Comparing Rental Properties

[Ben Sears]

I'm currently looking at two potential rental properties but having trouble running the numbers and developing a system to determine which is the better deal. So I turn to the experts at BP!

Property 1

980 sq feet with an unfinished basement. 

Listed for $80k but would lie to get it around $60k. Some potential for natural and forced appreciation. 

Likely rent is $600-$700/month with a $450-$500/month mortgage on a conventional 30 year. 

House needs approximately $8k in work but is currently rentable. 

Property 2

950 sq ft with upgraded utilities, electrical, plumbing, AC. 

Listed for $32k and held by an investment company. Little to no appreciation is expected in the particular location. 

All cash offer and the property is currently rented for $475/month. 

What is the consensus? Been a flipper in the past but never a landlord so this is still new to me.