Flipping homes in a foreclosure heavy neighbrohood?

[Ryan Dossey]

Someone recently brought me a property that they thought would be a good candidate for a flip. Purchase cost of 27k rehab of 35k Arv of........? 

The trick I was finding with this property is there were foreclosures going for 50k. There was also a rehab or two going for around 100k. Even averaging them out the home looks like it would go for around 75k. Do you guys just choose to avoid properties like this? Do you not count foreclosures in your comps? Seems like this is a great way to lose money. But I'm also very cautious on what I think is a deal/is not.