First Timer - To Buy Bank Owned or Auction

[Jake Gandolfo]

Looking for homes in and around Phoenix, Arizona. Prices are high in this area and I think I will have better luck finding a cash flowing property with foreclosure homes. Many homes are going to auction however and so I'm wondering if auctions are a useful/common place to find well priced homes or if I should stick to bank owned properties that have a set asking price. I am looking for my first rental property at this time, very new to the world of real estate investing. Thank you in advance for any help!

[Ray Thorsen]

Buying at auction typically requires all cash and offers no opportunity to get in the property prior to owning it. Its a gamble. For your first property I would want to have a chance to inspect it. For that I would stick to REO properties to start.