Investors Getting Great Deals On Houston, TX Real Estate Properties

I have spoken to several investors that have picked off foreclosures, or houses in auctions for way under market value.  From beach property, to bungalows, family homes, and mac-mansions.  One of my investors, told me he picked up a Tiki island property at auction that was the lowest priced in the area, yes, it needed work, but he would still come out ahead after repairs.  The others have been very successful at obtaining some great bargains on other types of homes.  One in particular, was a 7,000 sf house in a suburb of Houston that had belonged to a Houston Rockets basketball player.  So you know it was'nt finished out cheaply.  He paid in the low-$400 range.  That's unbelievable to me.  Where else in the country can you get that caliber of house for that price?