Savvy investors can find great value in purchasing homes at the court house. It is important to do your due diligence in scouting the home as to its interior and exterior characteristics, whether it has a tenant and whether there are any liens. Once you buy it, all existing problems are yours. Have a contingency plan and cash reserves in case the property needs more work needed than expected.
--Bob Machado
If the foreclosure is in a good, DESIRABLE rental area, and the repairs are not too costly, then they may make sense. If, however, the repair costs * done from capital at hand * are too costly, the property may NOT make sense.
In the olden days, repairs would be done and the property would be REfinanced at the increased value and the repair costs would be REfunded to the investor's pocket - that may be harder to accomplish now.
Here we have too many big companies bidding them up so it is a waste of time. I have a better way to get to them before the courts.
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