REO Properties Colorado

First time posting… I found this forum to be extremely informative. Thanks to all of you that post your experiences.

I’m a CPA and also a Realtor that does business in the Denver Metro Area. I’m trying to build the courage to buy a few properties to minor rehab, rent, and hold. I’ve worked with HUD properties as my Broker is a Local Listing Broker for HUD. HUD properties appear to be priced below market whereas regular REO properties are priced to the market. I have noticed that some of the Brokers that push bank-owned properties disclose a variable commission in the MLS. Could it be that they are trying to secure the highest price for the best commission instead of unloading the property quickly?

Can anyone share any experiences with REO properties and accepted offers below MLS list price? With the rental rates in Denver versus the property prices, I’m not finding many opportunities for scenarios that positive cash flow.

Thanks in advance for any input. Ed