Would you Consider buying a Foreclosure as your First investment property?

[Kim Kelly]

Hi BP Family,

A quick thank you to some of the seasoned REI's actively posting that strive to help us newcomers understand and use the forum the best way possible! To my fellow Newbies – Don’t Give Up! It’s ok to feel lost, overwhelmed, excited and confused… all at the same time. My biggest tip I learned – Use the “search” function (the magnifying glass next to your profile icon) to search for your question BEFORE posting it on the forum. I have found many answers on many existing threads, to help guide me along my journey.

Actual Question: Would you consider buying a foreclosure as your first investment property, as a relative beginner?

Context: I've been using MLS, realtors and wholesalers to seek out my first investment property (debt free outside existing mortgage, $100k cash saved, stable income), since my network is fairly new and limited as a green investor. I'm starting small, with a "Slow and Grow" approach, and have found a 2 BD SFH in my price range (under $150k) that needs rehabbing, BUT it was foreclosed and is now sitting vacant.

In your experience, would you advise that it's best to avoid the complexities of the foreclosure purchase process as first property newbie, OR proceed with caution under the right circumstances.

Any (and all) advice is appreciated! Happy to share additional info. Thank you for reading!