Is it worth it to buy a house in bad condition and renovate?

[Galit Garsiel]

When buying a house in a horrible condition that needs plenty of fixing, will the cost of the renovation be as high as the cost of buying a better house that doesn't need fixing?

Say I want to buy a house to rent it out. If I buy a derelict house, fix it up until it can be rented out at a certain price, say 700$, or buying a house in good condition that can be rented out at 700$ without renovation? What costs less? What is more profitable?