Need advice on deciding between two properties

[Vincent P.]

Hello BP- need your advice on deciding between two completely different two family homes. These are strictly for investment purposes. I live in New Jersey and taxes eat a good portion of your profits here. Both properties are in similar towns but the more expensive property is in the nicer part of town and the cheaper one is in the less desirable part of town(not unsafe in any way).  I am a full time professional and do not have to much free time. I am a buy and hold investor.

Nice Property

Built in 1970's , 2600 SF

(2) 3BR 1.5 bath apartments

Definitely a turn key home

Long term tenants in each($1950 each)  rents maybe under market buy $50-100 each apartment. Tenants pay every single utility). Both tenants want to stay.

Property around 500k, so would be looking at a mortgage of 400k(about $1750 per month)

$3900 rent roll- $1750 mortgage- $800 taxes- 150(insurance) - 150(incidentals)= $1050 profit per month.

Rehab property

Built in 1910,  approx. 1500 sf

(2) 2 BR 1 bath.  One apartment the second bedroom is a little small.

Complete gut job. Needs new roof, new windows, both kitchens and baths. Rough estimate $70k. The tenants would need to go.

Could potentially rent for $2500 and maybe $100 for the garage.

Could probably buy this one for 200k.

After rehabbing if I could refinance the property and mortgage  220k

2600 rent roll - 1000k mortgage- $500 taxes- 150 insurance -150 incidentals= $800 profit per month.

Obviously with this house there would be down time with the renovation, permits and finding new tenants.

Does either or non make sense. I figure the nicer home given the age would appreciate better over time. I may be able to extract value out of the reno home but with a old home I would expect some issues during the renovations.

I am very curious to hear everyone's thoughts as this would be my first investment property.

Thank you,