VERY cheap ($1, $500, $1000) house, good buy?

[James C.]

I occasionally see "opportunities" to purchase real estate at stupid low prices $500, $1000 or even $1. They are always junk, in depressed areas, with marginal hopes for appreciation. Even if you were able to get them habitable, the rent cashflow makes little to no sense, mostly due to economic vacancy. In reality, the only economic value is the land, and even that, it's a peanuts play. The only bright side is that the investment of time and capital is minimal.

How do you evaluate those sorts of deals? When do they make sense? is there a good short/long term strategy? 

Thank you,

Jim