Great question @Lorraine Hadden,You should always compare both side by side to see the advantages /disadvantages to each.

If you do something that is too high end or bold compared to what is available in the neighborhood, the exit could be very difficult 

My cost wont necessarily be the same or comparable as I GC my own projects and have trade skills.

When I say i've never had this issue, I mean- Even in the D class neighborhoods i've owned properties in, i've never dealt with vacant apartments for this amount of time.If you're comparing the 40 unit building next door to mine with security, it's sort of like comparing apples to oranges.

You have to compare your expenses with each management style and find the option that works best for you.

I am going to continue to analyze the market until I am absolutely ready to buy with ample reserves and more specific analysis on comparable properties.

Cleveland, Baltimore, Toledo, Indy etc....You will see net population decreases in most of these areas but these are the areas where the prices are the lowest in the USA and come with rents that are very high when compared to the sales price.

And not to mention no stock matches the dividend rate one can get in real estate with such low risk/volatility. 20yrs ownership, oh-yeah, cash-flow on renting it would be HUGE now so it's easily comparable to a 20%+ monthly dividend, if not more.

any suggestions on how I should compare these 2 options?

Kathy, check out Anchor Loans as a comparable.