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This typical ranch in Stockton, the foreclosure capital of the United States, is listed for just $114,000. Its peak value was $334,000 in 2006, according to Zillow.com; they estimate its current value to have dropped all the way to $146,000. The previous owner of this house paid $225,000 for it about four years ago (9/10/2004).
Though REO fever is really spreading in this neighborhood in southeastern Stockton, there is strong rental demand as droves of homeowners who bit off more than they could chew are forced back to tenant status. A 4-bedroom house like this could be rented for $1,100 to $1,400 per month, delivering positive cash flow for an investor. Though this property will need about $5,000 to $10,000 of work to get it ready for a new occupant, it seems like a worthwhile opportunity for an investor in the Central Valley.
The basics...
Address: 1936 Granada Drive, Stockton, CA 95206
Current Listing Price: $114,000
PREVIOUS Sale Price: $225,000 (9/10/2004)
Size: 4 Bedrooms, 2 Bathrooms; 1,216 square feet
Lot: .12 acres
http://www.realtor.com/realestate/stockton-ca-95206-1102048313/
This cute little house in Grosse Pointe Woods, a charming suburb of Detroit, is listed for $52,900. Its previous owner had the property for several years, paying $99,000 for it about seven years ago (9/25/2001). Zillow.com estimates that this house is now worth $113,500.
This house is in good condition and is in a great neighborhood & school district, so it could be a good buy for an owner-occupant or an investor looking for cash flow in a stable part of the Detroit metro area. This house would easily rent for $800 to $1,000 per month, well under the cost of owning a property like this. If you’re a rust belt REO shopper, check out this deal.
The basics...
Address: 2197 Roslyn Road, Grosse Pointe Woods, MI 48236
Current Listing Price: $52,900
PREVIOUS Sale Price: $99,000 (9/25/2001)
Size: 2 Bedrooms, 1 Bathroom; 775 square feet
Lot: .09 acres
http://www.realtor.com/realestate/grosse+pointe+woods-mi-48236-1098302851/
This rambling 1960s ranch in the Rocky Point area of the south side of Tampa is now listed for $114,900. The foreclosee here paid $200,000 about two and a half years ago (1/13/2006), and Zillow.com estimates that the current value of this house is $169,500.
Though this house is convenient to the beach, golf course, and freeways, it is important to note that it’s pretty close to the airport (could be good or bad depending on the owner or occupant’s circumstances). With some minor sprucing, this REO could be a nice starter home for an owner-occupant or it could make a decent rental property for an investor. A house like this could likely rent for $1,100 to $1,400 per month, paying for itself and even delivering a little positive cash flow.
The basics...
Address: 4501 Picadilly Street, Tampa, FL 33634
Current Listing Price: $114,900
PREVIOUS Sale Price: $200,000 (1/13/2006)
Size: 3 Bedrooms, 2 Bathrooms; 1,256 square feet
Lot: .17 acres
http://www.realtor.com/realestate/tampa-fl-33634-1100540823/
This basic 1950s ranch in East Saint Louis is listed for $24,900. Its previous owner paid $60,000 for it less than two years ago (1/31/2007), and Zillow.com now estimates that this REO is worth $74,000.
East Saint Louis certainly has its share of problems, but it could be a great place for a beginning investor to get into residential rental properties. This low-maintenance brick house is in good condition overall, and with a couple thousand dollars worth of paint, carpeting, and minor updating, it will be ready to rent. A 2-bedroom single house like this could rent for $500 to $600 per month, easily delivering some decent cash flow to an investor. Section 8 could be a good way to rent this house, with the government guaranteeing most of the monthly income cash flow. If you’re looking to begin investing in the St. Louis area, check out this property.
The basics...
Address: 20 Godier Drive, East Saint Louis, IL 62203
Current Listing Price: $24,900
PREVIOUS Sale Price: $60,000 (1/31/2007)
Size: 2 Bedrooms, 1 Bathroom; 835 square feet
Lot: .20 acres
http://www.realtor.com/realestate/east+saint+louis-il-62203-1102289891/ 
REO fever is taking Compton, in the Los Angeles area, by storm these days. This cute 1920s Compton bungalow is listed for $159,900, well under half of its $353,000 sale price of not quite two years ago (11/7/2006). Zillow.com estimates the current value of this house to be $296,000.
