I've definitely made some money both on the cash flow and appreciation (appreciation was a surprise in most cases).But that being said, the exit strategy is difficult and I can see why people lose money on these ventures.Four pitfalls I see:#1 Lack of control:  Depending on property managers who in most cases do not have your interest in mind.  

It depends on your goal and objectives.

The funds should be back to you in 3-5 days, depending on your bank. 

@David Stone depends on the credit union and how bad they want business.

Depending on the value of the property you will need to show up with $x,000 in certified funds to register to bid and if you are the high bidder you will need to increase your deposit to y% (typically 10%) of the high bid within a couple of business days. 30 days settlement is standard, so financing is possible.The difference in risk level between private auctions and foreclosures is huge.

We have different pricing options depending on the screening package you want.

Doesn't look too bad depending on how accurate your expense number are.

It all depends on what terms he is offering (seller financing is usually amortized over a shorter period with a higher interest rate).  

you can cash out after 6 months of ownership so your answer is yes up to 70-80% LTV depending on your appraisal value you may be able to take out a lot of your original down payment or rehab costs.Let me know if you have any questions or what zipcode/area they are in and we can discuss comps and or options.

(PS I have never done one, so I'm going to have to depend on my attorney.