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This very thing happened on my street as well. A foreclosure went for nearly HALF of what the non-distressed properties have been selling for. The house was a mess - a disgusting mess. Only a flipper could see the potential value. They invested nearly $50,000 - painting, replacing carpet, resodding the lawn, and updating the kitchen. Less than 90 days later they resold the home for market value and netted a cool $70,000. 