The worst of them refuse to make repairs to 100 year-old buildings, creating a slum lord problem and giving all of us a bad name in the eye of the public.

His roof ‘inspection’ was done with binoculars and he missed almost a 5k repair that was fairly urgent—so you may not want to use that co. either.

Your real life returns will be slashed due to - higher vacancy rates, high maintenance and repair costs, non payment of rent, eviction filings.Here are some good cardinal rules I follow:1.

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

maybe some light repairs after the tenant moves in...so your first few years after a purchase are typically stabilization, and you investing your money into the property.

We repair roofs for our properties all of the time.

Concessions: Ask sellers to cover closing costs, repairs, or provide price reductions.

@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.)

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

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.