Newbie in Cincinnati (NKY) - 2 Deals to chose from

[Chris Eden]

I am a new investor in the Northern Kentucky area. My region is essentially the southern suburb of Cincinnati. I am focusing on an urban area. I am looking to invest in my first property and essentially have two deals that I am considering. My main question is, what deal should I take? Or more importantly, should I try to do both?!?

Deal 1: a $42,000 duplex in a blue collar area with a motivated seller. If I do this deal I am going to owner-occupy for a year or so and do an FHA loan. Both units are move-in ready and vacant, but they bring roughly $500/mo when occupied. All utilities are separate and could be payed by tenant, but there are no appliances (fridge or oven) in either unit. I seem to be getting reasonable FHA pricing on this deal - 3.5% down, 3.5-4% rate, asking owner to pay closing, etc.

Deal 2: I have a solid lead on a yet-to-be-listed $70,000 triplex in a hotter neighborhood. The building has a large two bedroom top floor, an efficiency unit in back and a small commercial space in front. All units are occupied on month-to-month agreements. This unit has the same furnace, electrical and water heater for the whole building, so I would pay utilities. The owner is wealthy and doesn't want to deal with the hassle of land-lording OR selling in a traditional sense. He is free and clear on the property and is considering seller financing for the right buyer. This would require around 10% down, a short term agreement until I can potentially refinance in 2-3 years, a finders fee for the middle man (3-5%?) and other costs. 

Finally, a little about me: I am a college graduate, early 30's, make about $60K a year and have reasonably stable finances. I have been researching real estate investing and pouring over listings in my market for at least 6 months (BP has been awesome, btw). My inclination is to jump in with both feet and go after both deals. Both are cash flow positive with solid cap rates and I am going in with eyes wide open (as much as possible) Anyone wanna talk me off the ledge?