Denver duplex analysis

[Jeff Libby]

I am looking at some properties on the MLS in Denver right now, just trying to learn how to analyze in order to prepare for investing. I want to compare and contrast two of them specifically but I'm having a little trouble because of the differences.

My goal is to buy a duplex as my first property so I can live in one unit while renting out the other. I think this is a pretty common goal for a newbie and is especially important in Denver as rental prices have been so high.

The first duplex is by old town Englewood, going for 270k and is an up/down. Each unit has about 1200sq ft and are 2bed/ 1 bath. There is a large garage and a decent sized yard. The bottom unit has nonconforming bedrooms and my guess is that i would need to spend about 3k to fix this by installing windows.  It has been recently updated with rents totaling about 2100/mo, the top renting out for 1500 and the bottom 600. I think this is probably the maximum income I can get from this property. My expenses for this property (not including renovations or maintenance) would be about 1,700/mo so if I lived in the bottom unit, I could possibly pay about 200 out of pocket.

The second duplex is a side by side in Lakewood going for about 320k. Each unit is about 1100 sqft and again, 2bed/ 1 bath. There are two attached garages and two large yards. This property could use updating. The rents are at 1000 right now but haven't been raised in years. I think if I were to update the units, i could get 1500 out of each side. My expenses would be about 2000/mo not including renovations and maintenance. My plan would be to live in one side and renovate it while collecting rent from the other side. I would have to pay out of pocket about 1000/mo for rents today, but the tenant on the other side is on a month to month lease so I would raise her rent to 1200 prior to updating and pay 800/mo myself. After updating the unit I am living in, I would rent it out for 1500 and move into the other side and do the same thing. 

I think for long term, buying the second duplex would be best because I would get 900/mo more in income, and my expenses (not including renovations and maintenance) are only 300 more. Any input would be greatly appreciated!