Knowing that, most realtors list the property below market value trying to quickly get an offer to at least get something in front of the bank and get the ball rolling.

But appraisal comes in below the contract price.

Based on my pay/allowance calculations, I want to keep my purchase price below $215,000, to leave room in my budget for renovations/repairs/taxes/unforeseen expenses, and will base my final purchase price on comparable rental properties in the area.After 3 years, I would classify the property as an investment property, and hold under an LLC - relevant laws permitting, I would be my own landlord.

I always go into the home at least once a quarter to let them know that I am an active landlord and to also check for real damage, change HVAC filters (Because tenants rarely do and it causes a huge bill) and water damage / prevention (Caulking).

So if you an I tie for the lowest bid, and you have one bid and I have 2 bids, then I have more chances to be picked the winner.Look at the bidding results below.

When you have 20% of your own cash invested, it's a little tougher for you to walk away.Remember, banks wants consistent payments, not properties (even if the properties are below market value).

Jon,The typical thought is below $100.

The commissions on these bottom of the barrel properties will be low as it is, and the way it will end up getting split will not get any agents jumping for joy.

Should that not happen, then the trend that people have noticed - a decline in REO inventory - will likely continue.One other thing that could affect REO inventory that hasn't been mentioned much is the willingness of the lender to discount the amount being asked at the foreclosure auction (sheriff or trustee sale) below the debt owed.

I was thinking if she could get a 20-30 year term then her payments would be low enough.