Location vs rental income.

I'm torn between two properties and I'd appreciate some input. The two houses below are in the same postcode (1km apart) but differ in terms of house condition and location. Both are in similar catchment areas for schools, public transport etc.

House A:

620k and requires about 70k of modernisation. Livable but needs eventual wiring and plumbing modernisation but it's in a highly attractive area, mature and settled with a sense of space on the roads, back garden is a 6/10.

House B:

720k, requires no modernisation. In turn key condition and has a full apartment with side door access at the back of the house so it could be rented under the rent a room scheme without any interaction with the renter. Even allowing for the apartment, the back garden is an 8/10. It's a beautiful high spec home but the road is a bit more on top of itself/loads of double parking/isn't as peaceful or green as the other address.

House B is about 200k more than similar houses in the area without an apartment, so I guess you're paying an upfront premium for the rental income it'll generate as well as the condition of the house.

So my question is, do you think having the rental income would compensate for the less desirable surroundings? For reference, the rental income would effectively offset about 55% of the monthly mortgage rate.