Colorado property question

[Brandi T]

I'm new to the forum (which seems to be a wealth of information!) and to real estate investing.

I am searching for my first property and have come up with two that I am comparing. Any opinions would be great (even better if you are in the Denver market)

Property #1 - Home with a carriage house out back in an up & coming area - can be rented as two separate properties and has already been remodeled so it is rent-ready. Also, zoned R-3 in an area that will likely have future development.

Property #2 - Duplex in another up & coming area that needs significant work. We don't have a clear estimate on how much yet.

So my first question is which seems to have more potential assuming the numbers work on both.

Second, are there such things as rehab "grants"? If so, where can I find information?

Third, is there a quick formula that you use for determining purchase price on a rehab?

I found this one: (ARV * 65%) - estimated repairs = purchase price

Thanks so much in advance