Most of all, start getting the work out that you want (not only REO but) any house that you can purchase at a discount, and start writing offers.

I can give money down and work out terms.

Not sure how that would work out because I may have to do a 20% down.  

I buy for the appreciation the cash flow is a nice bonus.See this thread where I quote @Christian Hutchinson complaining that the house he bought in a nice suburb of Detroit only went up 76% in 5 years because properties he had looked at INSIDE Detroit had gone up 600%.It is routine to sell properties bought 3 years ago for 10X what I paid!

How did it work out for you?  

Good for you for making those offers despite the fact that they didn't work out.

I'm fairly new too.How did your first duplex with you living in it work out? 

Of course, the landlord can contract the work out to the student, but that's on a separate contract.I've read stories of tenants that negotiated for lower rent in exchange for snow/lawn duties, then called up the landlord and demanded that they do it.

Hello,I have been doing the landlord routine for the last 6 years.

I also get annoyed with the rehab loans however they can work out really well.