Saying you can buy a 100k home, put lipstick on it, get a premium rent and justify a future price of 120/125K.

Plus she is paying top dollar, so the area has to apprecate faster than her house becomes dated.We buy short sales, good bones in great houses that need "lipstick".

The value is also considered compared to similar assets in similar condition, the reason for comps.The reason MH dealers are in a position to rip off unsophisticated buyers is due to several issues. 1. an appraisal is never used in seller financing these old rehabs, or throwing lipstick on and 2, The value is not easily ascertained by the public.

Lipstick (i.e., paint and carpets) for a half million dollar, 8000 sq.ft. house could easily be $15k20K.

Scroll to the bottom:https://www.biggerpockets.com/forums/432/topics/763013-syndications-adding-value-seems-more-like-lipstick?

Like a pic of pig with lipstick on a postcard that says "Don't dress it up - sell your house for CASH right now!"

There are a lot of people out there who put lipstick on a pig and market it as "turnkey"

I am looking into properties needing $3-5k worth of work (mostly lipstick on the pig type of work) so lead time to get the property ready once purchased should be 2-3 weeks.

I agree with @Tim Stover if you can get in/out quickly, it can make sense with a lipstick rehab.  

 $31k for literal lipstick is the stuff dreams are made of!