REO Fever is a blog that delves into the vast array of REO ("Real Estate Owned", meaning bank foreclosure) properties for sale around the US.
Current REO properties in every corner of the country are featured on this blog, updated regularly...
For the first time in several years, becoming a homeowner has become affordable to low and moderate income households again in many parts of the Bay Area. Bay Point, at the end of the BART line, has seen a surge of foreclosures, offering many great deals to buyers. This 2 bedroom condo in the Westwood Village complex in Bay Point is listed for $84,900. The foreclosee paid $225,000 for it a few years ago (1/3/2005), and Zillow.com estimates its current value to be $187,500 --- well over twice its current listing price.
A property like this would be good for either an owner-occupant or an investor. For an owner-occupant who works in San Francisco, it is an easy commute – this condo, in the Westwood Village complex, is walking distance to the Pittsburg-Bay Point BART station, and with a total monthly payment of under $1,000 per month, including HOA, this is much cheaper than rent for a decent 2-bedroom unit anywhere in the Bay Area. Alternately, with very little cleaning and cosmetic updating, this unit could be ready to rent for $1,200 to $1,400 per month, delivering good cash flow for an investor.
The basics... Address: 8 Lancaster Circle, Unit 220, Bay Point, CA 94565 Current Listing Price: $84,900 PREVIOUS Sale Price: $225,000 (1/3/2005) Size: 2 Bedrooms, 1 Bathroom; 806 square feet
Here’s a bungalow in a nice, established area on the north side of Durham listed for $87,900. The foreclosee paid $115,000 for this house a few years ago (3/2/2004), and Zillow.com now estimates the value of this house to be $136,500.
This house is on a good-sized lot with mature landscaping, and appears to need very little work prior to occupancy. With some basic cosmetic updating, this place will be ready for an owner-occupant or a tenant. A house like this could rent for about $1,000 per month, so it is a possibility for an investor looking for a long-term investment opportunity in the Raleigh – Durham area.
The basics... Address: 2608 Banner Street, Durham, NC 27704 Current Listing Price: $87,900 PREVIOUS Sale Price: $115,000 (3/2/2004) Size: 3 Bedrooms, 1 Bathroom; 1,317 square feet Lot: .21 acres
This condo in Boston’s historic Beacon Hill is now listed for $793,900. This is a prestigious address in a 3-unit condo building, and it is convenient to all Boston has to offer. The previous owner of this REO paid $1,270,000 just a year and a half ago (3/29/2007), and Zillow.com now estimates its value to be $1,144,500.
A unit like this would rent for $4,000 to $5,000 per month, so it would not be a good candidate for an investor seeking rental income. For an owner-occupant, however, it could be a great opportunity to buy in a demand location while the market is still favoring buyers. Though the unit appears to be in good condition currently, it is a bit dated and lacking that certain top-quality feeling one comes to expect in a high-end property. Tons of potential with this one... with some thoughtful design and renovation, this place could be a really incredible city dwelling.
The basics... Address: 32 Temple Street, Unit 3, Boston, MA 02114 Current Listing Price: $793,900 PREVIOUS Sale Price: $1,270,000 (3/29/2007) Size: 3 Bedrooms, 1.5 Bathrooms; 1,500 square feet
Here’s a sold old colonial revival on the south side of Akron, the heart of the rust belt, listed for just $4,900. This house last sold for $72,000 about six years ago (6/18/2002), and Zillow.com estimates that it is currently worth $79,000.
This house does need some work to make it ready for occupancy, but it still seems to be quite a steal at this price. A complete rehab (probably costing about $15,000) could turn this house into a great rental property. This property could likely bring in $600+ per month, delivering fantastic cash flow for an investor.
The basics... Address: 1356 Marcy Street, Akron, OH 44301 Current Listing Price: $4,900 PREVIOUS Sale Price: $72,000 (6/18/2002) Size: 3 Bedrooms, 2 Bathrooms; 1,264 square feet Lot: .11 acres
Lake Elsinore, near Riverside in the Inland Empire (east of Los Angeles), is now experiencing quite a bout of REO fever. Here’s a spacious 4-bedroom Spanish Colonial revival in the Tuscany Hills neighborhood listed for $244,900. This is a high-end development for the area, and is still a pretty good place to live, if you don’t mind the occasional squatting family of bobcats (http://latimesblogs.latimes.com/laland/2008/09/bobcats-on-a-ba.html). The previous owner paid $360,000 for this house about five years ago (7/2/2003). Amazingly, this house could have likely sold for close to $600,000 at the real estate peak in 2006. Zillow.com now estimates that this REO is worth $284,500.
This house appears to be ready for occupancy in its current condition. Although a newer house like this in an upscale subdivision usually would not work as a rental property, this one seems to be an exception. Tuscany Hills houses of this size are renting for $1,700 to $2,000 per month, which could actually make this REO a possibility for an investor. It could also be a great buy for an owner-occupant looking for a large house in the area. The only concern is that prices may very well fall further in this area, as Alt-A mortgages begin to reset in the coming year, likely resulting in even more foreclosures in middle-class areas like this.
The basics... Address: 21 Villa Roma, Lake Elsinore, CA 92532 Current Listing Price: $244,900 PREVIOUS Sale Price: $360,000 (7/2/2003) Size: 4 Bedrooms, 3 Bathrooms; 2,589 square feet Lot: .13 acres
Here’s a cute bungalow in Oak Park, a high-demand suburb of Chicago, listed for $159,900. The foreclosee paid $301,000 a few years ago (1/1/2005), and Zillow.com estimates that this house is currently worth $268,500, well over $100,000 more than its current listing price.
This house just needs some minor cosmetic work to make it ready for occupancy. As a rental property, this house could bring in $1,200 to $1,400 per month, so it could be a potential winner for an investor. It could also be a great house for an owner-occupant. The amount of cosmetic work and renovating to be done could be as little as a couple thousand or as much as $10,000 to $20,000, if a new kitchen and other amenities are desired. The house is habitable as-is, so minimal work needs to be done to bring it back into full service.
The basics... Address: 1015 South Cuyler Avenue, Oak Park, IL 60304 Current Listing Price: $159,900 PREVIOUS Sale Price: $301,000 (1/11/2005) Size: 2 Bedrooms, 1 Bathroom; 792 square feet Lot: .09 acres
East Palo Alto, on the San Francisco Peninsula, has been hit with an extra-hard case of REO fever lately. Here is a cute, renovated ranch listed for $244,900. The previous owner of this house paid $600,000 for it about three years ago (8/12/2005), and Zillow.com estimates its current value at $469,000.
This house is in great shape, and will pretty much be ready to roll with just a basic cleaning. A house like this could rent for about $2,000 per month, which means it could potentially work as an investment property or for an owner-occupant. Property values are very likely to stabilize and recover in this area over the next few years, so the strategy to buy-and-hold could lead to some serious gain if you are willing to stick it out.
The basics... Address: 2345 Oakwood Drive, East Palo Alto, CA 94303 Current Listing Price: $244,900 PREVIOUS Sale Price: $600,000 (8/12/2005) Size: 2 Bedrooms, 1 Bathroom; 820 square feet Lot: .10 acres
For the first time in several years, becoming a homeowner has become affordable to low and moderate income households again in many parts of the Bay Area. Bay Point, at the end of the BART line, has seen a surge of foreclosures, offering many great deals to buyers. This 2 bedroom condo in the Westwood Village complex in Bay Point is listed for $84,900. The foreclosee paid $225,000 for it a few years ago (1/3/2005), and Zillow.com estimates its current value to be $187,500 --- well over twice its current listing price.
