help with first purchase numbers PLEASE!!!!

HI all,

Just wondering if someone can check some numbers for me since I am new @ this. 

Have been reading all your posts for a while now and am still a little confused with the differing opinions on the state of the market and whether now is the time to buy. and hold……

 2 options currently-
OPTION 1:-

2 bed circa 1950's WBT house     – easily used as 3bd with minor work.   approx $5k  (Done ourselves –  husband tradie)
Will need paint + carpet inside . say $5k   (Labour ourselves)

Say purchase price $240,000 

Rental return  $330 p/w   

Gross yield =  ????????? 6.6%

Area close to schools, hospital, on major bus routes.  0-1% rental vacancy rate in area.  From all accounts should be easily rented due to location,

OPTION 2:-
Fibro ex -housing commission (privately owned some years now)  3 small  Bedrooms new kitchen etc 
Basically nothing substantial to spend. $1000 incidentals
Large backyard/block  . Quiet street . Private homes. Possible potential to subdivide or knock down  & put 2 units later on.
But  not as close to amenities.  Schools next suburb over, 5-10min walk 2 bus route. Some re-development happening in suburb already .. ie knock down and rebuilds.

Say pruchase price $255
Gross rental  return $300-330

Gross yield = ??????????6.1%

Any ideas on the better option……

Hope someone can help me .
Thanks heaps  griffo14