Buying (pre) foreclosures and letting tenants stay for 1 year

[Johnny Kula]

What are the pros/cons of the following:

Owners home: FMV $200k, owes $130k, house is in decent shape.

Owner loses job, can't afford to stay, going into foreclosure.

I buy the house from him at what he owes and allow them to stay for 1 year NO CHARGE to them.

13th month, the rent begins at $1k (FMV) per month. If they can't pay by then, eviction process starts.

This way I just bought a house for $142.

Has anyone tried this? I see the delay in NOI, but that makes up for the discount going in...

What are your thoughts?

Johnny