Kinda late response, but I've been "away" for awhile.
It's a great time to buy from an investor's perspective. Here are some numbers from a recent acquisition:
3 Bedroom 1 bath, 1032 sq ft. "Move-in" condition, (not bad for bank-owned) nicely landscaped backyard.
Foreclosure. Last owner owed $465,000. "B" neighborhood in Vallejo. We got it for $85,000, I offered $100 over asking price. As is. Spent approximately $2,500 to replace old stove and hot water heater which passed inspection but was installed in 1992, upgraded electrical main and sub panels, clean-up, and some cosmetic touch ups. Lost ~10 lbs doing most of the work myself.
20% down, plus closing cost, approximately $21,000+ out of pocket. Principal, interest, tax and insurance (PITI in real estate lingo) $591 a month. Rented 1 week after posting at Craigslist for $1,350 a month. So far, tenant has been very good. Getting the loan from ShunkofAmerica bank was like pulling teeth, though, inspite of hefty down and good credit score. But that was 3+ months ago, maybe things are better now, loan-wise. Interest rate is lower now than in December.
Rental market is strong if you can look beyond bad credit due to foreclosure or short sale. You got to have the temperament or stomach to be a landlord, though. The alternative is to have it managed for about 8% of gross.
I understand that more foreclosures will hit the market in May because the moratorium on foreclosures recently expired. Prices will get lower. Maybe later you can buy your house and charge it on your credit card like what my cousin did for a rental house in Detroit. He works at Microsoft in WA state and bought it sight unseen.
I'm not a realtor or real estate agent. In fact, I used ZIP Realty to buy this and got a small commission rebate.
Jim