I've been investing in RE for well over a year now, and have had 2 properties that I've been relatively succuessful, a SFD property bought as a REO , repaired cheaply and increased equity by 40% and a 6 unit apartment complex that is now cashflowing and has increased by about 400% in equity.We will be finalizing some credit account the comming week to secure enough money to start buying atleast one property per month to add to our portfolio.Our goal is to buy properties in decent neighborhood at no less than 35% ARV , rehab and then lease-option or other type of seller financing/RTO deal.

The market in this neighborhood has tanked over the past year and current retail home prices are around 720K.

There have been a number of sales in the neighborhood within the past few months for similar homes for around $200,000.

They started asking what was owed -- $840K Which was a joke since there are 32 houses for sale in this neighborhood where home values have tanked.

A couple reasons I can think of are -Can not come up with down payment -Can not live in same quality neighborhood and house.

PITI: 900-1000 For owner financing: I can get 1200-1500 a month for this property depending on the neighborhood and get a down of 5,10, 20% (or more!)

We're apprehensive in that we've worked hard to get this house paid off, but at the same time, I don't like the neighborhood and want to move anyway.

For the specific condos I looked at, I ran. http://biggerpockets.com/forums/48/topics/22995-distressed-condos-in-great-neighborhoods

Current goal is to locate pocket neighborhoods in Ohio.

Your best bet may be small neighborhood banks.