Okay, so it's a little rough around the edges but with a bit of a spruce up this one has great potential to increase in value:-
*It's not in a flood area
*It is a 3 bedroom house upstairs - rented at $450/wk
*It has a 2 bedroom flat under - rented at $410/wk
So give her a paint job, take up the floor coverings and a bit of a reno and your return will increase exponentially or live in one and the keep the other one rented.