They both need work. Serious stairs on house 1 can be treacherous in the wintertime, let alone carrying groceries and trash up and down every day. House 2 needs serious paint and carpet, at the least. As always, the quality of tennant you are able to get and keep has a big bearing on whether your rental investment is a success or a money pit. Some tennants' favorite phrase is "Hey, it's a rental". I myself am glad to be out of that game!

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1985 380SE Blue/Blue - 230,000 miles
2012 Subaru Forester 5-speed
2005 Toyota Sienna
2004 Chrysler Sebring convertible
1999 Toyota Tacoma