As long as there are retail sales comps of "good condition" properties occurring in the immediate area of your distressed/REO/short sale subject property, such that your ARV's are real and not made up, then of course you can create equity.Now, if 80% of the sales in that area are distressed/REOs/short sales in the prior 6 mths, then that's another matter, and you need to be cautious about being able to realize forced appreciation.Many retail buyers can't or won't even entertain the idea of buying a distressed property, due to financing issues, lack of funds to renovate the property themselves, hassle factor w/ living in a construction zone for a month, aesthetics, all kinds of reasons.

Thanks, just wondering if I should be cautious?

I know this may sound a little hardlined, but I must admit that I am a bit cautious when I see that Wall Street is going to come in and set everything right in the real estate world.

I am the cautious person in my relationship, and that I want to write a solid plan before we start researching properties to purchase and calling people.

For a single person, I'd be cautious if he had fewer than 10 or more than 90 doors.They all lie about vacancy rates, so ask "how many properties are vacant" and then follow-ups about how typical that is.

I am hopeful but cautious.

REO is not really my specialty so I may be overly cautious here but the risk vs reward here seems a bit out of place...that is just my gut feeling.  

I would be cautious here and not move to fast thinking you are helping the situation.

Be cautious about mentioning money you have available - there's always people wanting to take advantage out there.There's an upcoming BiggerPockets meetup next Tuesday down in Henderson, you may want to come check out and discuss with some of us locals some ideas

If you are new to real estate investing AND you don't have cash...proceed very cautiously with doing anything grand out of state.