3 REO Property Examples of What to Avoid

When dealing with REO property you can sometimes get a great deal. The last thing that the bank wants anything to do with is real estate. Therefore, if they have any real estate in their portfolio, there is a good chance that they would like to get rid of it. Therefore, you have a fantastic opportunity before you with REO property. However, just because it is REO property does not necessarily make it a good deal for you. Here are a few things to watch out for when dealing with REO property.

1. Too Much Work

Some work is to be expected when dealing with this type of property. However, it gets to a point where the work is just too much to handle. You will eat up your profits with all of the repairs.

2. Structural Problems

Properties that have serious structural problems are usually best to avoid. If the foundation has problems you will be spending quite a bit of money to try and repair it. 

3. Mold Problems

Some houses come with mold contaminating them. While a brave investor might think that they can overcome it, there is no way to predict how much the process will cost to remove it. Therefore, it is best to simply avoid it. 

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