CalculateRealEstateROI

House Flipping

Real Estate Owned (REO)

Bank-owned property that failed to sell at foreclosure auction.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Plain-English explanation

Bank wants it off books. As-is, often with deferred maintenance.

Examples

  • Bank lists REO at 70-80% of ARV.

Common mistakes

  • Skipping inspections on REO.