Couple properties

Got two properties to look at… which looks like a better potential deal?

Both are in the same town.

Both are listed for $270,000.

One is short-sale / pre-foreclosure. It’s a 4 unit, all one bedrooms. Two units are vacant. Rental for 1 bedrooms range from $600 - $900 per month in this town. (this apartment is kinda ugly so it would be closer to $600. ($31,200 annual income).

Property #2 is a house that’s been converted to a 4-plex. It has a mix of 1 bedroom, 2 bedroom, 3 bedroom. It is bank owned and it 100% vacant. Rents would range from $600 to $1100 per unit.

Am I more likey to get a severely discounted property on the short-sale property or on the bank-owned property?

(I know, I know… none of these pencil out by PropertyMgrs calculations unless if I can purchase them for $45,000 which isn’t going to happen).

1st property pluses
-Meant to be a 4 plex

2nd property pluses
-Vacant
-More beds = higher rents

1st property minuses
-1 bed = low rents and higher turn over
-Low cash flow
-Ugly

2nd property minuses
-Not built to be a 4-plex

1/4-1/3 of all tenants I inherit from the seller I end up evicting. That’s why I like vacant properties. I can then do backround checks, employment checks, and call the last two landlords on all tenants. So I like the second property better because it is vacant. I typically don’t care for 4-plexes that were meant to be SFH but were converted. I prefer properties to be what they were built to be. So in that regard the first property is better. In the end the second property is the only property that has a chance of cash flowing, so that would is the better property.