Lipstick on a pig.

Almost every multi family can use some type of lipstick stuff which I would not consider any major form of value add, but just common sense.

@Mikael Winkler Aside from different thresholds from different people mentioned above by Joseph, much of the reason for this occurrence you stated in your post is the fact that our current market conditions in many areas of the country are highly competitive and finding the easier lipstick deals are few and far between so investors must adjust their strategy to include heavier rehabs and perhaps additions to create enough spread in the deal.

Say I buy a house for 100k (arv 200 -225needs 20k worth of work) I give my house some lipstick and now it’s worth closer to 225k.I thought about owner finance w down payment.  

This is my very first BRRRR although I have several rentals already but they were more paint and lipstick projects.   

Sometimes you need to pour alot of money into the rehab and sometimes you just need to throw up some lipstick. 

Small flips are typically viewed as light rehabs, mostly lipstick stuff where has a heavy rehab would be a full gut rehab where you took it down to the studs or at least to the drywall and perhaps moved walls, added walls, added rooms, etc.

As far as agents, many will sell you lipstick on a pig in a heart beat, they are looking for a commission, you need a realtor who owns rental property, will analyze the condition when you walk through it with you, can go over your number analysis with you and is a strong negotiator.

Wood filler in these areas is likely not going to cut it and is a lipstick fix to a problem that could come back and bit you, fix it now while it is all open and before you have put done finish products like flooring.

Or maybe they put lipstick on a pig and you have serious hidden problems.