Flipping a Property in a REO Area

[Hector Granado]

I'm considering buying a property in an area of town that is getting hit by new foreclosure listings. Should I be concerned in my After Repair Value, even if I still see remodeled homes being sold as well?

[Gregory Childs]

In my experience it does impact your ARV. The important aspect is what the take-out lender's appraiser will use for comps.

If the area has some active "nice" homes for sale, you should be OK; but if the only properties moving are the REO's it will definately impact your ARV.

I would assume you are going to have to compete with the REO's and price your offer accordingly - then if the flip sides happens you'll be pleasantly suprised and rewarded.

Set yourself up for the worst case and then everything else is a bonus.

TTFN,
Greg