Educate yourself well to find undervalued properties that need primarily cosmetic work to bring them up to value.

If you're just painting, doing new floors, and mostly cosmetic work, they most likely don't need a license or permits for that work, but ask the building department.  

I haven't gotten as far as to discuss the details of the large capex items, so mine are certainly just average estimates, but I know they have done some minor cosmetic repairs as they are selling them.  

I don't know your tolerance for rehab work, but the issues with these properties range from moderate amounts of cosmetic work, to having to replace major systems, to dealing with failing structures. 

Really nice (or crummy) kitchens and bathrooms also throw price per square foot right out the window, which is why many flippers will focus on those areas and just do cosmetic work on the rest. 

If your target market is individual home owners and the market is hot and people are routinely paying well above appraisal price, you won't care as much. 

@David Dachtera because it will free up space inside the kitchen and look cosmetically better. 

Later on it gets to be fairly routine.

This was mainly a cosmetic rehab.

The profit would be your selling price, less routine selling expenses less your adjusted cost basis in the property.