Well, first off I just reached one of my 2010 goals - to purchase a foreclosure on the court house steps!

I've been going to all auctions with meat and watching the big boys bump knuckles. You know, the stuff in the burbs that retails around 150 - 350k. Not wanting to put that much skin in the game straight off, and also wanting to stick to my buy hold rent SFRs in a fast appreciating hot RE market, I purchased a 2100 sq ft SFH on a very large city lot (66 x 150). The house was vacant, so I poked around quite a bit, though I couldn't gain entry. The walls look good, from what I could tell (recently painted) and the windows are replacement vinyl, the roof looks good. Doing my due dil turned up this: buyer paid 55k in 95 (neighborhood was not what it is today - ie drugs & crime) - owner occupied, and put some money into it. Judgement was for 96k, but they opened at 84 and went to 86,6. Being a newb and all, I wasn't sure if I should bid as it was just me there, oh, and a younger lass who wants to buy the house, but doesn't have capital to play the game. by her look, I'm sure she would qualify for FHA / conventional though (yup, got her number for possible flip). So I can the attorney for the bank and say, "hey, I'm sitting here on the steps and there are no other bidders... I'm tempted to pass, can I make another offer after." I got some run around, but basically they said "yes, you can put it in writing and send it over, but it will take time, and there are no promises." Anyway, knowing the street, and the neighborhood, I didn't want some realtor putting a number in the banks head (higher than the 86k I'm sure) so I opted to take my certified funds and buy the sucker. Now, I know that because my friends the big boys were not there, that this isn't the best deal that can be had on a regular basis. They're looking for 50c on the dollar and less, holding for short times, and reselling for market rate. This was about 60-70c on the dollar, depending on who you ask. You ask me and I'll say that it may be that now, but in 5 years, I'm going to be really happy. So why all this post? Well basically, I think it really comes down to what you know, and your gut. My SFRs are all in this area so I can package them up nice when it is time to exit. I have 2 others on this street. This has a garage at the very back of the large lot, that has a dead end street the buts up to it, AND it has a gate to my lot!! Now I have a place to store stuff where I won't get in my Tenant's way! I've got ample space to build if I want. Plus I checked with the city prior, and I can legally convert this SFR into a duplex.
Anyway, living and learning, and loving BP - just wanted to let you all know I'm very excited to have hit a 2010 goal already! Can't wait to check a few more boxes off my list.
Comps in this area tell me that I could flip it for 120 without doing anything, and in about 1 week on the market.

Feel free to comment / advise etc.

Cheers!
Mark