First Big Deal (Round 2). Help!

[Lou Ruggieri]

Since my first deal fell through b/c the seller caved and told me he was taking his property off the market when I questioned him with a few things brought up by you guys, I'm now a firm believer in most of the advice here being pretty solid.  So first, thank you.  Now, I'm on to another deal that I've been presented.  Again, I have a few residential deals under my belt, but now I'm looking to move to the small apartment building segment.  But b/c this is my first commercial deal, there is a significant amount of trepidation b/c I still feel somewhat out of my element.  So I'm asking for some advice from the experienced.  

Right now I'm trying to decide b/t two properties.  

Property #1:

Six Unit

Every one is cha but 1 person

Every one just renewed leases except for 1 unit and she is moving because her voucher got down sized

Other than that as of right now the building is 100% occupied

The building is completely turn key and all mechanicals are a little under 2 years old , no recent repairs all units are government subsidized (Section 8/CHA/whatever).

. All units are occupied and in great condition

Separate utilities , Tenants pay heat , cooking gas and electric 

Owner does current management

Here is the very simplified income/expense report from the owner:

Now property number two is a 12 unit building.  Not quite as updated as property #1.  And it does have central radiator heat which comes at the owner's expense.  It is also about 20 years old but both are from the early 1900's.  But no government subsidies.  100% occupied currently.  

Rent Roll:

Expense Report: 

So the biggest question I guess is first in the philosophy of which way to go.  The 6 unit can only go so high in terms of gross income.  BUT, with separate utilities, the expenses are far less.  While the 12 unit does have significantly higher expenses, it does have a lot more potential for income too.  The 6 unit needs almost nothing at them moment so repairs aren't a big concern, BUT I know sometimes with government subsidies, tenants can tend to destroy things and leave them in shambles.  And the inspections can be brutal too.  While the 12 unit does need some work, it is generally in good condition.  It has no government subsidized housing, but if and when that central heater goes, it's going to be a ***** to replace (it is relatively new).  

Also, some of the numbers are a little off b/c the 12 unit lists mortgage under expenses as a factor in NOI, which obviously isn't supposed to be there. So from what I can tell, the 6 unit has an NOI of about 60k, while the 12 unit has an NOI of about 70k. The 6 unit had a list price of 435k and the owner isn't super motivated b/c the property is making money and he owns a bunch of other properties so he's sitting pretty at the moment. The 12 unit had an original list price of 430k and is now asking 418k.

Okay, if any of you are still reading, thank you and please tell me what you think.  I have talked myself into and out of making an offer on both of these properties a dozen times since I saw them two weeks ago.  I want to keep the ball rolling, I just want to make sure it's rolling towards profit and happiness.