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My offer was 45k below what they were asking.So basically get out there and start making some offers.... things will start to happen.

We won on our bid for an amount that we think is below FMV for our area (I hope).

This was supposed to be a reply to Prettygirls post below.

My plan is to buy and hold and most of what I find looks like the figures below, which is actually an REO I am going to make an offer on on Monday:3/1 and 984 SFListed for 77,900Estimate Appraisal: 93,500 - 114,000Sold in 2006 for $110,000 - but that was during the boom...Will Offer: 69,000Bank Loan: 80%Down Payment: 20% - best my area offersTaxes: 1693.00Insurance: 1,100Repairs: approx 6,000Will probably rent for about $750 - rents not = to the 1% rule in Ocala.After I figure the taxes, insurance, 5% vacancy rate, 8% of income for maintenance (don't really know how to account for this as I'm a newbie), $210 electricity/water holding costs till rented per year, $200 for advertising to rent it per year, my OE are at 48% of my operating income . 8,400 - 3855 = 4,209.I will have 4,209 left to pay P & I, and I will be negative a couple hundred dollars the first year.

If you see an FSBO wouldn't you negotiate your offer down, knowing the the commission is going to be low.

So, thanks to the falling we're seeing now, house prices in real terms will be lower than they are now.Now, because there are short term fluctuations, the prices might actually be up or down exactly 20 years from now.Nominal prices will likely be higher.

I would network at all of your local REIA meetings (the link below will show you all of the meetings in your area)http://www.biggerpockets.com/real-estate-investment-clubs.htmlLet every investor that you meet know, that you have this database of leads.

if it's anything below 98%-99% I wouldn't take them.

It does not include cash flow, tax deductions (also cash in your pocket), forced appreciation (increased value through captial expenditures & other sources), or even the possibility of buying below the value which you can not do in stocks.