Experiences rehabbing in tract housing neighborhoods

[Craig M]

The suburbs around Austin are flooded with cookie cutter tract houses. What are your experiences, good or bad, rehabbing homes in areas like this? It seems at any given time you can find 2-3 houses with the exact same floorplan, lot size, features, etc. on the market.

It seems like the increased competition after your repairs can make these properties less of a deal (in general) than others with the potential for greater DOM/holding costs.

Do you tend to stay away from areas like these? Or is the trick to find a certain level of finish out quality that sets your properties apart from the ones next door, without overdoing it for the area?