If you have cash and stomach for it, pre-foreclosures and court house steps are where the best deals are found. Of course, the highest risk is also found on the courthouse steps because you will not have the opportunity to inspect these homes first - buyer beware. There are some neighborhoods in Raleigh that had above average appreciation last year, like Brentwood. Also, I have seen some great foreclosures listed for auction in Apex and Cary in very popular neighborhoods. It's a great time to buy!

Best wishes -

I agree with Tim about short sale properties in good locations and should be structurally sound though will need cosmetic work. The price range determines your end buyer--if the price is $150k-$250k, your most likely buyer is a first time home buyer. They tend to get FHA loans. FHA requires that the house is owned for at least 90 days. This means that when you buy it, you need to wait 3 months before you can sell it if the buyer is getting an FHA loan. Something to think about in terms of timing and the time of year.

When you take your road trip, knowing the right locations in an unfamiliar area is not so easy, unless you have help from a knowledgeable Realtor. Wherever you go, I would suggest that you contact a Realtor for advice and help. Also, the Offer to Purchase and any additional forms vary state by state.

In the Triangle, the most frequent buyer since May, 2009 is a 1st time home buyer. High priced houses are not selling as easily.

I'm selling a short sale right now and the interest has been tremendous, along with 3 offers. Please call me if you want to talk about your trip. I wish you the best of luck.

Vivian Olkin w/Keller Williams
919-624-5479

the best return is on Short Sale properties that are well located. Not that many buyers will wait as long as it takes to get them approved, so you can normally get a 10% discount below market value. Well located properties have the appreciation potential, and the inconvenience of the Short Sale gives you the good deal. I have one in Cary that was a steal on a great house. By the way, I teach a class approved for Continuing Education Credit by the North Carolina Real Estate Commission on Short Sales, and you can get my book at http://www.CreateAShortSale.com.

REOs can be a good deal, but by the time they are listed, everyone passed on buying them on the courthouse steps. In other words, it is hard to get well located properties as a REO, and most of them have substantial problems.

You can also get some good deals when the sellers are relocated, as the Relocation benefits can make the price better on a good house.

Some of the screaming good deals are on houses that no one wants to buy. If you have to brag about the price you paid every time you look at it, you made a mistake if you want long term appreciation.

Good luck,,