Second opinion on investment properties needed! Property A vs. B

[Calvin Kwan]

Hey Guys,

I'm in the process of offering on 2 properties and need some second opinions.

Property A:

Duplex (currently used as a SFR)

Cap Rate:  5.71

CoC: 2.80%

Cash Flow:  382.29 (includes 15% of monthly rent for expenses)

Note:  AMAZING location!  I personally love this duplex and could live in one unit if needed.  The only issue is that the units are only 1/1, so high rents are hard to justify, though I had a few inquiries to a fake CL ad I posted for a day.  Affluent renters.  Place will appreciate as well since the neighborhood is mid gentrification.

Property B:

Triplex

Cap Rate:  6.72

CoC: 7.27%

Cash Flow:  993.02  (includes 15% of monthly rent for expenses)

Note:  Location is OK.  The property has a mix of 3/2 and 2/1s.  Occupants would be working class renters.  I personally have no interest of living here, but the math makes sense for an investment.  Appreciation is not as high in this area.

Personal Goal: I'm looking to buy/hold property and secure passive income. I'd like to create a large enough portfolio in the next 5-6 years to semi-retire and transition to REI full time.

What do you guys think?  Both properties are offered at the same price, but property A will definitely sell for more.  We reached out to the agent for property A, and there already 13 offers submitted.

Would love a second opinion on this!

Calvin