Bottom line is if you can afford the upgrade i think you should go for it.

I had several vacant lots that I couldn't build on because the bottom fell out of the market in 2008.

Since 3 bed/2baths are the most desirable among buyers, I have hired a contractor to turn the bonus space on the bottom level of my home to a 3rd bedroom (an option offered by the builder, but I didn't need it at the time).

I service East Tennessee but would go farther afield if the opportunity was right.Factors like travel, equipment cost, insurance, FAA NAS (national airspace system) research for the prospective area, weather monitoring etc. all take time and money, so I turn down jobs regularly that expect bottom dollar.   

@Charlie Hampton i looked at a few options in Salem with really good cashflow, mainly due to rock bottom purchase prices, but yeah, forget appreciation.

Bottom line is you still have to analyze the deals, but there is a slightly different set of criteria you use. 

You want it for at least 20% below market, which is $132,800.You go through with a contractor and he estimates $20,000 in repairs so you pad it a little and say $25,000 to cover some undiscovered issues.You offer the owner $107,800 and tell them this is your bottom line to ensure you can make the necessary repairs and turn a "reasonable profit."

Taxes seem extremely high changing the bottom dollars when working my numbers. 

This was purchased during the bottom of the Real Estate market crash.

I agree with most of what I've read here, but the bottom line is that you can set rules in place, but you cannot stop smokers from finding their way into your property.