Multiple distressed REO's with no retail comps for last 6 months...advice please.

[Greg Robinson]

Hi,

I have read both of J's books and had a question. I am a first time investor and am looking to make a cash offer on an REO. After purchasing, I plan to refinance and I am a bit concerned because there have been a lot of REO purchases of distressed homes in the neighborhood and aren't really any retail comps from the last 6 months that justify the asking price + the 10K in improvements I will need to do. I plan to rent the house out for a few years and not flip it immediately.

Will appraisers typically use the REO comps in the same neighborhood when appraising my fixed up house or will they look to other areas?

Thanks in advance for the advice!