Question about NOT buying a foreclosure for long term rental

[J Singh]

So I would absolutely not able to invest in a foreclosed property for long-term rental due to various reasons.

I know that with foreclosed properties for long term rental, the main benefit is the Refinance in the BRRR method for long term rental properties.

From what I understand, this is due to the ability to increase the ARV (After Repair Value) of a home through renovations and increase the home's value; then refinance with the higher ARV to get a second lower mortgage which replaces the first.

Not to mention that foreclosures for the same areas are cheaper than comparable non-foreclosed or pre-foreclosure properties.

However, hypothetically:

If I were to buy a property, not refinance it, save up over a couple years to buy another property and refinance that, I would be ok with that.

Is there anyone that has experience with buying non foreclosed homes and any details?

Also please feel free to correct me if I misunderstood anything I was trying to explain.

You'd be helping out a newbie :)

Thanks

[Pat L.]

I agree the majority of the foreclosures we have accumulated over many years were all cash. Tough to get any form of financing & sometimes just as tough to get insurance on the ones we have since made a LOT of money on. In fact some were so bad I wouldn't even let my wife see them & a couple I did a quick walk through to avoid losing my breakfast. BUT we have fellow investors that will tackle just about anything, so we pay cash hold it contract-for-deed & they rehab, rent & manage it all on their dime. All are still Long Term Rentals & some have since been refi'd. We literally got them for cents on the $ & I could write a book on the experiences we had. 

It's been an exceptionally profitable niche for our fellow investors & especially for us. One foreclosure we know of just sold for way above the banks asking $$$. We knew the previous owners, (he was a heavy equipment operator & did work for us). They housed 9 pit bull plus pups & several other mutts. The place smelled so bad you literally couldn't breath through your nose & we were ONLY in the kitchen!!!

Most walk away, some of us see $$$$$