They are often sold at a discount, but they can come with significant repair needs since they are usually sold as-is.### Due DiligenceBefore buying an REO property, conduct thorough due diligence.

We repair roofs for our properties all of the time.

With the building repairs needed, that lease price does not make a bit of sense.

@Cody M.I would add a Phase I Environmental Site Assessment as a contingency to any offers on properties more susceptible to environmental issues (dry cleaners, gas stations, auto repair garages, etc.)

However, tenants have not been great, basically late on rent and/or leaving repairs that eat all profits.

Maybe ill have better luck trying to ask specifics with the group.On my sheet total project cost is calculated by adding Closing costs + Repairs + Holding Costs + Loan amount + Hard money fees.

They had movers pack-up and store their belongings while all the necessary repairs were made.

Plus the gray area between who's responsible for repairs. 

When someone tells me that "you won't have repairs or cap ex for a while since the seller just renovated it"... well that property is -$300 to $-500 a month from repairs called in by the tenant most months.

My property manager is declining to provide a receipt of the repair that he/she conducted.