Question : Home valuation in decision making process

[Eugene Raghavan]

Hi,

I am in for a single family investment property and have a unique situation. I would appreciate some guidance/help for enabling my decision. I have 2 properties that I am evaluating and the situation is as follows

	Option1
Purchase price	$180K
Age	15 yrs
SQ ft	1650
Rent potential	$2,000
Additional rehab investment	$25k (roof, flooring, exterior porch deck)
Net investment including closing costs	$64K
Pro	Location with better school ratings
Con	Additional out of pocket over option 2 by $10k and rehab unknowns even after inspections

	Option 2
Purchase price	$215k
Age	24 yrs
Rent potential	$2,000
Additional rehab investment	0
Net investment including closing costs	$53k
Pro	Updates done, no rehab work. Lower out of pocket by $10k
Con	Lower school ratings but same ISD though, Location is ok