2 Properties - Which do I choose?!

[Calvin Kwan]

Hey Guys!

I have a bit of a dilemma.  There are 2 properties that I am interested in with different offer due dates.  Here are the key details using the BP rental calculator!

Property A:

Monthly Cashflow:  $516

CoC: 5.04%

NOI: $32,203

Offer Due: 2/1 (Tomorrow)  

Notes:   This is a turnkey property in a decent up and coming neighborhood.  I would be able to put tenants into the units on day one.  Seller renovated this property before putting it to market.  I would be putting my counter offer on this property but it's pretty close their first counter.

Property B:

Monthly Cashflow:  $1,234.66

CoC: 8.47%

NOI: $38,157.00

Offer Due:  2/12

Notes:  This is a total fixer.  There is NO inspection report available, but I heard some contractors say it would take about 30K/4 weeks or so to bring up to rental standards.  I doubled this estimate for my calculations.  Great location!!!

I REALLY like Property B and see tons more potential in it.  The problem is in the timing.  I can pass on Property A, but if i get outbid on Property B, or the inspection comes up with major issues, I would be left with nothing.  I could offer on A, but if B sells for less than my target price, I would be kicking myself for a while.  

How do you guys handle situations like this?  Play it safe w/ A, or risk it with B?  

By the way, I'm a newbie investor, so please forgive me if I'm thinking about this all wrong!

Thanks!

Calvin