Comparing two cash flowing duplexes

[Thomas Brady]

Hey BP members,

If you have read any of my other posts this week, you know that I am closing in on making my first real estate investment. It has ultimately come down to two different duplexes. Both have their ups and downs, so before I make a decision on one, I would love some advice.

Once again, I won't bore you with the nitty gritty details, but here is an overview.

Duplex #1 This duplex is 4,200 square feet with a total of 8 bedrooms and 6 bathrooms. It is right near the university in what I would call a C or C+ location. I would rent it by the room to maximize rents. after all expenses are accounted for, it would most likely cash flow around $500/month....perhaps as high as $750 

Duplex #2 This duplex is  2,500 square feet with a total of 6 bedrooms and 4 bathrooms. It is in a fantastic location that I would say is nothing less than an A. the only problem is that when I crunch the numbers on this one, my cash flow is only around $100/ month....maybe as high as $400, but I'm trying to be conservative. (although they did just put a new roof in, so my capex budget might be a bit high.)

So my question is this: Do you go after the higher cash flow in the worse area (not that it is by any means a war zone), or buy in a great location that may not cash flow as well, but is almost certain to appreciate over the long run.

Thanks!