During my search for my first bank REO, my wife made a special trip out to Las Vegas to check out this highrise bank REO. It was the first one owned by the bank at that time. I think the prices were in the $180,000 range for a studio on a high floor for a resale and brand new lofts at the time were still in the $300,000 range.
One day while looking at my regular real estate sites I check out, this bank REO came to market at $131,000 and I thought this is a steal. I called the real estate agent up and set up an appointment to be there in 2 days and to sign a contract after looking at it. When we arrived that day, the real estate agent told us that an offer was already made and it went to escrow. My wife and I were suspicious but also very disappointed.
This is what the condo loft looked at.
My dream loft stolen
There was a second loft that went to the bank about a month later and that also had an offer on it before we could look at it. We did look at 3 other lofts during our initial trip and thought they were great.
I look back now and think my wife and I got lucky because we found something much better in a great location. That building never sold out and the flipper who bought the condo loft wasn't able to rent it out and has it up for resale. At that time that was a crazy price. Now most of those lofts are about just above $100,000 with a few that are listed just below at $85,000. We would have probably had a paper loss of about $50,000 in one year.
Other issues that have come up are the HOAs there might increase or could possibly go bankrupt because the building looks to be less than 20% sold or occupied. I heard the actual building went back to the bank. Then I read the bank filed for bankruptcy. Anyways, sometimes blessings are in disguise.
I hope that helps you in your search.
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