foreclosure investment particularly for a quick buy and sell.

How does everyone on here feel about a foreclosure livable with 60% off retail price.  Soldiers where i live default on loans like crazy!  Constant good deals going on.  

Would there be any downfalls To say buy a foreclosed property at a discounted rate then turn around and sell it for a profit.  This one home where i live was being sold at 50k. Comps for the property put the value at 120k.  Granted i didnt have my llc or s-corp at the time so i couldnt do much.  Everything in the place was re-done by the owner.  Really bummed out! it was a rare find for a heck of a profit!

Does anyone else use this strategy?  If not, then why?  

Thanks!