Then I'll place my low ball offer.

My advice is to go in LOW, both with the monthly rent and the purchase price.

Now if you find a formula that will tell everyone how long or how low a bank will go on a REO then sell it, because you will be richer than bill gates :lol: :D

This is relatively low compared to other islands with a similar level of development where properties can sell for $500 - $750 per square foot.The good news for investors and absentee owners is that the rental income here is relatively high compared to the purchase costs of the property, especially for properties with great views and/or easy access to the beach, which can generate anywhere between US $2500 and US$6000 per month ( depending on the size of the property).

I have rsearched bank REO sites, foreclosure websites etc... have put low ball offers in but no luck so far.I have heard that you should pu in about 15 offers /month and you might find smthg.

I have rsearched bank REO sites, foreclosure websites etc... have put low ball offers in but no luck so far.I have heard that you should pu in about 15 offers /month and you might find smthg.

Here's how I would evaluate this property:Gross rents: $4,800Operating Expenses: $2,400NOI: $2,400Mortgage ($325K, 7%, 30 yr): $2,162Cash flow: $238 or $40 per unit per month, which is too low for me.I agree with dafly that you need to buy at a bigger discount!

Most families receiving this type of assistance stay in the rental for an average of nine years, plus the government sends you a check on the first of every month for full market value rent.† Check your local housing and development authority for opportunities in your area.† Many cities are offering incentives to investors interested in certain neighborhoods so check with your city planner, neighborhood associations, and government agencies in your area to find out what may be available to you.† As with any purchase these days make sure you buy the property at a low enough price that a temporary rent reduction will not eliminate your cash flow.Offer the property for rent for $500 a month more than you actually need and advertise that discounted rent available to qualified renters.† In this case you offer to reduce the rent $500 a month if they agree to take care of any problems with repair costs of $500 or less.

All houses are really at a low point, so it seems like now is the time to buy.

REOs usually come out on the low side of market value for at least 30 days and then drop their price or are a little more flexible to negotiate after that.