Picking up the property in distress and fixing it up offers an opportunity to get some, most, or all of your capital back at the refi table.Here is a very simple deal to play out how it works. 

Usually when I purchase a property I buy them in distressed and gut the inside. 

For example, my "Buy Box" is single family homes (at least 2bedrooms / prefer 3bedooms, turn-key ready (no rehabbing needed), in military towns.Property Type: Single Family / Multifamily (duplex/fourplex)Bedroom Count: 2bed/3bed, etcCondition: Distress (rehab needed) / Turn-key (no rehab)Location: Towns/States/Cities I hope this helps!

so that typically means you're either (1) starting with a pretty distressed property, or (2) finding something where you can add bedrooms and bathrooms.a cosmetic rehab generally doesn't cut it whether you do the repairs yourself or hire them out.

Hi all,We have been investing in real estate for 15+ years and have acquired over 100 distressed properties, rehabbed and mostly have held as rentals, but have flipped many as well. 

The property is still in distress and I put it on the market to sell.

Typically, those sellers are not as motivated or distressed as the ones in our cash sales.

Look for distressed properties or outdated homes that can be renovated and sold for a profit.

Are you able to source a distressed property where you can significantly boost the ARV and buy it with cash or hard money?  

the best way to buy something at a discount is something in some kind of distress.