You buy only those that you can control the cost

In my area, 70% of REO houses are in good condition and only require cosmetic repairs. You choose from this 70% range. You probably have not looked at enough REO properties, or, you may have focused on good neighborhoods where REO properties are very few. I don't find them in good neighborhoods. I find them in okay neigbhorhoods. The only reason to find REO houses in good neighborhoods is that you intend to live in yourself and you wish for a huge bargain. The price in good neighbhorhoods will be a lot higher even for REOs, bidding may be strong too. But as investor, you don't intend to live into them, thus, cash flow and future appreciation will be your only concern. A house in a okay but lower-income neighborhoods will generally have similar future appreciation percentage as the ones in good neighborhoods, but they offer much lower price and much easier cash flow. And, I find that most lower-income people are 99% hardworking, salary making, rent paying people. You can use the same money to buy 3 houses in a lower-income districts compared to buying only 1 house in a good district. Cash flow will be much better, in the future you will make more money. For example, in our areas, DC exurb have multiple such districts offering hundreds of REO opportunities at very low price. About 70% have no or only cosmetic repairs needed. Rental rate is not bad, for example, I can buy one at 80-90k then rent out at 1000-1300/month.

所有跟帖： 

• Well said, -Wisdom101- ♂ (318 bytes) () 07/11/2008 postreply 08:11:26

• 回复：Well said, -笑xixi- ♀ (81 bytes) () 07/11/2008 postreply 11:37:08

• Thanks alot! -笑xixi- ♀ (407 bytes) () 07/11/2008 postreply 11:35:25

• 回复：You buy only those that you can control the cost -aisat- ♀ (114 bytes) () 07/12/2008 postreply 16:15:01