House gets foreclosed on when a borrower is not paying its debt obligations - typically its mortgage.buying foreclosures is not for the faint of heart as you have no idea of the interior of these properties lastly while it can be beneficial also realize if there are a lot in an area those homes are the new comps when trying to sell so it lowers home values in an area 

Older properties can be picked up for < 50% of ARV and go up in value in rapid ways with urban renewal efforts … I’ve seen this happen time and time again and so it’s worth saying, diversification is ideal.

There are a bunch of ways to do this depending on the property type, usage, and you (income and credit scores).If this is a primary residence, you can get up to 90% of the value of your home minus any exisitng debt. 

Look for properties where you can add value with smart, targeted renovations rather than going overboard.Financing Strategy: Since you're aware of the leverage risks, keep your financing options flexible and conservative.

Just trying to get started and although there is plenty of information out there, I thought the value was in getting the first deal with them and then learn how to replicate it.

Does adding a ADU create value in a property vs. the price of the adu build? 

The biggest thing to me is buying in quality areas that will increase in value over time.

Cash flow is crucial, especially if you depend on it for your monthly income.Selling the property for $170k, which is above its market value of $120k, might seem like a good deal initially.

Please see the rough numbers below :Tear down house price 350k,Construction cost 165 sqft * 2 build=627k too much for the land unless your exit is 3 million. don't reinvent the wheel. no single family home builder is paying 300k for land. that's miami florida prices where I live. we buy land 50k and under in Columbus Ohio. keep land at less than 10% of after built value.

@Bryan ChristopherIgnore them it’s an 8 year old fridge with a replacement value of $200.