Buying a foreclosure

[Maximilian Glodde]

Hi Everyone,

first post on the forum and pretty new to BP.

Background: My wife and I are in our late 20s, living in Boston, and are sitting on equity in our apartment. Both of us have well paying jobs, no kids, and an awesome Frenchie (not relevant). 

Our goal: Financially independent by 35 - not millions but enough to not work for someone else.

Advice needed: BiggerPockets has got us so excited about real estate and now we're trying to channel that into some action. Is there any good reason not to buy a foreclosure (aside from the mountain of paperwork)? I'm looking at a property near Boston for $70k, decent school district, 5 minute walk from the train station (15 mins to the city), and median selling price in the area is well above current asking price (~$400K). It will obviously need at least $150k worth of work. They also want all cash or construction loan financed. Any thoughts are appreciated.

Ps: we are also considering buying multis (up to 4 units to take advantage of an FHA loan).

[Charlie MacPherson]

@Maximilian Glodde  If you're looking at a $70,000 property near Boston, something's very wrong with it, even if it needs $150K in work.  

It might be a short sale with a not-yet-approved sale price, which is its own special kind of nightmare.  It could also be a complete BS listing price that's designed to get a lot of traffic. One agent in the area has started doing that with REOs owned by US Bank. 

The only thing inside RT 128 selling at that price would be a wreck of a tiny condo or a mobile home.

PM me the address if you like and I'll take a look at it.