[Justin S]

Institute Seminars (Robert Allen) smart/stupid? Basically, high level description of the strategy is:1) Buy foreclosures cheap (50-90% off)2) Rehab the property using contractor and project manager3) Rent property w/ use of property manager4) Refinance to appraised value which would give you instant equity and extra capital Example:1) You buy a property w/ asking price of $50K for $25K.2) Invest another $25K for rehab. Rehab done be contractor while being managed by project manager.3) Hire property manager to find tenants and manage property.4) Property is appraised to $100K and you refi for 65% LTV, giving you an extra $15K as tax free capital. You'll be needing to find inspectors, contractors, project managers, property managers, etc. With the high abundance of foreclosures (REOs), is this strategy now really realistic? Is this something someone might be able to do on their own?