Better Deal Multifamily 3 BR REO or 4 BR Approved Short Sale

[Kenesbro Brown]

I want to buy my first owner occupied investment property in Queens, NY. But need advice on what would be best if I am hoping to close in 2 months. All tenants pay their own utilities.

Option 1 400k - Approved short sale 4 BR multifamily house been on market for over 180 days.
Owner occupies 1 BR No rent
Tenant 1 occupies - 3 BR - $1800 rent
Tenant 2 Rentable Basement Studio - $800 rent

Option 2 400k - Bank owned REO 3 BR multifamily house been on the market for over 100 days.
Owner occupies 1 BR
Tenant 1 occupies - 2BR - $1800 rent
Unfinished Basement - Needs work but could be rented after repairs...