Such properties are of many types. They may be vacant lands, single houses, apartment buildings, properties for commercial uses and other types of real estates. Generally the owners of such properties do not occupy these apartments/homes, while in some cases, the owner develops a number of apartments and rents them out, retaining one for his/her own use. Such instances includes in house items like shower heads and outdoor pools. By this, whatever money is collected from the rented places covers the mortgage note and the owner is left without a mortgage payment. Finally, after the paying -off of the property, the buyer carries on with the rent-collection as a means to profit-making.
In certain cases, a second investment property or more may be bought by the owner. Here, he/she uses the equity in the first real estate property in order to pay for acquisition of the second and it also serves as collateral security for the loan that he/she has availed against this equity.
Sometimes the owner may be unable to pay his property taxes within the stipulated period of time. This may, in turn, lead to the auctioning of his property. Bidding for such a property is then done by potential investors by first stating a minimum amount that covers the unpaid national government taxes along with incurred interest and fines thereon (these are referred to as Back taxes) and also the sale expenses; leaving enough room for covering the least amount needed for purchase of the property.
When such a property is purchased, it is also called as Property Investment as its purchaser, in most likelihood, will endeavor to sell it again at the market value. In other cases, he may decide to put it up for sale at a premium cost after designing and furnishing it; in short, renovating it as per the preferred choice of the average buyer. A third option that he could opt for would be to rent out the property.