Craig-These are good starter rehab homes, because they are basically "lipstick" rehabs and do not require much more than carpet, paint, fixtures, etc.You do not see big margins on them, but you should be able to burn and turn and make your money with volume.

There are so many home in memphis that are 40 to 50 cents on a dollar that just need lipstick.

Changing the counters, or sink (farm sinks get scratched up easily on the front when people are wearing belts) would be like putting lipstick on a pig.

Most owner occupied homeowners do not want a major project, so the lipstick and mascara rehabs go fast.Also, Fannie and freddie will actually rehab some of the properties (to a slight degree) in order to sell to owner-occupants.Lastly, if an easy rehab gets listed, there are a ton of agents sharking the MLS for light rehabs.

If the improvements are cheaper and what you find in a rental you might have to put a bunch into the property to sell it diminishing your returns or reduce your price substantially.The number one problem I see hands down is putting the wrong tenant in and not setting up the lease correctly.I am amazed by some landlords on how they qualify tenants and run there business.They don't qualify tenants and then the property gets run down and rather than fix it up again the landlord puts lipstick on it and reduces rent some to get another shady tenant in and they are out in a few months.Your property then starts to cycle down in condition and tenant quality in a spiral.

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.

The less scrupulous will "put lipstick on a pig" and focus on just making a property look as good as possible for as cheap as possible.

Sometimes he has walked away from a property, had IRS liens, or done a lipstick job on a property with serious problems. 

If I were a tenant, I would wonder what kind of pig the staging lipstick is covering. 

The rehabbers around me tend to like the lipstick on a pig flips where they can paint and carpet and move on.