New to the process -Advice

[Heather Stimson]

As my husband and I are running numbers and trying to decide on our first purchase, we wondered the opinion of others.  We are 50, using a heloc to get started.  Our goals is to brrrr , with our hope to have very little left in debt to our heloc after we refinance. (We would love zero debt to pay back if possible.) We aren't necessarily concerned about a monthly profit on our first 10 or so as we are thinking these would be held for at least 10 years.

So, a question we have about 2 houses - House # 1-smaller,good area new roof, new window, no basement, no garage, monthly income $140, $6000 left in debt to heloc..........House #2 - larger 4 bed, 2 bath, forclosure, estimated rehab 40k, estimated monthly income zero, zero debt to heloc........ higher value home.  

Both have positives, wondered if one sounds better than other? Both show good appreciation in the area over time.

I know this is more of a personal preference, but just looking for input on pro's and con's, concerns etc.   

Thank you