You have an opportunity to buy with no competition AND you have the money.

It's basically a proof of concept for you and your sphere of influence (family and friends) so you move on to more and perhaps even better deals.

@Nick Marie  we do not buy any database,  we create one using Zoho CRM  if you make your own, you will have less competition,  

REO's DO look at rehab costs for their properties, however this only helps if there is no competition for the property, which is rare in my market.

The most-accepted method for finding this kind of deal is to do mail lists or call lists of current owners - that way, they already have you in mind when they are looking to sell.The best way to get good returns on a property like this are to:Find an off-market seller through the above-mentioned methods, and negotiate a deal that is win-win for you and the sellerFind a property (on- or off-market) that has room for value additions, either through growth, increasing income or decreasing expenses.Most properties that are on the MLS market will be competitively priced, or will need work and are thus value-add opportunities and will not be great deals from the beginning.

It is crazy competitive around here. 

If smart, Bigger-Pockets-reading real estate investors require a 20% discount, and only 1% of the properties for sale meet that criteria, won't there be competition for those properties, which will drive their price back up?  

I went searching for a house to buy, market way too competitive, so started leaving letters on people's doorsteps and a few hit!  

You have to understand what is your competitive advantages that you have as an individual.

Both are challenging to find the right property and there is a ton of competition from new Mel's listings that appear worth while to look at.