I Need Advice on my first REO purchase

I'm still trying to purchase my first REO (the 17 yr old, 3 BR ranch that I found a couple of months ago). I entered into the contract on Aug. 7, my closing date has been extended 2 times now due to the deed still not being recorded by the County Sheriff's Dept. I'm now getting concerned about finding renters for the property due to the time of year. If I can't close until the middle of Oct. (still need to clean up the yard, paint & have capeting installed) which means it may not be until the last week in Oct. when I have it ready to rent.

Another housing slump coming? Analysts say 7 million soon-to-be foreclosed properties to hit the market

Another housing slump coming?
Analysts say 7 million soon-to-be foreclosed properties have yet to hit the market.
By Elizabeth Strott
Thursday, September 24, 2009

Any optimists touting a housing recovery might want to pause and think about this: Amherst Securities Group analysts believe the market faces another major hurdle because about 7 million properties that are likely to be seized by lenders have yet to hit the market.

The "huge shadow inventory" reflects mortgages already being foreclosed upon or now delinquent and likely to be and, assuming no other properties are on the market, it would take 1.35 years to sell this inventory based on the current pace of existing-home sales, analyst Laurie Goodman wrote in a note to clients.

Home Buyers Get a Reprieve

Home Buyers Get a Reprieve
By Sudeep Reddy and James R. Hagerty
The Wall Street Journal
September 24, 2009

The Federal Reserve, in a move aimed at keeping interest rates low for home buyers through early next year, decided to extend and gradually phase out its purchase of mortgage-backed securities.

The Fed's action signals its belief that the economy, while in recovery, remains fragile and that housing, which has seen some improvement in recent months, has only started to pull out of its slump.

Louisa's Journal - The Sky is the Limit!!!

So this is my goal... 5 deals by the end of 2009.

I figure if I state it at the top of my blog, I'll have to look at it every day when I hop on here!

Declaring this goal makes me a bit nervous, but I also know that if I make great strides and do a few deals and don't quite hit 5 by the end of the year, I will still have conquered my fears about it, have a lot more info to make many more deals happen more quickly going forward, and I and will hopefully be miles from where I am right now!

But make no mistake...I am serious about my goal of 5 deals and serious about putting the time in to make it happen.

vacant home! put on your thinking caps

I just got off the phone with a lady I thought owned a house I have been eyeballing for months. Just got the nerve to call at her work because I couldn't find personal #. Turns out I was the fourth person to call about the house, second person today! It's been vacant for atleast 8 or 9 months.

Found out (before I called her) she bought the house in 2005 for $88,710.00, taxes are 1558.00 annual. According to the county website it is not in foreclosure. Also checked foreclosurealert.com and realtytrac.

Going to Closing!! JGREER First Buy and Hold!! KILLER DEAL!! PRICE REDUCTION!

Here is the KILLER DEAL!!

up 1BD/down 2BD duplex

Purchase Price $20,000 IS NOW $15,200
Gross Rent $875
Loan payment -$120 GOING DOWN!!
Taxes -$115
Insurance -$ 50
Up gas credit -$ 75
Maint reserve -$ 50
20% vac reserve -$175
Net Income +$290 x 12 = $3480 annual GOING UP!!

DP an Closing costs(GOING DOWN) $7,000 = 49% ROI (GOING UP)

Does not yet include Phantom INCOME!!!!!!

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