Apartment deal options - which would you choose?

[Nathan Norway]

Hello everyone, I’ve been analyzing deals on apartment buildings and two of them have caught my eye and I’d like your opinions on them!

1. Purchase price 2,800,000

- 18 units (mostly 2 br)

-cap rate 7.7%

-gross rental income 302,400

-NOI 215,312

2. Purchase price 900,000

- 18 units (12 are 1 bed , 6 are 2 bed)

- cap rate 10.4%

- Gross rental income ~140,000

- NOI 83,600

The first one is near a major college campus, so tenants are most likely students, the second property recently reached stabilization. I think both are interesting for their own reasons. I’d also like to mention I’m assessing these as bringing “hustle” into a deal. I’m new into investing but have experience in financial analysis and reducing costs in an engineering role.

I look forward to hear your thoughts and comments on this!