We saw how to fix it, where to buy materials, permits, security, listing, getting "Section 8" tenants (in some neighborhood) etc etc etc it was a ton of stuff.

After a few weeks hanging around here and driving the various neighborhoods you'll start to understand why.

Every time I'd crunch numbers in either of those places on the cheap, low rent places, the taxes would put me in the negative.So lately I've been looking in KC (other areas of Missouri as well), Albuquerque, and Little Rock.We decided just the other day that it might be best to actually take a road trip through some of the places we're interested in so we can have some pictures of certain neighborhoods to go with the searches.

Get to know the idiosyncrasies of the neighborhood.

Agent charges when you buy are paid by the seller, so don't really affect the price.So, I'd say if you FSBO is, pay some concessions and use conventional financing, you might get away with paying $105K for it and still get about a $15K profit.Are houses actually selling in the neighborhood?

In my own neighborhood several houses are for sale in the upper 300s.

One of my targeted market for SFHs are 3bd/2bath in working class neighborhoods.

We have whole neighborhoods standing empty.

The price range was from $3K up to $25K over the list price of the REO, and all of them were privately owned so some easier negotiating on price would be likely.It's in a "transitioning" neighborhood so once you get outside of a 10 block radius you can find some real "beaters".

We are looking at a particular neighborhood because of schools and amenities, and that is limiting our choices.