The Best Investment of Property Foreclosures Essay

After spending time analyzing the two foreclosure properties, I was able to come up with some valid and interesting information that allowed me to choose which asset would be the best investment. Although one property seemed to be a better deal than the other, after doing research it was clear that was not the case. Many factors had to be considered such as current and past market trends, cost and location. Working in the REO industry and dealing with foreclosure properties across the United States everyday really helped me come up with my answer. I was able to utilize the knowledge I have obtained through my career to better understand which of the two properties would really be the best investment. I have seen individuals and investors make profits and I was able to learn from them what things they looked at and into before their purchases.Although both properties are at the same price point, I would choose the North Carolina asset. By viewing the photo and description on the listing, I thought this property would not make me any profit at all. But after looking into the property it was clear this property had the most room for profit. It is in a nicer area, than Stockton. The city of Chapel Hill has made a positive name for itself and is one of the most desirable locations in North Carolina with excellent schools and community programs. Stockon does not offer the same positive feedback. The Stockton area does not come highly recommended.

A lot of homes in the Stockton area have negative equity. There are also many foreclosures. With so many houses on the market, the re-sale time would take longer. With more inventory, buyers have many more options. In Chapel Hill, not many listings come up. So when one does, it sells quickl…

…area I would work on is the main bathroom. This is the bathroom all guests use, so it should also look presentable. I would replace the old toilet and put in a granite counter top. Depending on what the current shower/tub looks like, I would replace the tiles or add tiles to make this look more updated.I estimate my total rehab for the Chapel Hill asset to be $20,000. This includes; the painting of the interior and exterior, removing shrubs, upgrading the kitchen and bath, and also the flooring. I have taken into account the cost of labor as well, and it is included in my total. With either property, we will also have a loss of profit due to paying out agent’s commissions. I also took into account the hold time while renovations are being completed. Even with all these expenses on the North Carolina property, once completed I can turn around and double my profit.