Meanwhile flipped homes were still purchased at an average discount of 13 percent below market value in 2013, the same average discount as 2012, indicating that investors are finding discounted buying opportunities outside of the public foreclosure process — particularly in those markets with the biggest increases in flipping for the year.”Major metro areas with big increases in home flipping in 2013 compared to 2012 included Virginia Beach (up 141 percent), Jacksonville, Fla., (up 92 percent), Baltimore, Md.

hey BP,I've got two properties I'm looking at, both selling below appraised value, and both cash flow positive within my criteria for the local area.

What are the prospect for jobs locally.Long run real estate and rents are going up via inflation.I only buy substantially below market.

@Edsiaren Ignacio , the 2% rule simply doesn't work in higher end properties unless you buy way below market.

In reality that number could be way above or way below what you really can afford.

OTOH, if your is below that you will get dinged by more than the difference.Have you looked at other houses in the area?

Unless you use a contingency in your contract, like continent upon inspection or estimated rehab costs being below X amount.

Anyway, the properties that I've been eyeing are below $100k purchase price.

We do update if it is extremely old/poor looking but as long as it is average we will just deep clean it and leave it.Vacancy is almost never an issue since the area is highly desired, close to highway, shopping so we typically rent at market rent or sometimes 50$ below if they are willing to sign a multiple year lease.

:) Bill Gulley - FHA loans no longer have the MIP go away even after the property has had the loan paid down below the thresholds you mentioned that are typical in conventional financing.