MSN has an article summarizing considerations when buying foreclosed properties. Bottom line:
- you sometimes can buy at 30-40% below market...but most sell at 5% below
- buying directly from a bank is often the least risky way to buy a foreclosure and you often can get other perks viz.
- negotiated lower interest rate (if financing through lender)
- waived closing costs (including title insurance)
- low down payment
- auctions (even HUD auctions) can provide deals...but frequently do not.

My gut feeling is that foreclosures probably are not worth the work if you're only going to get 5% below market in most cases.

MSN also had a good article on how to identify good investment properties. Nothing radically new
- don't overpay
- invest for the long-haul
- factor in how many repairs you'll have to do
- "repairs" are immediately tax deductible
- "improvements" are not....the increase your tax basis (thereby decreasing your taxable profit) but cannot be recuperated until the building is sold
...but a nice informative article.

Traits of a Good Landlord

MSN article on things every landlord should consider

Using your IRA to invest in Real Estate

The Motley Fool has a good article on how you can use your IRA to invest in real estate.

Real Estate Tax Deductions

The Motley Fool has a nice overview of some of the tax benefits available to real estate investors.