Profitable house problems

[Hal Cranmer]

Hi. I know many people look for distressed properties in order to fix up and flip. But many of the problems with properties end up costing more than they are worth. So I thought it might be good to get investor opinions on what are the most profitable 'problems' with a property. In other words, what are the problems that drive most buyers away (and thus help lower the price) but are easy fixes that can result in big profits? One of my favorites is cat urine. Yeah you have to rip up the carpet, bleach the floor and seal with Kilz, but this only costs $100 or so + flooring. However, if you have to rip up the flooring anyway, the smell of cat urine normally turns most buyers off.
I should know. I had a renter with a cat who ruined my carpets. Before I took out the carpets and treated the floor, most people who saw the place turned right around and walked out. After sealing everything up, it rented in 24 hours. Anyone else have some good 'problems' to look for? Thanks.

[Brian Levredge]

Removing non load bearing walls is an easy one. Most people like an open floor plan and too often, older homes have a kitchen that is divided from the living room, dining room ,etc. This is something that might cost a little more than you were thinking, based on your example but it is still relatively cheap to do, takes very little time, and provides a great WOW effect to potential buyers. Of course, you want the kitchen to look nice as well.

Painting over old tile and tubs in a shower is another one. Many people assume you have to replace both, which can be pretty expensive, especially in CA where I live. However there are companies that will come out and for a few hundred bucks, you can have your whole bathroom looking like new.

Some funny replies here to the urine issue. On that note, getting a bug sprayer from Home Depot and filling it with water and bleach and going over the affected areas will also do the trick once you've removed the damaged elements.