[turbo6bar]

I've noticed the cheaper properties are seeing sporadic activity. Sometimes, they'll sit and investors will get a really good discount. Other times, homeowners will bid at first chance and pay well over asking. I speculate the government tax credit is creating some artificial demand. If you go above a price threshold, you'll find less interest from the normal buyer, and you can grab some great deals after discounting the lender's asking price.

Have your financing in place beforehand. Don't underestimate the costs/labor for repairs. A simple rule I favor: For every dollar invested in repairs/materials, I want at least $2 of equity (eg. $5k in repairs = $10k in extra equity). If you're providing sweat equity, you want more equity output. $500 in materials + sweat equity = $2500 in new equity, for example.

Don't forget the pride of ownership and emotional well-being. If you're drawn to one house emotionally, be fine with paying a little more, but don't go crazy. Buying a foreclosure is ALL about saving money. You can bank a lot of emotional well-being by buying a great property at a GREAT price.

If you're numbers driven, check local pricing of rental properties. How does that compare to the cost of owning?

As far as condition, you're on your own (properties sold as-is). However, there really aren't a lot of deal killers. I rate foundation as one deal killer. Roof: can be repaired. Paint, drywall, carpet, cabinets, flooring: these cosmetic details are straightforward. HVAC can be hit or miss.

If you get some details, post here. Maybe we can digest and give feedback. good luck, jurgen