CPMCebuPropertyManREAL REVIEWS. REAL RETURNS.
FORECLOSURE INVESTMENT TOOLS

Is the discount
worth the costs?

Compare the price gap with repairs, unresolved issues and the time needed to make a property usable. Then test rental and resale scenarios.

Browse bank-owned properties

All figures are your assumptions. Enter 0 only when a cost is known not to apply. Blank costs remain unknown and prevent a complete calculation.

1 · Price and condition

Compare equivalent condition and location, using evidence rather than the bank’s original price. An occupied property may need legal work and a longer delay; costs below are manual estimates.

2 · Acquisition and unresolved issues

Enter costs you will actually bear under the sale contract. Avoid counting the same fee twice. Settlement costs require lawful agreement; no possession outcome is guaranteed.

3 · Delay and reserve

Use one combined delay to avoid double-counting overlapping repairs and possession periods. Holding costs can include dues, security, insurance and property tax. Reserve is funding held aside, not a spent cost. Loan approval and timing need separate confirmation.

4 · Rental scenario

Operating expenses include management, maintenance, dues, insurance and property tax; exclude financing and income tax. First-year rent accounts for the acquisition delay. Stabilized yield assumes the property is already usable.

5 · Resale scenario

Enter all applicable selling costs and taxes from professional quotations. Results use the delay in section 3; add further holding costs if your marketing period is longer.

A financial scenario cannot clear a legal risk.A discount does not establish ownership, lawful possession, access or a usable building. Unresolved issues may make costs and timing unknowable. Get property-specific legal, engineering, tax and financing advice before committing.

Read the guide to total foreclosure investment costs →

Calculation methods and source guidance

Headline discount = comparable usable market value − purchase price. All-in cost = purchase + buyer-paid acquisition and remediation costs + holding costs × delay + pre-use financing costs. Net savings = comparable value − all-in cost. Funding budget = all-in cost + unspent reserve; estimated own cash = funding budget − available loan proceeds.

Downside adds your extra remediation, delay and financing allowances. These allowances are user estimates, not a worst-case limit. Opportunity cost and appreciation are not assumed.

Stabilized collected rent = monthly rent × (12 − vacancy months). NOI = collected rent − annual operating expenses. Net operating yield = NOI ÷ all-in cost, before debt service and income tax. First-year collected rent = monthly rent × max(0, 12 − delay) × (1 − vacancy ÷ 12). First-year cash flow subtracts the full annual operating budget and debt service conservatively; holding costs already in all-in cost must not also appear in the operating budget for the same period.

Resale profit = resale price − selling costs/taxes − all-in cost. Maximum bid = resale price − selling costs/taxes − non-purchase costs − target profit, holding all other inputs fixed. If fees depend on price, recompute them at the proposed bid.

Bank terms can allocate condition and possession risks to buyers. Read the applicable sale terms: BPI Buena Mano real-estate terms. This tool does not fetch rates, appraisals, quotations or bank inventory.