HELP! Need your help analyzing my first multifamily deal - 2 Triplexes

[Matt Fish]

Hi everyone. I have the option to purchase 2 different triplexes and I need help analyzing the deals - getting opinions on the best way to structure the deals and also opinions on which seems to be a better deal since I may only be able to purchase one. If your opinion is that neither is a good deal, please share that too. The units are only about a 1/4 mile from each other so there is no advantage to either for location. 

Triplex #1

2800 sq/ft. building on 1 acre of land

1st & 2nd floor - 2/1. 3rd floor - 1/1 - all currently occupied

Current Total Rent: $2,500

Purchase cost: $180,000+

The property is in good condition but does need a rood and some exterior maintenance - about $10,000 total. The lot can't be subdivided and the original building remain a triplex. I have already spoken with the county and I could subdivide and into 3 lots (1 original and 2 new) but the property would have to be turned back to a single family house, or can remain a triplex and not be subdivided. 

The original deal was structured like this: purchase price $225,000, $100,000 due to seller at closing and $125,000 seller financed over 10 years at 4%. I was going to subdivide the lot and sell off the 2 new lots for $50,000 each too recover my $100,000 down and then keep the triplex and pay it off in 10 years. The county put an end to that deal yesterday. so after speaking with the seller, he said make him a new offer and the only thing I know for certain is that he said he will now take $50,000 down now and finance the rest (that number depends on what I offer).

I was thinking about offering $180,000 - $50,000 and $130,000 seller financed at 3.5% for 10 years, amortized over 20 years.  This would make monthly debt service $753.95/mn with a balloon of $76,997.87 due at the end of the 10 years. Perhaps at that time I convert it back to a single, subdivide and sell everything, or just sell the triplex.

Triplex #2

3,900 sq ft building on a relatively small lot but quiet dead end street. 

All 3 floors are 2/1 but the 3rd floor could have access to a 4th floor that had 2 more bedrooms and 1 full bath but current owner uses this for storage and current tenant can't access. 

1 floor empty, 2nd and 3rd rented

Current Total Rents: $2,400 ($800 per floor)

Purchase cost: $90,000

This property has great potential but needs extensive rehab. It was inherited by  the current owner 30 years ago and they have reinvested almost nothing back in. Interior and exterior needs an estimated $170k-$200k (roof, siding, windows, 3 porches front & rear replaced, new septic system, HVAC, plumbing and 3 interior renos).  If this work was all completed, the total rents could probably be increased to $3,600 a month or more as there is also a first floor studio apartment (an addition on the back) that is currently used by the owner as storage + the 4th floor could be added to the 3rd floor apt. The building is listed by the county as a triplex so it would need to pass a hearing to add the extra studio as rentable space, but the potential is there. 

The owner wants $10,000 down and will finance the remaining $80,000 at 3% over 7 years. I would have to find a bank or private lender to come up with the renovation money though.

#2 is a more desirable building on a quiet street with more rent potential. I don't like the fact it is on septic vs #1 on public sewer. #2 requires less renovations and has more options on the exit strategy. 

So what are your thoughts? #1?#2? or neither?