Don't have to ask me twice, I love telling this story. It was about 3 years ago and I was just a few month into my first post-college job. I didn't want to fall into the habit of throwing money away on rent, but couldn't afford much house yet so I decided to give the auction route a try. I went to a test auction to see how it worked and decided immediately it was for me. I targeted a few neighborhoods that I thought had potential and got prequalified for a loan of $92,000.

A few weeks later I found an Alex Cooper auction in Pigtown that looked promising but I couldn't get off of work. So, I sent my newly retired Dad to check it out for me. It was a cold and rainy day which led to a poor turnout and no bids above the reserve price. I took that as a good omen and bought the property that night sight unseen, but for a good price. I gave them a $5,000 check and in return got the keys to my lovable money pit.

I pretty much did everything wrong and am very fortunate that things have worked out. I had to gut the whole first floor myself while I lived on the second. For a few weeks I had no floor except for a plywood runway from the door to the steps. I also had no kitchen except for a microwave and a George Forman grill.

Now I have an almost completely renovated home and have plenty of equity built up. I'm starting to look at getting out of the downtown area and I might go the auction route another try. 

My auction experience was with city properties in the very low price range that need work, not exactly what you're talking about. But it is an interesting way to buy real estate that I think more people should consider.