Need advice Look at my Deal

[Jimmy Solano]

So I have 2 deals on the table that I'm trying to choose from.

One deal is:

Asking price: 915k

21 Units total. 4 fourplexes, 1 triplexes, and a duplex. Major structural issues with the duplex. Minor issues with all the others

18 of 21 units rented

NOI: (est) $99,520.00

Purchase Cap rate at 10%

Issues: No property management, no tenant screening, unorganized paperwork, only 5 of the units have leases, everyone else is month to month. Owner dragging his feet to provide/ create financial documents/statements. Due to improper bookkeeping. Ultimately wants me to provide an offer first.  Neighborhood is a little rough but there is a hospital and medical complex and LSU Medical school is up the street.

Second Deal:

Asking price: 360k

14 Units Apartment building. Ranging from 2 bed 1 bath - 1 bed 1 bath.

4 of 14 units rented

NOI: (est) $4264

Purchase Cap rate at 4%

Issues: Mismanaged property management, Owner trying to sell at the top of market at a 4% cap. Actual current performing value is at a 8% cap rate is 124K. I'm worried this offer will insult the seller. Some of the units has either been renovated or are currently being renovated. They are losing massive amounts of money monthly due to 13k worth of insurance and flood insurance annually. And obviously due to high vacancy rate. But I feel with proper marketing and property management it can be worth at least 1 million dollars. However, if i buy in its current state at the current asking price i will cash flow NEGATIVE $1588. If i buy at 124k it will be negative $305.

Please I need advice. I really like / prefer the 14 unit property due to its lower asking price but CAN NOT afford to hemorrhage money monthly like it currently is.

The other property is riskier due to its higher asking price, lack of signed leases, and structural issues to the duplex. About to make an offer of 750k in the next couple of days if you think it makes sense.