Choosing hostel location

Currently in the process of planning our hostel in an up and coming yet established surf destination. Problem is we're having a little trouble picking our property! Property 1 is currently running as a b&b/hostel is in walking distance to surf, restaurants, markets and shopping. It has pretty good bones and a fabulous landscaped lot, but is in need of extensive remodeling and of course is priced much higher because of it's location. Property 2 has awesome ocean views, is located at the next beach up about a 6 minute drive to main town and the surf beach and is a fresh lot meaning we'll have to build from scratch. There are a few restaurants great nearby, it's a 9 minute walk to the non-surf beach and a 7 minute walk to the river we're people paddle board. Our plan with this lot is to offer a shuttle service via extended seat golf cart, provide moped and dirt bike rentals at discounted rates than the competitors in town in order to make up for our location. Not to mention the lot is priced about 20% less than the properties 6 minutes down the road. Any advice would be greatly appreciated!