The house on the corner that sold for $710 also has the "carriage house," so its a decent comp.I have offered it to the previous tenants at $2900, should hear back this afternoon if they're ready to sign a lease. 

That said, we have a number of borrowers we've sold homes to with seller financing. 

The buyer is saying the lender will question why the home is being sold so quickly after purchase for so much more. 

Josue Rivera Josue Rivera search for sold lots in the area, that will give you an idea of the lot value.

What are my risks of buying a property which was sold at a foreclosure auction to one party (who may have made immediate improvements) and then the property was taken by a party which had purchased/exercised  redemption rights. 

My guess is that the seller sold this "As Is" and made no representations.

Thanks for Reigniting this topic, Sean.I sold both of these homes in the end.

I bought my first house (primary residence) in 2013, fixed it up while living in it for 4 years and sold it in 2017 for a decent profit. 

Ultimately I sold all my out of state rentals simply because the return is very dismal. 

The best learning tools I would recommend are:  Read Brandon Turner's book on Rental Property Investing https://www.amazon.com/Book-Rental-Property-Investing-Passive-ebook/dp/B018UTI2DOListening to the BP Real Estate podcast https://www.biggerpockets.com/podcastListening to the BP money podcast https://www.biggerpockets.com/moneyshowAttend your local REIA meetings to networkStart analyzing deals to get practiceEngage more on the BP forumsAll the best!