If it goes above that, then I took the gamble and lost.  

That's a huge first step to make in a new direction and I can imagine you are thrilled.

That doesn't seem like a good investment to me, it becomes very much a gamble on appreciation. 

If so, am I basically taking a gamble at purchasing through an auction? 

. :)Not sure were this cash flow is gold and appreciation is gambling ever came from...

The fourth will not.As far as finding REOs without an agent, there are ways:- Have an agent set up an automated query for you;- Search the REO sites directly (Homepath, HUD, etc);- Find a brokerage that syndicates listings onto their website.All that said, there are plenty of agents out there who would be thrilled to work with you, ASSUMING you are a serious buyer.

That was an incredible deal though rich, especially back in the 70s, i know you were so thrilled at how things turned outMike: Thats a great return in a short period of time!

It requires extensive experience, but you have to be willing to gamble a little bit to be successful.

While we were never overtly irresponsible with money (i.e. gambling debt, drug habits, credit cards, expensive cars), we moved many times, did PhDs, and spent the better part of our 20's and 30's doing things that might have been personally enriching, but were at some level exploitative of our time and not financially beneficial.

You make a very interesting point that I didn't even think about how some agents take a gamble working with people for weeks or longer to only realize that they don't have funds to close.