Rural repressed areas

[April Oswalt]

I've had my eye on a property down the street from my office for a few months now. It keeps going up for public auction with a starting bid of $500 with no reserve and nobody is bidding. I think I could get this for under a grand. I spoke with a neighbor who has been inside and the place needs a total redo...the windows are all broken out and covered with plexiglass, roof may be leaking and needs replaced, pipes are likely burst...but it's a big place with a lot of old charm...the porcelain kitchen sink is probably worth more than the auction price. A friend joked I could buy the house just to get the sink. I'd guess 40-50k to rehab it enough to be liveable. This is a repressed area and there arent investors out here in this rural small town that I know of...I haven't seen many rehabbed houses on the market here. I dont think it would sell around here for high enough after rehab to make it worth it. Im kicking around finding a way to rehab it as a rental for military vets with PTSD or victims of domestic abuse...I treat these people in my therapy practice. I'd like to hear thoughts of experienced investors and stories if anyone else has done deals in rural repressed areas and what their experiences have been like.