DOWNSIDES of buying a bad fixer upper? $50 K House in Jackson, MI

[Chanel Pearson]

Hi Everyone!

I've spent the last few years watching and being inspired by Bigger Pockets. I am a dual citizen, and find Canadian real estate is just too expensive.

There are really cheap duplexes in the US, such as Jackson, MI (and other states) - there are fixer-uppers, some as low as 18 K. I know a lot of these houses are in cheaper neighbourhoods - but if the house is the worst one on the block and just needs TLC - why are these houses not being scooped up? What am I missing? I remember distinctly in some BP videos how they talked about buying low, fixing, and renting out - buying the worst house on a nice block.

My plan is to buy, and fix up - live in one side and rent out the other as a very very beginner. Is this likely a bad move for a beginner, as it could go all haywire with fixing? I don't want to get in over my head either - but I have lower savings and won't be approved for something over 175K.

Thanks for any insight!!