Please keep in mind, the transfer and recordation rate is 2.2% (seller and buyer pays 1.1% each) for properties sold at $399,999 or less.

I found a foreclosure that is only $32,900 in a neighborhood with houses that sold for around $130,000.

In all the markets we've bought and sold houses, I've never quite seen that variety of building years and sizes in the same area before, so this is unfamiliar to me.

If they are *good* comps (within 1/2 mile, sold in the last 6 months, same basic floor plan, same basic vintage, same basic upgrades, same side of the freeway or river, or mall etc) then 3 is fine.

We hung on and sold for 180k. 

My strategy was to take out a loan from a private investor, move in, fix them up and rent them out and refinance. 

Then ask for a hard money loan over $50k.The other option would be to find a private lender, or as someone else mentioned, sell it as-is.

Or find sold short sales, reo's, etc and see who is handling those type of transactions. 

If anyone is looking for private money, let's talk!

What I have heard and read is compare it to similar properties in the same area that have been sold recently.