Be Conservative or Take a risk between 2 rental properties?

[Brian Adzadi]

Hello BP, 

Long time, no talk. I am in the midst of acquiring my first rental property. My dilemma is I am looking at 2 properties that are polar opposites when it comes to cash flow. Here is how the numbers stack up: 

Property A. 

1. Purchase price: $164,900 4 unit Building with a storefront rented out, Parking lot rented

2.  Mortgage (Tax & Ins. incl) if bought @ purchase price: $1,455.37

3. Gross Monthly Income: $2,490 Gross Yearly Income: $29,880

4. Yearly Operating Expenses: $5,180 Net Yearly Income: $24,700

5. Monthly Cash Flow: 1,034.63

Property B. 

1. Purchase Price: $110, 000 2 unit building 

2. Mortgage (Tax & Ins. incl) if bought @ purchase price: $947.75 

3. Gross Monthly Income: $1,500 Gross Yearly Income: $18,000

4. Yearly Operating Expenses: $18,000 Net Yearly Income: $14,451

5. Monthly Cash Flow: $552.25  

So as you can see ladies and gentleman, these two properties are near polar opposites when it comes to monthly and yearly income. My wife and I will be managing the chosen property ourselves, we have a mortgage of $1,080 on our own primary residence. 

A part of me wants to go with Property B so that I can cover the whole or part of the mortgage if I am dealing with vacancies or turnovers. However, another part of me wants to go with Property A because of the all so sexy cash flow. 

So tell me, which would you guys go with? Oh and for my background, I am the sole breadwinner of a family of 4. 

Would really love you guys input. Thanks.