Hello! Hoping to get some advice on which property I should place a bid on. Both are in the same town, about 40 minutes from my home.
Property 1: listed at $499,900. 6 units, all 1 bedroom, 1 bathroom. Extremely well taken care of. All appliances/cabinets/bathrooms are original (1960s) but functional and look spotless. Each unit has its own small hot water heater. Located on a busy street near a couple other multi units. NOI according to owner is $37,788. Unclear why owner is selling.
Property 2: listed at $604,000. 5 or 6 units. 2 1 bedrooms, 2 2 bedrooms, and the top floor was used as a 4 bedroom but can be easily converted back into 2 2 bedrooms. The previous owner lived on the top floor for 30 years and simply opened the doors between the two apartments to make it into 1 large unit (with 2 kitchens). Also extremely well cared for. Some updates done. Also has a 2 car garage that the owner was not renting out. Located in a nice single family home neighborhood. NOI $36,890 according to previous owner. Owner is 80 years old and moved to Florida to retire.
Do I go for property 1, which is $100,000 less and currently makes $1,000 more each year, but has less earning potential long term (since it's all 1 bedrooms) or property 2, which is more expensive, currently has 2 empty units (that the owner moved out of), but I think has higher earning potential?
