I am going to be in the market a year from now, which means I need to learn this now, and start looking in 6 months. It's my understanding that, especially for government owned properties, the process can take forever.

I'm not even completely sold on the idea, but I want to explore it. I have it in mind that I can find the right deal, take equity in the loan to pay for the repairs and upgrades, and do it with an appraisal based down payment (no cash) that I keep hearing about. I am willing to put in the sweat equity for the right deal.

My pipe dream target is an appraisal at $250k, a foreclosure offer at $125k, a loan at $200k, $75k cash out for remodeling and cash to me, and the $50k to appraisal is the 20% down on the loan. I have already located a couple properties that fit that math in theory.

Does anyone have any experience with this?