I bought a 5-bedroom, fixer-upper home in an old neighborhood that had $2,000 in back taxes owed on it. I paid 500 bucks for a quit claim deed, then sold it on payments to an investor for $7,500 cash–and they must assume the taxes on the deal. I got $1,500 down, and I get $1,500/month until the property is paid for.
I am in the third month of owning this $500 junker, and already I have $3,000 in my pocket. All I can say is $500 into $7,500 is the type of return I like. I prefer larger deals, but when I just need some extra walk around cash, there is nothing like doing a junker house. Cities in the Midwest Rust Belt can really yield amazing deals. Happy hunting!