This house needs some minor renovation and cosmetic updating, but after about $10,000 of work, this place will really shine. It is located in a clean and quiet part of Compton, and would be a good place for an owner-occupant. It could also be a potential buy for an investor, as it could rent for $1,300 to $1,500 per month. If you’re looking for an entry-level house to occupy or an investment property in the LA area, check out this REO.
The basics...
Address: 718 West Palmer Street, Compton, CA 90220
Current Listing Price: $159,900
PREVIOUS Sale Price: $353,000 (11/7/2006)
Size: 2 Bedrooms, 1 Bathroom; 1,023 square feet
Lot: .13 acres
http://www.realtor.com/realestate/compton-ca-90220-1101989358/
This charming old colonial revival in Bloomfield, a very diverse old New England town near Hartford, has a lot of potential and is listed for $229,900. It was built in 1875, and is situated on a large lot, nearly an acre in size. Its previous owner paid $345,000 for it about two years ago (6/13/2006), and Zillow.com estimates that it is now worth $292,000.
A house like this could be a boon for a preservationist. With some time and dedication, the great 19th century charm could be brought back to full force in this house, and the huge yard offers tremendous landscaping opportunities. In its current state, this house could likely be rented for $1,500 to $2,000 per month, making it a possibility for either an investor or an owner-occupant. Totally renovated and restored, however, it could probably command a much higher rent. If you’re into old New England houses, check out this REO in Bloomfield.
The basics...
Address: 67 Filley Street, Bloomfield, CT 06002
Current Listing Price: $229,900
PREVIOUS Sale Price: $345,000 (6/13/2006)
Size: 3 Bedrooms, 3 Bathrooms; 2,114 square feet
Lot: .90 acres
http://www.realtor.com/realestate/bloomfield-ct-06002-1102157922/
This 5-year old high-rise luxury condo in Miami, where REO fever has hit strong, is now listed for just $129,900 --- more than 60% lower than the price the foreclosee paid just two years ago (7/13/2006). Zillow.com estimates that this unit is currently worth $309,500.
This REO, in the amenity-laden Blue Lagoon Condominiums, could be rented for $1,100 to $1,200 per month, so it could be a good opportunity for an investor who is seeking long-term gain but may be willing to deal with no cash flow or slightly negative cash flow for a while. Alternately, it could be a great opportunity for a first-time buyer to get into a wonderful 1-bedroom condo in a great building while the getting is good – this price is lower than what a developer could sell a new unit of this size and quality for nowadays.
The basics...
Address: 5077 NW 7th Street, Unit 405, Miami, FL 33126
Current Listing Price: $129,900
PREVIOUS Sale Price: $330,000 (7/13/2006)
Size: 1 Bedroom, 1 Bathroom; 685 square feet
http://www.realtor.com/realestate/miami-fl-33126-1101144764/
This 11-year old condo in Henderson, a suburb of Las Vegas, is listed for $144,900. Its previous owner paid $212,500 for it over two years ago (4/11/2006), and Zillow.com estimates its current value at $201,500.
Although the Las Vegas market has been hit hard with REO fever, this condo may be worth a look. It appears to be in good shape and ready for occupancy. A unit like this one in the Green Valley South development could be rented for about $1,300, so it could be a potential winner for an investor. Alternately, it could be a great maintenance-free home for an owner occupant looking for a decent complex with amenities.
The basics...
Address: 75 North Valle Verde Drive, Unit 1223, Henderson, NV 89074
Current Listing Price: $144,900
PREVIOUS Sale Price: $212,500 (4/11/2006)
Size: 2 Bedrooms, 2 Bathrooms; 1,104 square feet
http://www.realtor.com/realestate/henderson-nv-89074-1101988514/
This cozy stucco ranch in San Leandro, a tidy suburb just south of Oakland, is listed for $219,900. Just over a year ago, the foreclosee paid $441,000 for this house, more than twice its current price tag (6/26/2007). Zillow.com estimates that this house is now worth $358,000.
This house appears to be in a good shape, and would probably only need very minor cleaning and cosmetic touch-up to be ready for occupancy. A single house like this could rent for $1,400 to $1,800 per month, which might make this property a possibility for an investor looking for a rental property or an owner-occupant looking to buy a house with a lower payment than rent for a comparable place. This REO is worth a look if you’re looking in the East Bay.
