Huge and cheap homes for sale in Atlanta, Las Vegas, etc?

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Hello,

This is my first post on this forum. I have been in tune with the state of the mortgage industry and the past issuances of many sub-prime mortgage by banks to home owners. A lot of these individuals are now unable to afford their homes in what they thought would be great places to buy homes....take Atlanta for example.

You can find large single-family and multi-family homes in the suburbs right outside of Atlanta for example for about $130K - $225K that are only a few years old! These homes are beautiful, large, and have big yards perfect for a family. A lot of individuals have defaulted on their mortgage payments in this subprime market and now are selling their homes for very cheap.

Would you recommend buying and holding some of these properties in the Atlanta area and attempting to sell them for a profit in 3-5 years when these markets hopefully recover? In the meantime you could rent them out. For example, I saw a large 3000 sq foot home that had an estimate morgage payment of $870 a month near Atlanta. I could rent this home out to a family for $500 a month and write the loss off on my taxes. Then sell this home when prices go up in this market.

Is this a smart idea or are there too many risks in a subprime housing market such as Atlanta to begin investing in?

I look forward to your insight.