[quote=sd_matt]From what I’ve read it’s the cosmetic fixers, and not mechanical/electrical fixers that are get the most return for the buck.
Although lately I have seen a fair amount of houses with lots of cosmetic upgrades for good prices (at least compared to a year ago). Maybe this should be what I look for…
Again I’m not looking to flip but rather the best cash flow. [/quote]
I believe that if you want to be a landlord, your best ratio of income to purchase price is generally in cosmetically weak properties. No deeper defects, as they will take away your income stream while the defects are rectified. Best income is from being a slumlord.
The best resale values come from heavily improved properties, provided that the improvements are sufficiently mainstream. Pink marble floors are out; granite countertops are timeless. Buy someone else’s passionate investment.
Tenants will likely not pay for the value of excessive improvements.
Of course, if you can find something that has defects that sound bad but are not really, you can do very well. To do that, you need to attain expertise in repair.
