The astute and experienced investor will be able to easily see the true potential behind fixer-uppers that others may have unwittingly passed by, honing in on those properties with hidden value masked behind years of neglect or an unkempt appearance, both inside and out. As a general rule you'll want to avoid homes that are completely un-renovated, whether they're in good condition or not, and instead, focus on those that have already been lived in and are in sore need of a few repairs or a bit of TLC.

Selecting the Right Property in the Right Neighborhood

After you've settled on a basic geographical location for buying fixer-uppers, then renovating and reselling, you'll want to become an "area specialist" before even attempting to pore through the many listings. Learn about the schools in the neighborhoods, the proximity to shopping and other related facilities, and find out what the average price of the homes are that have sold in the last year.

Realize that not all fixer-uppers or all types of dwellings make the best of investment properties. Using a basic, two-step selection process you'll be able to avoid the common mistakes that first time resellers or rehabbers make, with the first step being to choose a property that's appropriate for the area in question, meaning if most of the homes in the neighborhood are brick colonials, you won't want to zoom in on the one modern ranch style house, as more than likely, people are drawn to a certain neighborhood because of its overall architectural style.

Next, look for those fixer-uppers that need only cosmetic work done to them as opposed to those that will need some type of major structural repair. Houses that are less than aesthetically pleasing should be viewed as a great challenge, provided the foundation and the rest of the home are structurally sound, of course.

Also, it only makes sense to investigate as to the crime rates in a neighborhood before investing money in a property that you won't be able to resell if it's a high crime area, along with being saddled with high insurance rates as well. This isn't to say an expensive neighborhood at the other end of the spectrum is guaranteed to be a sure thing either as they too come with their own set of unique risks to consider, such as the inflated cost of just about everything from renovations to taxes to permits and contractors.



Sal Vannutini is the author of " The 8 Power Profit Secrets To Making More Money With Less Risk In Real Estate, " a free strategy report for investors. Get your complimentary
copy at www.FastFixerUpperProfits.com today.