NEED HELP ASAP-25hrs! 2 properties - which do i buy?

[Daniella Ortiz]

I don't know what property to buy:

Property A:  Pros: In up and coming area.  This area WILL appreciate significantly over the next 5-10 years.  A great LT investment. Had remodeled bathrooms.  Great location.  Cons: will need new roof in 5-10 yrs.  Needs all new floors (1500 sf), new kitchen.  New HVAC.  Popcorn ceilings have to go.   Price 257K - mortgage is around 1700/mo.  Rental comps are about 1500/1600ish.

Property B: Pros: Price 180K, which I love. Rental comps 1300-1400.  Mortgage 1100.  In less desirable area (not as much to do - mostly residential), but usually easier to find renters. HVAC and roof are new.  Also has a beautiful view of a stream from the back porch.  Cons: Probably won't appreciate as much as Property A due to location. Needs new flooring, kitchen, bathrooms, popcorn ceiling.

Ideally, I'd want something that will appreciate but also be able to rent out in 1-2 years after I move to my next property.  

[Nnabuenyi Anigbogu]

As Jacqueline stated Prop A is cash flow negative and to me that is a non starter. Even if in 5 years you can gain significant equity, there is no way to know what will happen by then. What is appreciation slows down? It is akin to gambling and investors are not gamblers. Even if it appreciates, with the amount of cash you are paying just to keep it afloat you might end up just breaking even in the 5-10 years.

Prob B is also cash flow negative once you factor in maintenance and reserves. I personally would not buy it either especially given the fact that you said appreciation is much less likely.

That is my opinion based on the initial reading of what you wrote.