REO buying strategy

[Tommy B.]

Are REO prices negotiable or do they typically represent a good deal to begin with?

According to Zillow, many of the REO properties in my area are listed 20-30% below market. If I can get one 30% below market and rehab it with little enough to keep it @ 20% below market then it will most likely be profitable assuming the rental rates support it, right? It seems the competition to get these houses is enough for the banks to get what they want for them.