Nationwide · Off the MLS

Discounted Houses for Sale: Cheap Houses Before They Hit the MLS

The deepest discounts rarely show up on Zillow or the MLS. Instead, ForeclosuresDaily.com finds owners under pressure to sell, such as heirs, divorcing couples, and owners behind on taxes, so you can buy discounted houses at wholesale pricing before they are advertised.

Pre-foreclosureProbate & pre-probateDivorceTax delinquentAbsentee owners

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Top 10 states for discounted houses
$419,250
Median listing price
1,161,615
Active listings in the U.S.
61 days
Average time on market
$223
Median price per sq ft

Market data: Realtor.com U.S. housing market, October 2026.

Carolynn Castillo, ForeclosuresDaily.com customer

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Listed and sold 25 properties and personally bought and sold four fix-and-flip properties, all generated from probate leads.

Carolynn Castillo
Realtor & Broker · eXp Realty

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Cheap houses for sale

What makes a house discounted?

A discounted house is usually a distressed one: the owner needs to sell fast because of a missed mortgage payment, an inherited home, a divorce, unpaid property taxes, or repairs they cannot afford. In other words, speed and certainty matter more to them than top dollar.

The median listing price in the U.S. is near $420,000, so a few points of discount decide whether a flip pays. Generally, those points come from motivated sellers whose property is not publicly advertised for sale and not listed on the Multiple Listing Service (MLS). Because there is less competition, you can negotiate wholesale pricing instead of bidding against retail buyers.

Across the U.S., Realtor.com counts about 1,161,615 homes for sale, each on the market an average of 61 days. In addition, the states in this guide were chosen for their lower entry prices, led by Michigan, Ohio, and Alabama.

Discount House real estate investors finding off-market deals
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Shannon Thompson
Investor · Joe Homebuyer of Atlanta

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Step-by-step

How to find discounted houses

Foreclosure listing sites show homes after the bank or auction is involved. Therefore, to find a deal first, work earlier in the timeline:

Pick your states

Initially, start with a few states where you know values and have cash buyers ready.

Choose lead types

Next, pick your leads, because probate, pre-foreclosure, divorce, code violation, and tax delinquency leads each signal a different reason to sell.

Use fresh data

Then use ForeclosuresDaily fresh leads, which are updated daily, so that you reach owners before other investors mail them.

Target your marketing

In addition, data targeting your marketing means mail, calls, and texts go only to owners with a real reason to sell.

Run the numbers

After that, estimate the after-repair value (ARV) from nearby sales, and then apply the 70% Rule.

Make a fair offer

Finally, solve the seller’s problem with a quick, as-is cash close, then wholesale or flip the property.

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Andrew Litchfield
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Andrew Litchfield hosted a ForeclosuresDaily.com monthly webinar for real estate investors.

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Targeted real estate lead generation

Motivated sellers who want to liquidate fast

For this reason, ForeclosuresDaily.com’s off-market real estate platform covers every major distress signal in every state, cross-referenced with tax rolls and property appraiser records.

Probate LeadsExecutors who must sell before the estate can close.Get probate leads →Pre-Probate LeadsFamilies who may sell before a probate case is filed.See pre-probate leads →Inheritance LeadsHeirs who want to sell because they will not keep the home.View inheritance leads →Foreclosure LeadsOwners behind on payments who want to sell before auction.Explore foreclosure leads →Divorce LeadsCouples who must sell when they divide shared assets.Find divorce leads →Eviction LeadsTired landlords who want out because of problem tenants.Browse eviction leads →Code Violation LeadsOwners facing fines because of open violations and costly repairs.Check code violation leads →Tax DelinquencyOwners behind on property taxes who need cash soon.Target tax-delinquent owners →Absentee Owner LeadsOut-of-area owners, especially those far from the property.Reach absentee owners →Life Leads & FSBOOwners selling on their own rather than with an agent.Shop all lead products →
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Anthony Coletti
Real estate investor

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Find a deal

ARV and the 70% Rule for U.S. flips

Real estate flippers and wholesalers use the after-repair value (ARV) to set their maximum offer. For example, the 70% Rule says to pay no more than 70% of ARV, minus repairs. As a result, that margin covers holding costs, closing costs, and profit for property flipping, or your assignment fee when you wholesale.

For instance, here is the math using the U.S. median listing price as the ARV and an 8% repair budget.

70% Rule example

ARV$419,250
70% of ARV$293,475
Estimated repairs− $34,000
Maximum offer$259,475
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States

States with discounted houses to target

These states have some of the lowest median listing prices in the country. Next, choose a state from the menu to open its investing data.

