I was thinking of starting out with a foreclosure property in functional condition that will not cost too much to fix up.

Sure would be nice to have a clear cut answer to that, but there is not.There are too many variables involved, remaing term, credit, seasoning and proven payment history, collateral, loan to value, property condition and the details of the contract including the security assignement and foreclsoure process.Best to get bids, and look in your area for other investors, including those who buy RE, your best deal might well be from a local individual looking for a good investment.

Some newer homes are actually in worse structural condition than an older home.

However, in Kaliforinstan the Seller is required to disclose considerable information about the condition of the house and potential hazards to the property.

This apartment features New Central Heat and Air Conditioning, paint, carpet and tile in the bath and kitchen.

If you are looking to purchase with conventional financing you'll need to look at homes that are in a better condition and can be financed.

The prior financing may have fallen through due to the buyer not qualifying, not the property condition.

Obviously, due diligence is required on my part to get up to speed re: market conditions, neighborhoods, everything.

Are you telling the owner that you are willing to pay a specific amount for the lot, conditioned on clear title being transferred for that price?

You could buy one that is already fully rented, and just make it a condition that one of the units needs to be empty.