Do your own research. 

IF it was not on an auction site none of the information would be known unless you do your own research. they could say its a 3bed 2 bath home and you go buy and its burned down (seen that before). 100% is on the person bidding at auction.

@Rene Hosman Did some research on these options and found some unfortunate news.

A national buyer would review the BPO and maybe do some brief online research, but would not typically not know, as in your example, about the sewage issues or extent of interior rehab needed.

Consider starting with a few lower-cost flips with a smaller loan-to-value ratio to reduce financial strain.Market Research: Sacramento can be volatile, so I’d recommend keeping a pulse on local trends—particularly in the neighborhoods that have potential for growth but haven’t quite hit their peak yet.

Research them away from their reviews and see real experiences.

1) They naively expected Class A results from the Class B/C/D property they bought.2) They didn't do enough market research to even know they bought a Class B/C/D property.3) They didn't do enough due diligence on the members of their team: agent, PMC, inspector, etc.

“Jorge, this is pure gold—you’re laying out the exact playbook for maximizing every inch of a property’s potential.

So, when investing in areas they don’t really know, investors should research the different property Class submarkets.

 I did an investment research trip to Guanacaste, Costa Rica in March of last year.