OhioBelow U.S. median$289,000Flip & wholesale

Ohio market snapshot

$289,000Median listing price
$169Price per sq ft
43 days ▲ 8.1%Days on market
$1,300 ▼ 3.7%Median rent
54,317 ▲ 6.8%Active listings
5.4%Gross rent yield

In addition, the Zillow Home Value Index is $248,803 (up 3.4% from a year earlier) as of August 2026.

Homes sell faster here than anywhere else on the list. Also, inventory is up 6.8% from a year earlier. As a result, lower prices keep your cash needs small for wholesale deals and light flips.

Max offer when the ARV equals the median price$289,000 × 70% − $23,000 repairs = $179,300 max offer

Also see the full Ohio market report on Realtor.com →Then view Ohio homes on Zillow →

MichiganBelow U.S. median$300,000Flip & wholesale

Michigan market snapshot

$300,000Median listing price
$189Price per sq ft
43 daysDays on market
$1,500 ▼ 4.8%Median rent
61,728 ▲ 9.3%Active listings
6.0%Gross rent yield

In addition, the Zillow Home Value Index is $266,292 (up 4% from a year earlier) as of August 2026.

Prices per square foot run higher here than anywhere else on this list. Also, inventory is up 9.3% from a year earlier. Therefore, entry prices here leave room for an assignment fee or a quick flip.

Max offer when the ARV equals the median price$300,000 × 70% − $24,000 repairs = $186,000 max offer

Also see the full Michigan market report on Realtor.com →Then view Michigan homes on Zillow →

IndianaBelow U.S. median$299,900Flip & wholesale

Indiana market snapshot

$299,900Median listing price
$163Price per sq ft
50 days ▲ 8.7%Days on market
$1,495 ▼ 6.6%Median rent
39,007 ▲ 6.4%Active listings
6.0%Gross rent yield

In addition, the Zillow Home Value Index is $260,095 (up 3% from a year earlier) as of August 2026.

Inventory is up 6.4% from a year earlier. For this reason, cash buyers look for homes at this price point, so wholesale deals move quickly.

Max offer when the ARV equals the median price$299,900 × 70% − $24,000 repairs = $185,930 max offer

Also see the full Indiana market report on Realtor.com →Then view Indiana homes on Zillow →

AlabamaBelow U.S. median$330,900Flip & wholesale

Alabama market snapshot

$330,900 ▼ 1.2%Median listing price
$167Price per sq ft
68 days ▲ 1.5%Days on market
$1,550 ▼ 3.1%Median rent
48,147 ▲ 3.4%Active listings
5.6%Gross rent yield

In addition, the Zillow Home Value Index is $241,613 (up 1.9% from a year earlier) as of August 2026.

Median prices are higher here than anywhere else on this list, so one deal can carry a big margin. Meanwhile, the median price is down 1.2% from a year earlier, and inventory is up 3.4%.

Max offer when the ARV equals the median price$330,900 × 70% − $26,000 repairs = $205,630 max offer

Also see the full Alabama market report on Realtor.com →Then view Alabama homes on Zillow →

MississippiBelow U.S. median$295,000Flip & wholesale

Mississippi market snapshot

$295,000Median listing price
$151Price per sq ft
73 days ▲ 4.3%Days on market
$1,595 ▲ 14.3%Median rent
21,969 ▲ 5.1%Active listings
6.5%Gross rent yield

In addition, the Zillow Home Value Index is $197,606 (up 2.3% from a year earlier) as of August 2026.

Rents are high compared with prices here, especially for buy-and-hold investors. Also, inventory is up 5.1% from a year earlier.

Max offer when the ARV equals the median price$295,000 × 70% − $24,000 repairs = $182,500 max offer

Also see the full Mississippi market report on Realtor.com →Then view Mississippi homes on Zillow →

ArkansasBelow U.S. median$320,000Flip & wholesale

Arkansas market snapshot

$320,000 ▲ 4.9%Median listing price
$167Price per sq ft
65 days ▲ 1.6%Days on market
$1,500 ▲ 0.3%Median rent
32,848 ▲ 13.6%Active listings
5.6%Gross rent yield

In addition, the Zillow Home Value Index is $227,264 (up 3.6% from a year earlier) as of August 2026.

Meanwhile, the median price is up 4.9% from a year earlier, and inventory is up 13.6%.

Max offer when the ARV equals the median price$320,000 × 70% − $26,000 repairs = $198,000 max offer

Also see the full Arkansas market report on Realtor.com →Then view Arkansas homes on Zillow →

OklahomaBelow U.S. median$299,000Flip & wholesale

Oklahoma market snapshot

$299,000 ▼ 0.3%Median listing price
$163Price per sq ft
62 days ▲ 6.9%Days on market
$1,299 ▲ 1.9%Median rent
37,195 ▲ 4%Active listings
5.2%Gross rent yield

In addition, the Zillow Home Value Index is $223,261 (up 2.8% from a year earlier) as of August 2026.

