With the "REO" trash out business, it doesn't matter where you are - there will be lot's of competition!
Our family has a "trash-out" business in an area that has tremendous competition.
The difference is to do your business RIGHT.
Network with Realtor's. Read online and try to locate Asset Manger's phone numbers. Research REO websites and contact the Listing Agents.
Start out professional. Market and advertise yourself differently than what you see with the other competitor's. Make sure you carry a license and insurance. (Banks require those qualifications).
Try and make your biz a "Full Service" company, From cleaning out the property, to: window cleaning, repairs, yard maintence, carpet cleaning, etc. If you don't do all those tasks, line up a list of licensed and insured sub-contractor's.
If can be a very lucrative business if done correctly. Don't be intimidated by the other competition - research who they are and then do it better!
Best of Luck!