It sounds too good to be true and it probably is, but it seems that you can in fact buy a house for $1,000.

It is indeed possible!  The First American Real Estate Solutions says that from January to October about 3,800 foreclosed homes sold for $1,000 or less!

It's not quite as nice as it seems, you'll likely have to spend some money on auction fees and 'transaction costs', but it still might be worth your time.

An article even mentions a woman that bought a home for $10!!! She did have to pay off a $2,000 water bill, but it seems that she's pulling in $15,000 a year in rentals from the property, and that's before renovations!