100k(negotiable) 

Interest Rate: 0%

Monthly Mortgage: Roughly 3.3k with a 5 year loan

Rental Income: 1.5k

Terms are negotiable

Option 2: Buy another property at a different neighborhood

Type: Single Family or Townhouse
Location: Lehi

Cost: Average in the area is 500k+
Down payment: thinking of putting 5% down

Interest Rate: 6.5%ish

Monthly Mortgage: Roughly 3k

Rental Income: Estimating 1.5k-2k (depending on # of rooms)

This is more of an average of the area that I've been looking at

I've been thinking about this for a while -- Option 1 the 0% interest rate is very attractive to me given the interest rate right now, however the downside is the higher down payment and monthly mortgage

Option 2 Buying at a different neighborhood would also be closer to work for me and most likely be a newer property. It is also at a very good location with plenty of renters

I've always read/heard about just putting down as little as possible but could I potentially buy the first property then cash out-refinance or get a HELOC or is that too dangerous in the beginning.

Would appreciate help for someone starting out in their real estate journey!