The signs of neglect like bad paint, stinky carpet, holes in the walls or (heaven forbid) termites will turn off 95% of prospective buyers. All of these inflictions on a once beautiful home are purely superficial, and if you have the foresight to see beyond them, you can build wealth fast in real estate.
Put in a few thousand dollars, and this house will be a beautiful home again; your investment will increase in appraised value many times more than what you put into the repairs. Unlike "reality TV" shows like Flip That House, this I know from personal experience. Trust me.
Have a look at the following example.
I purchased this house as a bank pre-foreclosure at $35,000 below market value. Many of the houses in this neighborhood are built as cottages, and I saw tremendous rental potential for the property once it was fixed up. I knew it would be a cute rental home for a small family or couple, especially given its proximity to employers, retail shopping and restaurants.
The backdoor, much improved...