If you are looking for investment property, consider real estate owned (REO) by a bank that has foreclosed on the home. Such a purchase probably will be free of title liens and other claims such as delinquent taxes and homeowners association liens. What’s more, you often can choose between two options:
Occupied property: If you choose this option, you can start receiving rent right away.
Vacant property: Your other option is take a property without a current tenant. Then you can do whatever you want to make the home more appealing and start the search for a tenant of your own choosing.
REO home prices typically are less than current market value because a bank is eager to sell the property. In addition, the bank usually has secured the home against vandals, made sure the power is working, and generally eliminated some problems associated with buying directly from distressed homeowners.
A local real estate agent probably can help you find REO properties.