It sounds like risky business, but with Aussies able to pick up homes for as little as $30,000 there are plenty that are happy to keep on buying.

Imagine owning your own little slice of American pie, at a fraction of the price.

That’s exactly what Melbourne-based Steve Mcknight has. He purchased a home in Florida - his favourite state to invest in - for $12,500. He then spent $13,000 fixing it up.

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The total cost was $25,000. The rent is $900 a month. That’s a return is 42.3 per cent.

"Prices in the US at the moment are down about two thirds in some of the really bad states, and heading lower," McKnight said.

The investing expert from Property Investing has just returned from yet another tour of US cities, reviewing the best buys - and he's not alone.

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"There are a lot more people doing this than you might think. A lot of them are quietly just going over and buying two or three or four properties at a time, but I know of about 50 to 60 Aussies doing this fulltime right now. They’ve hopped across the pond, making their fortune," McKnight said.

"I’m not expecting us property prices to go up anytime soon. What I'm investing in the US for is the cash flow, and then eventually prices will recover, but it's probably not going to be anytime in the next five years. So the real attractive proposition for investing in the US is not capital gains, it's cash flow."

So where should you buy? What should you look for? What are some of the problems you’ll need to overcome? And how do you get the loan for a US property?

Mark Benardi is a real estate agent in California, specialising in foreclosed homes. Right now, that's a booming industry in the United States.

"Especially with the interest rates under five per cent, you'd be foolish not to buy, beg, borrow and steal to get into a place, because this is the time you're going say ‘I wish I would have bought now’ - this is absolutely an opportunity," Benardi said.

Median house prices across the US have fallen 30 per cent from their peak a few years ago. That’s due mostly to people losing their jobs and not being able to make the payments.

Right now, there are twelve million homes that have been foreclosed or that are about to be ready to go on the market - that's a flood new property about to come crashing down. And that is what’s pushing prices down and within reach of Australian investors.

Depending on what you’re looking for in an investment, can determine where you should buy.

Florida is ideal for super cheap, rentable homes that will give you a source of income. Nevada is awash with discount dwellings, and Las Vegas is America’s foreclosure capital. Texas too is awash with cheap homes, as is Nevada, and a host of other states.

Then there's California - home to Hollywood, where a whole new genre of dreams is coming true - for example, owning a home away from home.

California has fared better thanks to strong tourism, strong rental demand and, of course, location. Yet, even the ‘golden state’ has been tarnished by foreclosures, delivering the best bargains in a generation.

McKnight does warn however that "you should never, ever buy a property just because it looks cheap on the internet."

• Find out what taxes and charges you'll have to pay - they're all different in different us states.
• Find a property manager you know you can trust to run things over there for you.
• Check how much tax you'll have to pay and whether you pay it just in the US, or both there and here.
• Make sure the foreclosed home you're buying has only one mortgage, or you could find yourself with just a piece of paper, and owing a fortune.
• It's best to physically see your property for yourself before handing over your money.

• Steve McNight Property Investment - www.propertyinvesting.com
• Mark Benardo Real Estate - www.markbenardo.com
• House Hunting Safari - www.househuntingsafari.com