In my local market, I see a number of out of state investors over pay for turnkey properties in which providers have simply "put lipstick on a pig."

I learned my lesson on that one.. you really need a deep dig into your asbestos rules.. nothing says you just don't leave it in place if you don't touch it.. its when you go to remove it thats an issue.but these are what your looking at with distressed assets and you just have to pay accordingly.. no old fixer is going to be just lip stick other wise it would not be value add..  

Looks good for about a $90,000 profit with just lipstick upgrades based on comps.

So sometimes they pick the cheapest materials or cheap contractors to put lipstick on a pig.

As a flipper I've seen how many just slap lipstick on a pig but don't fix structural issues, electrical and plumbing issues so you definetly want to skip this pitfall.

I'm not necessarily saying that this property will fall into Ben's "lipstick on a pig" type even if the true value of it is $40. 

So, always throw lipstick on, clean it, change light fixtures, paint something, get rid of trash and trim bushes, whatever, the more you touch it the less "liability" you have in your dealings. :)  

Lastly, if it were me, i would be asking the agent to look for properties requiring some heavier repairs/upgrades needed, just doing paint and carpet (lipstick fixes) these days do not have enough spread in them to make money.

they bought it for $9300 it could probably take a coat of lipstick and then the pig would be worth low to mid 20s, maybe even low 30s if they sell it lease purchase or land contract.  

I say minor repairs because this only really needs some lipstick to make it comparable to all the other comps.