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I have a couple of really important questions before I move ahead with foreclosure buying. First, my "subject"....gaining from someone's hard luck. Is it really? Am I an "ambulance chaser" when I check out the default listings? I spent some time today reading desperate letters on this website from poor folks being foreclosed on. It breaks my heart as it could happen to any of us under unexpected circumstances. If I can get over that moral issue, my second really big question is this: With about $415,000 equity in our current home, we recently obtained an equity line of credit for $200,000 with the plan to purchase one or two foreclosed properties in Texas (you can pick up houses there for $50-70,000. I have very good friends in TX who do this for a living and are willing to guide me through our first acquisition. (I have been studying alot in the past few weeks and attended several auctions for practice) They are very precise and have it down to a science I think!
Lastly, and probably more important, the reason why we have decided to try something like this to have a residual income (rentals) is because my husband's work is so sporadic (freelance) that some years he makes a very good salary then doesn't work for 3 months, or more. If we had another consistent income, we would have the pressure off during the down time. Does it make any sense to do this or are we setting ourselves up for a foreclosure situation down the road? We are very frugal and conscientious so this seems like a tremendous leap for us but seems like the best way to invest at the moment. Can wait to hear comments.