For two years, Christopher Burkhardt paid close to $750 a month to rent a one-bedroom home in Calaveras County, Calif. Like many renters, the 24-year-old was irritated to spend the majority of his income on housing, without the benefits of home ownership or the equity that can come with it.
"It's frustrating because you're not building
Then, late last year, Burkhardt, who works as a landfill maintenance worker, began researching foreclosure properties online. He'd read about the number of distressed homeowners in his neighborhood -- California is the top state when it comes to homes returned to banks due to foreclosure. The state recorded about 260,000 filings in 2008, according to Foreclosures.com.
This month, Burkhardt plans to move into his first purchased home, a 1,000 square-foot two-bedroom foreclosed property he bought for $126,000 in Rancho Calaveras. His monthly payments will come out to roughly $800 a month, slightly more than his monthly rent, but a far better investment."