Sacramento Business Daily

What is the catch to buying a foreclosed homes under $30K in Sacramento, CA as an investment opportunity?

I am looking into purchasing a foreclosed home listing under $30K in the Sacramento area as a rental property investment opportunity. What risk am I getting myself into? I am a new homebuyer (inexperience) and would welcome any advice.

Public Comments

1. there is no catch. here I am in Eugene and it's like March and I'm STILL freezing my nuts off. I grew up in Sacramento, where they seemed to underSTAND the concept of warmth
2. First you need to find one. A commercial mortgage for rental properties are difficult to obtain, a regular mortgage lender only does primary residence loans
3. There is no catch, as long as you are fully aware of that $30K will bring you. In ANY market, that price is dirt cheap. I'm guessing that the property in question has issues, and not SMALL issues. Insist on full qualified inspections of the property, as well as thorough searches of whether or not the title is 'clouded'. Make all such inspections a contingency of your offer. If the inspections do not return the result you expect, you need to be able to extricate yourself from the offer.
4. A home costing only $30k in CA????? Thought Ohio had cheap realty. Be sure you get a inspection when making your offer. Also know that you may be responsible for any pass leins on the home, back taxes owed, and whatever else that may pop up. It would be wise to hire a realtor and an attorney. At that price I am sure it's a BIG fixer upper !''Maybe'' Well worth the investment seeing that it's in Cali and most small homes in decent neighborhoods are ridiculous priced anyway.