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$5k House - Foreclosure - HUD - Downside?

Hey, My friend and I are looking to buy our first piece of property. We are looking at foreclosed homes from 5K-15K. We are both 20 year old college students, and can put cash down on the place. We have always wanted to buy a piece of property by the time we are 21. We would spend this summer fixing the place up ourselves and then hopefully renting it out. The tax on the house is ~450$ a year. We can deall with that. We dont see much of a downside to this. We will learn the real estate market a bit better, we will use trial and error to fix the place up ourselves, we will own a house that we paid cash for, hopefully we will be able to rent it out and if not we hold on to the house - pay the taxes every year - and then in a couple years sell the house for a profit (i cant see the property going below 5k$). And in the end its only $5K to say we own a house. Any suggestions on what to look for in buying? The downsides? Thanks I also just found out that this house sold for 50K in 2008. Atleast, this is what Domania.com said. In the ghetto-- We talked to the agent yesterday. They are trying to get $9,000 for it. Close - St. Louis, MO haha

Public Comments

1. Tell me where I can buy a house for $5k please.
2. you better get a complete professional house inspection and make sure there are no major issues like a leaking roof, or termites or a non-working furnace and any other problems that will cost more than you have to fix. If the house is selling for 1/5th of what it did last year, there must be major problems with it - and there is no doubt you will make a profit in only 2 years, after deducting closing costs and real estate agents selling commissions, etc - "trial and error" fixing up could cost you a fortune. I bought two houses for investment purposes last year - $20,000 & 22,000, but they were in depresses caol region areas where that is the going price and I checked them out thoroughly before buying
3. With the property tax you quote, it has to be in the most undesireable neighborhood on the planet. Let me guess: Somewhere in Detroit? Or the state of MI? Just because it sold for 50k in 08 doesn't mean it is worth that now. Downside: If it IS where I think it is as far as neighborhood, if you leave it vacant, expect it to be vandalized. Also, if you aren't brave enough to live there yourself, imagine the type of people who WOULD rent from you.. I wouldn't do it.