Short sale vs. REO What's better?

[Eddie Ziv]

Common wisdom may argue that REOs are better deals than short sale. The market have been exhausted, the auction didn't produce results and now the bank is with the back to the wall trying to get rid of the property. What plays against the REO buyer usually, is the condition of the property. Another word, more extensive rehab, more money spent.
So, the bottom line question. In general, what is better and more profitable? Short sale deal or REOs?