Banks starting to "spruce up" foreclosures?

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So far all of my rehab deals have come from the MLS.


I have an automated email feed from my agent that sends me (REOs, Short Sales, HUD, Auctions).


Over the past couple of weeks I've noticed a bunch of REOs listed for sale have been "spruced up". Some even have new kitchen appliances. They seem to be particularly common with Fannie REOs. 


The past couple of weeks don't constitute a very large sample size, but I must admit I'm a bit concerned. I'm definitely getting priced out of the market for a lot of "standard" MLS foreclosures. 


Is anyone else noticing this problem?


I can't afford high variance at this point since I'm only doing one deal at a time (and I'm relatively new/ still trying to "prove the model"). As such, I've been reluctant to purchase at auction given the added risks. If I had a dozen deals under my belt it wouldn't be as big of an issue. Now I'm  finding myself turning to auctions as the primary source of flips for the future, and I feel like it's too early. 


One possible contingency is to broaden my rapport with local wholesalers. I've recently started contacting them and giving them my information. It seems like this might be a relatively inconsistent solution, though. 

I've also eased my criteria (SFRs in C- neighborhoods, 1 bath, less than 1200 square feet, etc). This also makes me nervous because of the lower profit potential/ smaller pool of potential buyers/ criminal activity etc. 


Anyone have any advice on how to mitigate risks from an auction/safely work in less than ideal neighborhoods/broaden sources of deals?


Thanks very much,
Patrick