$50K asking price with $300,000 in equity- Investor Scenario (Gwinnett county, GA)

[Shaeida M.]

Hello BP family!

I am new to the investment world and came across a situation that I'm not familiar with. My husband and I saw an advertised burnt property for $50K with $300,000 in equity. The adjacent homes in the area run around $500K.   

Here's my question: How would you invest in a property like this or can you?  

[Jon Holdman]

The "$300K in equity" is total BS unless lots sell for something like $400K.  If houses in the area are about $500K, then there's no way lots bring that much.

The real value is the value of the lot minus the cost to clear the damaged structure.