Three units, currently rented for $1175 as section 8, will rent for $1950 once I change the tenants out. Paid cash. Amazing.

I went to the foreclosure auction of a mid-sized local landlord today. Twenty properties valued between $75,000 and $120,000 (if they were in good repair -- which some were, some weren't) were sold between $17,000 and $37,000 each.

Now, these properties all had crappy tenants in them, were dirty, and were pretty beat up, but they were not bad properties. The one I had has already been repaired to meet code, except for some peeling paint on the soffits and the porch. When I got out there -- I was amazed how nice the property looked.

Is this where property values are headed, I wonder? No one seemed to be buying unless they were buying for cash.

The whole experience just blew my mind.