Interest rate 3.8% In short this is how you do it...Find a flip opportunity, use hard money or what you got to buy, rehab it, re-finance it, boom.  

Interest on a loan used to buy or improve a rental property is ALWAYS deductible against that rental property.

I ask because we only buy houses around the southern US (TX,OK,AR,TN) but we're curious to know if more opportunities to buy foreclosures could potentially exist in other markets. 

I am buying a duplex about 80k under what it will appraise for.

.: So in 25 years people that buy now will be glad.

The biggest question you need to ask yourself is if you are doing this to afford a property you otherwise couldn’t afford or to save money period, that will lead to very different conclusions about where/if to buy. 

@Cameron Porter half off of a $30-40K price may not be enough to make a purchase work.We've seen clients quickly get upside down with Land Bank purchases:(So, proceed with caution and hire a great inspector and contractor to go thru the property before you agree to buy it.

It sounds like you are trying to buy a second property with less of a downpayment than 20 percent.

You do this buy buying a quality asset in a good enough location.

Quote from @Nicole Laba: I work with investors in Chicago who are actively buying off-market properties, and Ive noticed that everyone has a different approach when it comes to sourcing deals.