Some people like to buy a house that need repairs, and repair the home themselves. The repairs, in turn, increase the value of the home. This is one way to create "sweat equity" in a property.

You can most effectively add value to a home by upgrading the kitchen, bathroom, and finishing the basement. Also, upgrading the flooring, adding wallpaper and applying fresh coats of paint are other examples of how you can make an old home more appealing to a potential buyer.

These types of properties are known as "fixers". Savvy investors will be able to locate below average conditions homes in a good housing market, improve the condition of the home, and turn it to make a profit.

There are many programs available that can give you the lowest payment possible during the time frame that the home will be repaired which can give you substantial savings.

 

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