A. Purchase a home that is at least 33 % below the market value of comparable nearby homes.

B. You must attempt to choose a location with low crime rates, very good schools.

C. Home with 3 or 4 bedrooms. Smaller homes are unlikely to have enough buyer appeal.

D. Don't buy homes with major repairs.. such as bad wiring, plumbing, foundation concrete-repairs, large kitchen and bathroom renovations.

E. Target profitable cosmetic improvements like fresh painting outside and inside, light fixtures, carpets and easy flooring work... and add fresh new flowers.

F. Look for affordable, low down-payment financing, such as taking over an existing mortgage, lease with option to buy, seller carry-back financing, or a combination.

G. Avoid obtaining new bank financing until the fix-up work is completed and the home’s market value has increased.

H. Don’t buy a fixer-upper that is more than 60 minutes from your current residence because it is important to visit everyday while the renovation work is being done.

I. Make sure that the seller or tenants will vacate immediately upon transfer of title.

J. Look for sellers who are motivated to sell and who want to make the sale happen.