Typically this seems like their strategy:1) Make an artificially high initial offer2) Lock the property up with an inspection period3) Send out an acquisition agent with a contractor to do an inspection4) Ask for a $20,000-$30,000 reduction at the end of their inspection period5) Also charge the seller a 6-7% fee similar to a commission6) These "hidden fees" don't typically show up on the tax records7) Sell the property after a "lipstick" rehab.

Minor repairs, especially just lipstick repairs like paint and carpet, aren't going to net you the same kind of value increase.

You'll need permits, inspections before starting the bull dozer and you're probably going to have to hire guys in white plastic suits that can rob you based on a license.Same with rehabbing it, I'm not familiar with Jeff City's building permits office but I can assume the attitude would be very similar here, they don't want it there with lipstick, they probably want it gone in that condition.Look to the value of the lot less debris removal costs, that's probably what it's worth and you can get stuck with a lot for years, so you might as well build on it.

So for now I'm focused strictly on lipstick on a pig-type rehabs because of low inventory, scarce labor and high material costs.

Hey guys, as a RE agent and HML in Modesto I can tell you competition is very fierce on "lipstick" rehabs.

At the time I had an agent searching for these "lipstick deals".

Lots of newbies do best with lipstick flips where you're just doing some simple things like paint, flooring and general aesthetics.

I will be moving in, applying some lipstick, and then renting out the two bedroom unit.A little bit about myself: - I work at Oak Ridge National Laboratory, and I have been learning, searching, and saving money for years with which I finally pulled the trigger and invested in real estate. - My one "key" to success on how I was personally able to invest at 22 years old is.... peanut butter crackers.

I fear you might have purchased a home that was a problem home for someone who spent a few bucks to put lipstick on it and sell it to you.

-If you do already have an emergency fund and the $10k is purely for RE investment, I'd target a property that needs a VERY mild lipstick rehab.