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/

Stockton, CA Ranch

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/

Grosse Pointe Woods, MI Ranch

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/

Tampa, FL Ranch

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/