What kinds of property may be 'flipped'?

What kinds of property may be 'flipped'?

Michael Corbett (Real Estate Expert) gives expert video advice on: What is real estate development, or 'flipping'?; What is 'real estate speculating'?; Who can engage in real estate flipping? and more...

I talk about, when looking for a flipped property, there are three different kinds of properties that are out there. And they're all under “the fixer” category. They may be condos. They may be co-ops or they may be homes. Or they may be town houses. But they're three different kinds of “fixers”. One is a cosmetic “fixer”. One is a “tear-down” and one is a “downright ugly”. Now you don't want to buy all three of those types of “fixers”, you really only want one. The cosmetic “fixer” may sound really appealing because you think “wow, just a little fluff and clean it up”. But the problem is when you're buying a cosmetic “fixer”, it's really not being sold at a reduced enough price to actually allow you to make any money when you flip. Everybody knows that they can go to a home improvement center, fix it up in a couple of weekends and it's done. The “tear-down”, obviously, you don't want that because you don't know what the problems are. It could be geological. It could be structural. There could be mold. There could environmental or drainage. You don't buy a “tear-down”. The one you want is the “downright ugly” because when you walk in and any other buyer walks in at the moment they going to go “This is downright ugly”. But in my book, for example, that‘s how I teach how you can actually find the house with the right things wrong. It's going to be the “downright ugly” house.