The basics...
Address: 16385 Gordon Way, San Leandro, CA 94578
Current Listing Price: $219,900
PREVIOUS Sale Price: $441,000 (6/26/2007)
Size: 2 Bedrooms, 1 Bathroom; 778 square feet
Lot: .09 acres
http://www.realtor.com/realestate/san+leandro-ca-94578-1101363577/
This classic early 20th century duplex in Lakewood, a stable inner-ring suburb just west of Cleveland, is listed for $57,900 --- about $100,000 lower than its Zillow.com estimated value of $158,800. The previous owner of this property paid $145,000 for it several years ago (12/31/2001).
This duplex is in a well-maintained part of Lakewood where there is strong demand for rental units. With some basic repair work and cosmetic updating ($10,000, give or take), both of these units could be ready for occupancy. Each unit of this house could be rented for $750 to $1,000 per month, which makes it ideal for either an investor looking for good cash flow or an owner-occupant who wants to live in a good area and let his or her tenants fully foot the bill. A deal-seeker in the Cleveland area will not want to miss this property.
The basics...
Address: 1203 Marlowe Avenue, Lakewood, OH 44107
Current Listing Price: $57,900
PREVIOUS Sale Price: $145,000 (12/31/2001)
Size: 6 Bedrooms, 2 Bathrooms; 2,728 square feet (total for 2 units)
Lot: .13 acres
http://www.realtor.com/realestate/lakewood-oh-44107-1098931709/
This four-year-old ranch in College Park, a suburb of Atlanta, is listed for $92,000. Its previous owner paid $145,000 for this house about two years ago (6/8/2006), and Zillow.com now estimates that it is worth $122,500.
With about $5,000 to $10,000 of minor work (carpeting, paint, and a few repairs), this house will be ready for a new owner-occupant or tenant. This 3-bedroom house in the Sandpipers Cove subdivision could bring in about $1,100 per month in rent, making it a viable possibility for an investor looking for rental property. This is a great time to grab a relatively new property for less than the actual cost of construction, so check out this REO if you’re looking in the Atlanta area.
The basics...
Address: 5394 Sand Bar Lane, College Park, GA 30349
Current Listing Price: $92,000
PREVIOUS Sale Price: $145,000 (6/8/2006)
Size: 3 Bedrooms, 2 Bathrooms; 1,361 square feet
Lot: .22 acres
http://www.realtor.com/realestate/college+park-ga-30349-1101906733/
Situated in the Hollywood Hills, this recently updated con-temporary house offers an amazing deal at its current listing price of $990,900. Its previous owner paid $1,500,000 not quite two years ago (11/30/2006), and many houses in the neighborhood are worth several million more than this. Zillow.com estimates that this house is now worth $1,864,500.
At less than $400 per square foot, this house is extremely affordable for this high profile location (Houses in this area average over $800 per square foot.). A house like this can be rented for $4,000 to $5,000 per month, so it is not a good candidate for an investor looking for rental property. For an owner-occupant, however, it is worth a look. Although it is certainly not the highest-end construction in the area, the breathtaking views, multiple decks/balconies, and the renovated kitchen make this a fantastic opportunity for someone who likes to entertain and wants the status of the Sunset Strip.
The basics...
Address: 8595 Cole Crest Drive, Los Angeles, CA 90046
Current Listing Price: $990,900
PREVIOUS Sale Price: $1,500,000 (11/30/2006)
Size: 3 Bedrooms, 2.5 Bathrooms; 2,499 square feet
Lot: .13 acres
http://www.realtor.com/realestate/los+angeles-ca-90046-1098464820/
This classic brick rowhouse in the capital of the United States is currently listed for $468,900. It has been on the market for over seven months, and has seen a long series of price cuts. Its location in the Old City neighborhood, near the edge of Capitol Hill and Kingman Park makes it a convenient residential location in close proximity to shops and restaurants, and the area has been going substantial gentrification in recent years. The foreclosee paid $695,000 for this property less than two years ago (12/15/2006). Zillow.com estimates its current value to be $660,000.
