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• High-end properties. With all the talk of middle-class bailouts and helping out Main Street, properties with mortgages over $700,000 are not going to be on the radar for government assistance anytime soon. A large percentage of these homes were purchased with subprime financing, and many will adjust in 2009. Mortgage lenders sell these properties at steep discounts as REOs, and over $1 million, short sales become more feasible, too. There are incredible deals to be had in the high-end, and in many metro areas, these price ranges are actually middle-class or even entry level homes. If you have the cash to play at this price point, buying them to lease-back to the Seller or even to lease-to-own on the open market.

• Short sales. As REO listings diminish due to the various foreclosure freeze, short sales will become en vogue. The likelihood that you can close a short sale transaction is dependent more on the listing agent and the seller than on anything within the buyer/investor's control. Learn which local listing agents have a track record of successfully closing short sales, and prioritize their listings.

• Lease-to-own. Investors wanting to lock in above-market pricing and income over the next few years should consider buying foreclosure properties now and leasing them with the option to buy. Lease option tenants take better-than-usual care of their homes, and they are currently abundant, as foreclosure victims look to own again but cannot yet qualify for mortgage loans. Make sure you have a good real estate agent or attorney on your team to structure these deals appropriately.

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More on FrontDoor:

• First-Time Homebuyer's Guide
• Experienced Homebuyer's Guide
• Foreclosure Guide
• Tools and Calculators
• Are You Financially Ready to Buy an Investment Property?
• 5 Strong Real Estate Markets