If you looked a little harder you might find a better buy in a transitional neighborhood, and do a better ROI or even spend a bit less.

The higher class neighborhoods will start to see a substantial drop and more foreclosures start to hit the market.By the summer we will see commercial real estate drop in a huge way.That sounds pretty grim, but I still think there is money to be made and some super deals out there, just BE CAREFUL.

This is too funny...I just found myself crunching the numbers on a unit in my neighborhood that is almost identical to the one he mentioned.

Houses have been on MLS for 384 days) They are in a decent neighborhood and 4 out of 5 units have been updated.

I consistently get twice as many tenants with my free craigslist ad, paper flyers at the grocery store and $14 sign in the yard than my $500 a month newspaper advertising. 4.

There are 2 - 3 units in our area for under $200k BUT you may not want to invest in those neighborhoods.

Think its possible to buy a house in this neighborhood for that?

The banks dont have the time to fully research your neighborhood and have to rely on whoever they hire to do the BPO.

Andrew, while birdogging or driving the neighborhood is recommended by many investors and wholesalers, it's generally a waste of time and a lot of heartache..Your best bet would be direct mailand a website to find the distressed sellers..also Eric, that's interesting the statement you made regarding that you should never put a prop under contract you couldn't close on.

I look for neighborhoods that are changing or moving up.