Renovating a Foreclosed Property versus Buying Prime Real-estate Team #5

Team Members  Vincent Rodriguez – Team Leader  Jonathan Lee – Organizer  Jimmy Luong – Enforcer / Summarizer  Bryan Vine – Tech.

Objective  To determine which method would result in the most profit. Monthly income Sold at 3 years Sold at 5 years Sold at 30 years  Future Value.

Scenario # 1  Foreclosed Property  Financed w/ accelerated 15 year fixed rate  Second loan to pay for initial repairs  Fixer-upper  Maximize value through minimal improvements  Rent out each room individually

Scenario #2  Prime Real Estate  Financed w/ typical 30 year fixed rate  Rented out to a family

Similarities  4 Bedrooms & 2 Bathrooms  2 Car Garage  Same Neighborhood  1,400-1,700 ft 2

Initial Goals  Take pictures of foreclosed property inside and out.  Obtaining estimates of remodeling the house, including labor and materials from a licensed contractor.  Obtaining an estimated value for renting out the entire house.

Resources  Century  Realty Trac  Google