This exercise will help you establish which of the two properties best aligns with your long term goals.

Meaning once they get properly underwritten they'll be pressing DTI limits.Those two are not going to be reason the pent up demand gets exercised; if rates drop significantly and quickly it's for a net negative reason and likely job loss so those "pre" qualified and approved are likely on shaky grounds and buyer expectation shifts happen to the one's that are extremely well qualified. 

Mow the lawn, get some exercise. 

This is especially important if you're on the younger side, as those returns can compound significantly over the next few decades.I'm in a small real estate mastermind group, and we all did this exercise with our own portfolios and identified underperforming properties and equity to reposition, and presented it the group for feedback.

However, for the purpose of a healthy and helpful discussion, I invite you to the the do the following exercise to get the facts first:1.

My opinion (although I don't think your making a bad decision by any means) would be buying gently used for cash private party.

The tenant-buyer has time to fix their credit and save more money for a down payment during the option period, then exercises their option - fulfilling their desire for home ownership.

My wife and I do this exercise every year.

Plus it's a great exercise to ensure you understand each step of the deal, and if there's anything you're missing--something new to learn as well!

Hope this exercise illustrates the fact the BRRRR and cash flow are not always indicators of success and far less time could have been invested to achieve a more favorable result by purchasing in Market A at the start.