You can only put so much lipstick on a pig.

Rents are just about at market rates (slightly less) but I love the idea of a little lipstick and curb appeal to possibly maximize them a little more.  

The 12-unit has been 75% renovated - though after the walk through, I would classify the renovation as lipstick and heels - the building itself is still as inefficient as when it was built 35 years ago.  

@Neil Aggarwal Hey, I have a deal, nice 12 unit spot, $120,000, assume that is full market value, cap rate is pencils out to 11.5%, walking distance to the university, nice area, Seller will carry a second at 35% for me, you interested in taking the first at 65% LTV with 12% ROI and a 49% equity position, I won't have a dime in it, but will do the deal and manage it, If you want out after a year I'll take you out and payoff your first (I'll have your note purchased at par at the UPB) I can guarantee occupancy for 5 years, will add lipstick to it over the term with my cut and we will sell in 2020.

I turned it around on the cheap (lipstick on a pig) & sold it for double two years later.

These are your bread and butter, lipstick fixes 5 to 10% profits plus your labor.

Maybe the person advocating this approach only does "lipstick" rehabs :)If not, then anything structural will blow his budget.

Some individuals wish to only put lipstick on the beauty and others want a complete makeover.

How about this one Jay, "Once in a lifetime opportunity to enter our elite members list where only the best deals by our developers will be presented to you" $5,000 to join haha What a joke Most are lipstick on pigs and come with $20,000 - $30,000 margins.

If one of you wants to do quick lipstick flips and another wants to buy 100 unit apartment complexes it's not going to work out.