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 ft2

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 21www.century21.com

Realty Tracwww.realtytrac.com

Google www.google.com