If I know realistically that the chances of purchasing listed REO inventory at 50% on the dollar in my area of interest is 0 to slim, why would I not accept this fact and work around it.

Assuming expenses run in the 50% range there will be a small undetermined profit.My guess is after DP, closing costs, interest on mortgage, expenses and the $250 monthly out of pocket there may be a slim profit assuming some degree of appreciation.

I've had some slim ones, but I haven't lost since those first two.

I've decided its a little too high risk for me, after learning that a million of meth was recently busted at the corner sub shop, 4 people getting stabbed in one night in the neighborhood, and the likelihood of selling the home in a buyers market looking slim, it's best to refrain from such deals in my personal opinion.

The lender wants to get rid of the house, but they wnat the highest amount they can get for it.If you are able to prove to the lender by your research that the house is not selling, the conditions in the area are effecting the value, that repair cost are expensive, that the length of time on the marker has been extensive, that the likelihood of them making money on this house or their ability to sell this house is slim to none, and that their BPO is inaccurate and at best skewed...then you have empowered yourself in such a way that they highly consider your offer.

For buyers the tone is that there are good values in the market, but remember value is determined by demand, if you find yourself in a multiple offer your chances of getting the home by offering less than the asking price is slim to none.

I know the picking is slim there.  

Slim.

With relatively slim margins like you are describing, make absolutely sure that you can withstand rate changes that may occur during the term of your bridge loan.

I have more flexibility to bulk up when I have a lot of rehabs going at once and can slim down when I don't.