The Joy of Buying Short Sales

[Andrew M.]

Just closed on buying my first short sale...a condo in Ontario, CA.  It came on the market at $99k...too high, was lowered to $89k where I first saw it.  I offered $76k and then for some reason the bank came back to my realtor and said "we won't accept anything less than $73.2k"...ok...so I changed my offer to $73.2k and the bank accepted.  :-)

A lesser unit in the same complex just went for $83k full price offer. Prices in Ontario are stable and just coming off of big increases, so to get it for $16k below where I first saw it in this market seems like a steal to me (will rent for about $950/mo. after I put about $6k into it and has a HOA of $275)...so I feel like I'm getting (for California) good cash flow and I'm guessing $10k of instant equity. By far the best deal I've found in California lately (condo is in a good neighborhood near 15 fwy /60 fwy interchange).

I know I have the dreaded "sample size of 1" to work with but am I crazy to think that I should focus on going after short sales and look for unique opportunities in CA to give offers under asking?  Yes it took about 3 months to go from start of first offer to end of close but for me, who cares, I can wait and there aren't really other good opportunities out there (I have a full time job and invest passively). 

Curious what other investors' experience has been with short sales?