@Megan Roche,In addition to what Kevin said, remember that 4 units and under are "residential".

Peeling paint was one and I can't for the life of me remember the other but it wasn't major.

Remember though, I am not an attorney or a CPA so the best way to get the perfect answer is by talking to one of them!  

Remember comps are based on actual sold properties.

Remember: probate is a solution to a title problem that is just one way to transfer ownership.

Remember the 3 most important things to take into consideration when buying real estate:  location, location, location!

We all know they are the vast minority, but they are the ones that are going to dictate public policy and the ones people remember.

You'll live much more inexpensively, won't need much cash to put down, and will be able to start cash flowing (assuming you buy it right) right away.Just remember that there are many more expenses than just the down payment.

I remember reading that you pick properties up for around 34k.

I just can't remember the code number I quit buying preforeclosures right after the laws in OR and WA were enacted...I think a lot of this stemmed as well from the Florida companies that were charging 1000 to 1,500 telling people they will keep them out of foreclosure... only to have many lose their homes..