Which is the better deal?

[Ken Ly]

Hey guys,

Stumbled upon here by accident and really love this site...coincidently was faced with a decison on a couple of properties..I'm just starting out so please be kind..wanted to get an idea of what would be a better investment...I have 2 rental properties to choose from...keep in mind I will be financing with the traditional 20% down conventional loan:

Prop 1: $200K...2 units...total rent $3,075/mo...$24,497 net operating income...section 8 tenants..property needs tlc

Prop 2: $235K...sfr but renter is using it for his business...20 years he been there and has a lease until 2014...$2,400/mo...$25,110 net operating income...renter pays for all repairs and maintenance

It may seem like a no brainer but I'm stuck...any thoughts or opinions? I plan to hold on to the property for a while but want the flexibility to sell if I decide to move onto something bigger...

Thanks everybody in advance!