REOs and Back to Market Value

[Christine Nieva]

Hi everyone I am looking to purchase my first property as a first time Homebuyer and willing to take advantage of the FHA loan for a 3.5% down. I have excellent credit 740+. An Annapolis MD property built in 2006 is an REO that I found on Redfin. Yes I would be an owner occupant. It's priced at 275k, and well taken care of based on the photos. Meanwhile its next-door neighbor comp is at 350k (a $70k difference) but surprisingly beat up and was not well taken care of being that it was also built in 2006, and even the exact same BA/BR/sqft like the REO. This REO has reduced from $299k, DOM for almost 90 days, now at $275k. So far I haven't found any hidden fixes needed in the Redfin description for this REO to justify why it hasn't sold considering that it's been well taken care of. I am learning my first niche of being a buy & hold investor.

My question is: Can REOs such as this $275k property, if held for 5-10-15 years make a comeback to market value such as its neighboring comps? And then eventually years down the road sell this home for profit?

Thanks friends!! And please feel free to network with me, I love meeting new REIs here!