Buying rental properties

[Taylor Hall]

I currently own two homes. One I live in and one I rent. I recently listened to the podcast with Ashley Hamilton and she spoke of buying houses in foreclosures or auctions for 3000 all in. My question is - how? I am in Florida and I’m

Confused at the auction or foreclosure processes. Don’t you take on the loan amount after you bid and win at an auction. I have a friend investing in properties that are foreclosed on in Ohio- and she has to put in a deposit- of 1500 then just closing costs and the house is hers. It seems a smart way to buy - having no mortgage and able to rent. But maybe I am just unsure how or where to find offers like that. 

Thank you ! 

[Leah Stuever]

The bank needs a certain amount in order to satisfy the debt. If no one bids that amount, then the bank will just bid on it and sell it as an REO.

So, if the loan amount is low, and other people are interested, then you may be paying for more than what the bank is owed. but you will not be paying less at auction