Yes the government wants the "magic fairy dust" as I call it.I see it with banks as well.Sometimes the bank believes in an appraisal that won't fetch half the value.Since it's a "third party" appraiser they believe it to be most accurate.The problem is appraisers aren't in the field talking daily to investors doing deals like I am.Even if I can convince the bank they tell me they agree with my value and comps it's just that right now they can't take the hit.They can only take small hits over time.The government I am sure sees this the same way.As an investor I wouldn't want to be "in bed" with the government on houses.They have shown not to be good stewards of money or to make thoughtful programs that work in the real world.That leaves you intertwined with the government for years and years which I would equate to a nightmare situation.As far as the SS or REO driven market it depends on your local area.Some areas only had a few foreclosure to begin with and have already recovered.Other areas a foreclosure and short sales can be up to half of all sales still today.The reality is the buyer when looking at a remodeled house versus one needing work will go look at the REO or short sales.Then the buyer will compare in their mind IF they want to do the work to gain sweat equity or just pay for a finished product??

Yeah I had that too.Tenant called off of Craigs list ad.Once they drove by it didn't meet their expectations.They wanted granite and all that stuff for 875 a month when for that area you will have to pay 1,250 to 1,300 to get 2 bed 2 bath like that.Also get tenants transferring from out of state.I tell them if you get down here and take a look and they are still available then I will show you the inside.I also ask when a call comes in where did they hear from us??

I can tell him to go to bed, and he'll go to bed.

It is 4 bed/2 bath house, 1057sq ft and lot is 2667sq ft.

Wow, 2 bed 1 bath is 200K in SM? 

My properties are in Frayser and are all 3 bed 1.5 bath. 

@Quincy CollinsWelcome, take a good look at student housing see below.Have a buddy who filled a 3 family for an out of state owner with students 10 beds she takes $100 a month off the top for each bed.

I agree with everything you wrote, life too short to be bitching all day, there are folks on death bed right now, so I am thankful for my problems and successes I have currently,truly.

Put laminate in the bed rooms and let the tenants buy throw carpets if they wish.

Have to admit it's a bit scary :)I am willing to invest up to $150K.I'd love to hear suggestions as to where I should start and what to aim for.P.S: what's your take on buying a studio or one-bed close to me in San Francisco given that I live here?