This house could likely be leased for $3,000 to $4,000 per month, so it would probably not be a good opportunity for an investor looking for rental property. This house could be a great opportunity for an owner-occupant seeking a spacious renovated house in an up-and-coming area, however. This REO is in good condition overall and will need little more than paint and a few minor updates before occupancy. The fact that it has been on the market for so long will probably scare away many buyers… it probably was over-priced to begin with, but now that its listing price is so much lower, it is worth a look.
The basics...
Address: 1439 G Street NE, Washington, DC 20002
Current Listing Price: $468,900
PREVIOUS Sale Price: $695,000 (12/15/2006)
Size: 3 Bedrooms, 3 Bathrooms; 1,414 square feet
Lot: .02 acres
http://www.realtor.com/realestate/washington-dc-20002-1093786811/
This spacious 1950s Scottsdale ranch is listed for $205,900. Its previous owner paid $265,000 less than two years ago (10/6/2006), and Zillow.com estimates that its current value is $222,000.
Although it is a bit dated and could stand some cosmetic improvements, this house could be occupied in its current condition. A 4-bedroom house like this could rent for $1,200 to $1,500 per month, which would allow an investor to cover his or her expenses, and possibly even generate a little positive cash flow. This REO could also be a good chance for an owner-occupant to snag a house with a monthly outlay that is less than the rent for a comparable house. Because it does not need any immediate renovation work, this house offers a good opportunity for someone who wants to improve, update, and renovate piecemeal as budgets allow over time.
The basics...
Address: 2617 N 71st Place, Scottsdale, AZ 85257
Current Listing Price: $205,900
PREVIOUS Sale Price: $265,000 (10/6/2006)
Size: 4 Bedrooms, 2 Bathrooms; 1,573 square feet
Lot: .14 acres
http://www.realtor.com/realestate/scottsdale-az-85257-1102127963/
At the ripe old age of two years, this Orlando townhouse is listed for $149,900. This REO is located in the Timber Pointe development in Avalon Park, is well maintained and clean, and has decent amenities. The original owner of this new townhouse paid $235,100 less than two years ago (11/2/2006), and Zillow.com estimates that it is currently worth $202,000.
A townhouse like this could be rented for about $1,200 per month, which would not be sufficient to provide positive cash flow for an investor (taking mortgage payments, taxes, and HOA into account). This unit could, however, be a nice place for an owner-occupant seeking a deal on a newer home. Having been so over-built in the past few years, this is one of many deals that can now be had. In the long run, a purchase like this could be a good investment; as the population of central Florida continues to grow, so will demand for housing, and therefore property values, over coming decades.
The basics...
Address: 16460 Cedar Crest Drive, Orlando, FL 32828
Current Listing Price: $149,900
PREVIOUS Sale Price: $235,100 (11/2/2006)
Size: 3 Bedrooms, 2.5 Bathrooms; 1,472 square feet
http://www.realtor.com/realestate/orlando-fl-32828-1101293648/
Although REO fever has not over-whelmed Marin County to the same extent it has over-whelmed other parts of the Bay Area, there are certainly some REO deals to be had. This 2-bedroom condo in San Rafael is listed for $150,000. Its previous owner paid $324,000 a few years ago (2/12/2004), and Zillow.com now estimates its value at $295,000.
This property offers a good opportunity for a first-time buyer in the Bay Area. Including the mortgage payment, property taxes, $293 monthly HOA fee, and tax benefits, the cost of living in this condo would be comparable to renting a similar apartment in the neighborhood. As population growth in the Bay Area continues, property values will continue to rise, making this REO a good potential long-term financial investment.
The basics...
Address: 3665 Kerner Boulevard Unit A, San Rafael, CA 94901
Current Listing Price: $150,000
PREVIOUS Sale Price: $324,000 (2/12/2004)
Size: 2 Bedrooms, 2 Bathrooms; 910 square feet
http://www.realtor.com/realestate/san+rafael-ca-94901-1099592343/
Like many east coast cities, Baltimore’s dense inner-city streets are lined with tens of thousands of rowhouses, mostly built in the early part of the 20th century (think Hairspray). This typical brick rowhouse on the west side of Baltimore is listed for $34,000. The foreclosee here paid $76,500 for this house about two years ago (7/13/2006). Zillow.com estimates that the value of this REO is currently $86,500… over 2.5 times higher than the property’s current listing price.
