Deciding between 2 HHs in San Diego

[Nicholas Glatter]

Hello BP, I'm currently looking to make my first purchase in San Diego, CA. I've come across two potential buys that couldn't be more opposite, needing help seeing the bigger picture. Both 4b 2b

1. https://www.zillow.com/homedet...

2. https://www.zillow.com/homedet...

Property 1 has been recently remodeled, everything has been fixed on this 1909 home. The main issues I have with it would be that it sits on a slope, it's obvious that the water flows down hill on the property and could need adjusting over-time (sits on beams) the common spaces for the home would be the living room and kitchen (not a lot of room for 4 total people to live 1,488sqft). The surrounding neighborhood isn't the most pleasing to look at and wouldn't be your first stop as a future tenant. The huge upside to this property is there's a flat plot of land big enough to put another house on it in the back...

Property 2: It's in a better neighborhood, a well populated area with well kept streets and homes. The house it's self is huge for San Diego 2,316sqft. The home is appealing on the inside with several spaces to live and or lounge (extra living room, extra upstairs bar/lounge, extra reading space.) It would be a more appealing home for tenants. The only down side is everything is 70's dated. I could update everything but after that there's no room for forced appreciation. 

Go with the updated house and add value/home on back lot later down the road and deal with possible run off issues? Or get the spacious home that needs some remodel tlc with not much future forced appreciation after the remodel? 

[Theresa Harris]

@Nicholas Glatter  Are you allowed to add a second home on the one lot?  I'd check that you first.  From what you wrote, that is the only thing exciting you about the first home (you mention smaller size, problems with slope, and surrounding area).  I don't see any problems with the interior of house 2.  I was expecting bad wallpaper, shag rugs or something similar.  It is good as is.  You could remove the mirror on the living room wall and change some of the lights in the kitchen.