2 Properties in Dallas for Comparison

[Meng Khong tong]

Hi All,

I m a total newbie in RE investment. I just saved up enough money for downpayment of my first investment house in North Dallas. Below are the key characteristics.

Investment objective:
I want to rent it out for passive income for the next 6-8 years and sell it off for capital gain around the 10th year.

House A:

Price: $250k

Size: 2024 sqft

Rental potential: $1800 - $2000

3 bedrooms, 2 Bath rooms, 1 flex room (study or office without door)

Plus point: Nice and huge yard with great unblock views, large master bedroom and large master bed room closet, large living room and family room. Fairly Good School zone (Prosper ISD).

Down side: Poor workmanship, cheap appliances and floor tiles with carpet. These are newly built and started selling since Nov/Dec 2019. There are many similar houses in market for rental in the same community.

House B:

Price: $238k

Size: 1564 sqft

Potential Rental: $1700 - $1850

3 bedrooms and 2 bathrooms

Plus point: Good design, House was already upgraded with $25k of designer appliances / sprinklers system and other premium options like Patio etc. Workmanship is great. Yard is fairly large with good view. Wood flooring with carpet. Seems limited house for rental in this community. The developer builds in small batches. Energy efficient design.

Downside: Small master bedroom and small master bed room closet. unpopular school zone (Danton ISD). 

Rental ROI, seems house B is better option. But House A may fetch more money later when i sell since it has close to 500 sqft larger floor space and a better school zone.

Which do you guys advise? Which is easier to rent? They are close to each other. Like 3-4 mins drive. And I only have money for 1 investment property now.

Thanks.