This property, with a $5,000 to $10,000 basic rehab, could be rented for $700 to $1,000 per month, delivering a decent positive cash flow to an investor. This is a good candidate for section-8, and will likely be a nice investment opportunity for whoever grabs it.
The basics...
Address: 2121 West Saratoga Street, Baltimore, MD 21223
Current Listing Price: $34,000
PREVIOUS Sale Price: $76,500 (7/13/2006)
Size: 3 Bedrooms, 2 Bathrooms; 1,147 square feet
Lot: .03 acres
http://www.realtor.com/realestate/baltimore-md-21223-1101799505/
This tract ranch in Flint is listed for $34,900, less than half of its current Zillow.com estimated value of $74,500. Its previous owner paid $68,000 for it a few years ago (3/29/2005).
Although much of Flint is quite blighted, there are lots of nicer areas where there is still demand for housing. This REO is in an area that is well-maintained and stable, so it could be a decent property for an investor or an owner-occupant. With $5,000 or so of updating and minor renovation, this house could be ready for occupancy. This house could be rented for $500 to $650 per month, so it would deliver a nice little cash flow to an investor. If you’re seeking an REO deal in a decent area of Flint, check out this little ranch.
The basics...
Address: 3662 Providence Street, Flint, MI 48503
Current Listing Price: $34,900
PREVIOUS Sale Price: $68,000 (3/29/2005)
Size: 3 Bedrooms, 1 Bathroom; 923 square feet
Lot: .11 acres
http://www.realtor.com/realestate/flint-mi-48503-1101041082/
This huge colonial revival in the Walnut Hills area of Cincinnati is listed for just $24,900, which is less than $10 a square foot. This house has lots of late-19th-century charm, and is situated on almost a quarter of an acre. The foreclosee paid $94,000 for this house a couple of years ago (1/3/2006), and Zillow.com estimates its current value at $137,000.
Although the house could use a cosmetic makeover, it is habitable as it currently is. For about $5,000, some updates could be done to make this place ready to rent (section 8 would be a great option if this path is taken). Alternately, with $25,000 to $30,000 of substantial renovation work, this house could be pretty stunning. This house could be rented for over $1,000 per month, making it a lucrative investment opportunity for anyone looking for a cash-flow property in Southwestern Ohio.
The basics...
Address: 3231 Beresford Avenue, Cincinnati, OH 45206
Current Listing Price: $24,900
PREVIOUS Sale Price: $94,000 (1/3/2006)
Size: 5 Bedrooms, 2 Bathrooms; 2,738 square feet
Lot: .22 acres
http://www.realtor.com/realestate/cincinnati-oh-45206-1100908851/
Orange County, where property values climbed dramatically during the housing boom, is now seeing a big epidemic of REO fever. This spacious ranch in Anaheim is listed for $399,900 --- about 30% less than its previous sale price; the foreclosee paid $580,000 about two years ago (9/7/2006). What makes this house particularly appealing is that it has been renovated and updated with new bathrooms and a new kitchen, presumably by the bank that now owns it (in the OC they’re doing whatever they can to unload their REOs… desperate times call for desperate measures). Zillow.com estimates that this house is currently worth $449,500.
A 3-bedroom house like this could be rented for $2,000 to $2,300, which would not be sufficient to cover the mortgage and other expenses, so it is probably not a viable investment property. For an owner-occupant, however, this house can be a great opportunity. Once the tax advantages are taken into account, the cost of living in this house will be about on par with renting a similar one in Anaheim, so it is worth a shot if you’re looking in this part of SoCal. The fact that it is in move-in condition with brand new fixtures is just icing on the cake.
The basics...
Address: 1938 East Redwood Avenue, Anaheim, CA 92805
Current Listing Price: $399,900
PREVIOUS Sale Price: $580,000 (9/7/2006)
Size: 3 Bedrooms, 2 Bathrooms; 1,750 square feet
Lot: .20 acres
http://www.realtor.com/realestate/anaheim-ca-92805-1097163544/ 
This typical ranch in Stockton, the foreclosure capital of the United States, is listed for just $114,000. Its peak value was $334,000 in 2006, according to Zillow.com; they estimate its current value to have dropped all the way to $146,000. The previous owner of this house paid $225,000 for it about four years ago (9/10/2004).
