Risks of buying REOs
What are some risks and cons of Buying Bank Owned [REO] properties?
Thank you in advance
Most Popular Reply
@Mikhail Zakharchuk Start with knowing you're buying the property "as is" from the start. Also know what to look for when doing a walk through of the property (broken windows, water damage, does it need mostly cosmetic repairs or is it a total gut job, ect.) Big ticket items like the foundation and the roof are repairs can end up sinking you in a deal if they aren't accounted for in the initial costs.
Most REO properties are distressed and need a good amount of work put into them to make them rentable or sellable depending on your end goal with the property. You should find a contractor or someone who can come in and give you an estimate of what fixing the place up would cost you when figuring out your maximum allowable offer on the property to make it work for you.