Meanwhile, the median price is down 0.3% from a year earlier, and inventory is up 4%.

Max offer when the ARV equals the median price$299,000 × 70% − $24,000 repairs = $185,300 max offer

Also see the full Oklahoma market report on Realtor.com →Then view Oklahoma homes on Zillow →

KentuckyBelow U.S. median$310,000Flip & wholesale

Kentucky market snapshot

$310,000Median listing price
$174Price per sq ft
54 days ▲ 5.9%Days on market
$1,395 ▼ 0.3%Median rent
30,102 ▲ 11.9%Active listings
5.4%Gross rent yield

In addition, the Zillow Home Value Index is $232,577 (down 0.4% from a year earlier) as of August 2026.

Inventory is up 11.9% from a year earlier.

Max offer when the ARV equals the median price$310,000 × 70% − $25,000 repairs = $192,000 max offer

Also see the full Kentucky market report on Realtor.com →Then view Kentucky homes on Zillow →

West VirginiaBelow U.S. median$259,900Flip & wholesale

West Virginia market snapshot

$259,900 ▼ 1.2%Median listing price
$146Price per sq ft
57 days ▲ 12.8%Days on market
$1,297 ▲ 8.1%Median rent
10,614 ▲ 2.5%Active listings
6.0%Gross rent yield

In addition, the Zillow Home Value Index is $179,496 (up 3.1% from a year earlier) as of August 2026.

Entry prices are lower here than in the rest of the group, so it fits wholesaling and first flips. Meanwhile, the median price is down 1.2% from a year earlier.

Max offer when the ARV equals the median price$259,900 × 70% − $21,000 repairs = $160,930 max offer

Also see the full West Virginia market report on Realtor.com →Then view West Virginia homes on Zillow →

IowaBelow U.S. median$285,000Flip & wholesale

Iowa market snapshot

$285,000 ▲ 0.7%Median listing price
$175Price per sq ft
58 days ▲ 3.8%Days on market
$1,100 ▼ 7.2%Median rent
23,990 ▼ 0.3%Active listings
4.6%Gross rent yield

In addition, the Zillow Home Value Index is $239,547 (up 3.5% from a year earlier) as of August 2026.

Meanwhile, the median price is up 0.7% from a year earlier.

Max offer when the ARV equals the median price$285,000 × 70% − $23,000 repairs = $176,500 max offer

Also see the full Iowa market report on Realtor.com →Then view Iowa homes on Zillow →

Choose a state from the menu to see its investing data, then compare markets. Market data: Realtor.com, October 2026, and Zillow Home Value Index, August 2026. Also, gross rent yield is 12 months of median rent divided by the median listing price; the 70% Rule example assumes repairs of 8% of the median price.

Antonio Stringfield, ForeclosuresDaily.com customer

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Antonio Stringfield
Probate investor · Los Angeles

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ForeclosuresDaily off-market opportunities before your competition

In fact, since 2004, ForeclosuresDaily.com has helped investors, wholesalers, flippers, and agents reach motivated sellers first.

Not on the MLSHomes for sale privately, before any listing.
Less competitionFewer buyers know the property exists.
Fresh leadsNew records added every day.
NationwideTarget any county or ZIP code.

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Investor · nearly 20 years

Nancy focuses on the best outcome for both the seller and the investor, drawing on nearly 20 years of real estate investing experience.

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Phillip Warrick
Full-time investor since 2003

Full-time real estate investor since 2003, with over 20 years of experience.

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FAQ

Discounted house questions

Where can I find discounted houses for sale?

The best discounts come from owners who must sell quickly: estates in probate, owners facing foreclosure, divorcing couples, and owners behind on taxes. Then ForeclosuresDaily.com finds these owners before the home is listed.

Are cheap houses a good investment?

They can be, if the numbers work. Initially, estimate the after-repair value (ARV), apply the 70% Rule, and budget for repairs before you make an offer.

Which states have the lowest entry prices?

Among the states in this guide, the lowest median listing prices are in West Virginia at $259,900, Iowa at $285,000, and Ohio at $289,000, based on Realtor.com data from October 2026.

Where do homes sell fastest?

Ohio has the shortest average time on market in this guide, at 43 days. As a result, fast markets reward investors who can reach owners before a home is listed.

How do I find distressed properties for wholesale profit?

First of all, focus on owners with equity and a reason to sell quickly. Then run the 70% Rule, and finally line up cash buyers before you sign a contract you plan to assign.

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