Buying Auction Foreclosures

[Brenda Reems]

It seems to me that there is some potential for buying foreclosures at auction. I am just starting out but I'm assuming, I am correct. But I'm also assuming there are a lot more downsides to this than I am foreseeing. Lets just say an opening bid is for $75,000 but the market value is $240,000. Even if you have to put another $75,000 into the property, that should still be a good deal. If you can rent it for $2,000 that is a ROI of 13% roughly. What am I missing? Sorry, I have tried finding this question on the forums but I haven't been able to find it. My plan would be to use cash and then finance later so I didn't have $150,000 tied into the 1 property.