you might check out hudhomestore.com. It is the clearing house for the Housing Urban Development arm of the federal government where they sell off their inventory from repossessions and such. They sell their inventory in three waves. Wave 1 is reserved for federal agencies and non-profits. Most inventory passes through this wave untouched. Wave 2 is for homeowners - people who intend to live in the home and likely will be getting financing for it. A lot of inventory passes through this wave as well, because most people have no idea that this site exists. Wave 3 is where investors can get in on the action and frequently, this is where HUD sells the homes at huge discounts (20-50%+).

The interesting thing here is...HUD hates to sell these homes to investors. HATES it. Their objective is to get home owners in these properties. If they are willing to offer discounts to investors, then they are even more willing to offer discounts to homeowners. Some homes need some repair (and HUD is very good about noting this and offering allowances [cash back at closing] so you can get it fixed). But a lot of homes need very little work and are ready to move in (HUD goes through and cleans the homes and gets them ready for sale). You bid on the homes, but it is not like an auction where you have to pay immediately. You can get financing to pay for a winning bid. So it is not unreasonable to imagine you can pick up a home at a discount and start off with tens of thousands in equity right off the bat (no PITI!). Markets vary as to how much is available and unfortunately, Utah is a market where the HUD inventory is weaker, but it is still worth a shot depending on where you are looking to check it out. Remember, HUD WANTS to sell to homeowners and the discounts they offer an investor (which may be more or less depending on the market), they are likely willing to offer you as well. A HUD certified Realtor could probably give you an idea of what discounts HUD would be willing to take and the site has a list of Realtors who qualify.