How to Track Down Foreclosure Properties

A good source of data on repossessed homes being sold by the U.S. government is the Web site of the Department of Housing and Urban Development (www.hud.gov). Information on available homes is updated weekly, HUD says. While the pursuit of foreclosed properties is highly competitive in some markets and no sure ticket to riches. A good rule of thumb is to invest in houses only if you're confident you can make at least a 15% to 20% return on your money. Be sure to allow for the costs of rehabilitating and selling a house. Aside from the cost of buying and fixing the house, you need to tot up the likely cost of financing, insurance, taxes and any brokerage commission on your eventual sale of the property. It's not as cut-and-dried as you might be led to believe, but it can be very profitable if you get it right.