Which property is a better buy and hold option

[Ryan Clampitt]

I am currently very close to securing one of the two properties for my investment portfolio. I wanted to obtain the groups opinion on which property may be the better purchase and hold investment option. The cash on cash return is not as high as I would like in year one. However, I am basing this decision on the cash on cash return in years three to five and so on.

Please review both options and provide any and all suggestions, comments and considerations. All responses are greatly appreciated.

Option 1:

Green Bay, WI. - 16 units

Asking Price: 1.275mil

Purchase Price: 1.2mil

25% down - $300,000

Monthly PI - $5,400 based on a estimated 5.25% rate / 25 year term

Total Monthly Income: 12,190.00

Total Monthly Expenses: 10,297.00

Monthly Cash Flow: $1,892.00

NOI: $87,425.00

Cash on Cash ROI: 7.32%

VS.

Option 2:

Rio Rancho, NM - 12 units

Asking Price: 1.2mil

Purchase Price: 1.0mil

25% down - $250,000

Monthly PI - $4,500 based on a estimated 5.25% rate / 25 year term

Total Monthly Income: 11,600.00

Total Monthly Expenses: 9,600.00

Monthly Cash Flow: $2,000.00

NOI: $77,940.00

Cash on Cash ROI: 9.23%

Please let me know if anyone needs additional information.

Thank you.