Bay Point, CA Condo

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

http://www.realtor.com/realestate/bay+point-ca-94565-1102551549/

Durham, NC Bungalow

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

http://www.realtor.com/realestate/durham-nc-27704-1103019537/

Boston, MA Condo

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

http://www.realtor.com/realestate/boston-ma-02114-1103026740/

Akron, OH Colonial Revival

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

http://www.realtor.com/realestate/akron-oh-44301-1102934198/

Lake Elsinore, CA Spanish Colonial Revival

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

http://www.realtor.com/realestate/lake+elsinore-ca-92532-1102446440/

Oak Park, IL Bungalow

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

http://www.realtor.com/realestate/oak+park-il-60304-1101219403/

East Palo Alto, CA Ranch

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

http://www.realtor.com/realestate/east+palo+alto-ca-94303-1102855455/

Erie, PA Cape Cod

This classic post-WWII cape cod house in Erie, an old rust belt city situated in the little northwestern extension of Pennsylvania that separates Ohio from New York, is now listed for $15,000. The foreclosee here paid $36,000 for this house over five years ago (3/31/2003). Zillow.com now estimates that this property is worth $45,500.


This house is by no means a buy-of-a-lifetime, but it could probably be a good, solid investment, or a good opportunity for a first-time owner-occupant buyer. With a $5,000 makeover, this house could be ready for occupancy, and could be a good starter house. For an investor, this house could bring in $600 to $1,000 per month in rental income, delivering pretty good cash flow. If you’re expecting to use real estate get rich in a year or two, the rust belt is not a place to look for an REO. However, if you’re already in the area and you are looking for a little something for the long haul, a buy like this could be a good move.



The basics...
Address: 809 East 8th Street, Erie, PA 16503
Current Listing Price: $15,000
PREVIOUS Sale Price: $36,000 (3/31/2003)
Size: 4 Bedrooms, 2 Bathrooms; 1,098 square feet
Lot: .11 acres

http://www.realtor.com/realestate/erie-pa-16503-1102501310/

Poinciana, FL Ranch

This 3-year-old stucco ranch in Poinciana, in the Kissimmee area, is now listed for $96,900. Its previous owner paid $180,000 for this house a couple of years ago (1/20/2006), and Zillow.com now estimates its value at $176,500.

This REO appears to be in good condition, and could be a decent buy as either a rental property or for an owner-occupant. This house would rent for about $1,000 per month, but it must be noted that the $240 monthly HOA dues will cut into the cash flow for an investor. If you’re looking for a deal in central Florida, however, the Kissimmee area is ripe for the picking.

The basics...

Address: 1604 Pompano Way, Poinciana, FL 34759

Current Listing Price: $96,900

PREVIOUS Sale Price: $180,000 (1/20/2006)

Size: 3 Bedrooms, 2 Bathrooms; 1,441 square feet

http://www.realtor.com/realestate/poinciana-fl-34759-1101553133/

Euclid, OH Cape Cod

Until the recent foreclosure, this cute little cape cod in Euclid, an east-side suburb of Cleveland, had not changed hands for over 30 years. This house is now listed for a mere $23,900, which is, quite shockingly, just about three-fourths of $32,500, the price the foreclosees paid three decades ago (6/30/1976). Zillow.com estimates that this house is currently worth $95,500. REOfever.com readers might be wondering “why, after 30 years of ownership by the same couple, would this house be on the REO roster now?”… well, with a bit of digging it has been revealed that the owners of this house refinanced this property over and over, each time pulling out more cash. Most recently, in 2005, they got a $95,000 mortgage. It appears that using their house as an endless ATM eventually caught up with them.

This house appears to have been well maintained by its long-term owners, and, with the exception of some cleaning and minor cosmetic work (it is difficult to understand why the realtor or whoever it was taking the interior pictures would neglect to spend 3 minutes cleaning up or at least hiding the junk strewn about the otherwise decent-looking kitchen), it is ready for occupancy. A house like this could be rented for $600 to $700 per month, delivering strong cash flow for an investor. It could also be a great starter-house for a first time owner-occupant buyer --- this would be way cheaper than rent, and could prove to be a fantastic long-term investment opportunity in an area that is clean, well-maintained, and convenient to freeways.

The basics...

Address: 951 East 228th Street, Euclid, OH 44123

Current Listing Price: $23,900

PREVIOUS Sale Price: $32,500 (6/30/1976)

Size: 2 Bedrooms, 1 Bathroom; 1,044 square feet

Lot: .12 acres

http://www.realtor.com/realestate/euclid-oh-44123-1102010116/

Daly City, CA Modern

Here is a great ocean-view 2-bedroom mid-century modern house in Daly City, the town that inspired Malvina Reynolds to write the song “Little Boxes” in the 1960s, listed for $418,000. This house’s previous owner paid $730,000 for it about three years ago (5/27/2005), and Zillow.com estimates its current value to be $578,500.

This rental value of this house would be about $2,200 per month, so it does not seem likely that it would work for an investor looking for an income-producing property. It could, however, be a good opportunity for an owner-occupant. Much of the original detail appears to be intact in this classic Westlake house, and with some minor renovation this REO could be renovated/restored to be quite a cool pad. The close proximity to San Francisco makes this area desirable despite the oft-gloomy weather, and this house is worth a look if you’re looking for a mid-century modern project house in the Bay Area.

The basics...

Address: 1344 South Mayfair Avenue, Daly City, CA 94015

Current Listing Price: $418,000

PREVIOUS Sale Price: $730,000 (5/27/2005)

Size: 2 Bedrooms, 1 Bathroom; 1,060 square feet

Lot: .08 acres

http://www.realtor.com/realestate/daly+city-ca-94015-1101227998/