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Daily Real Estate News | October 21, 2009 | Investing May Require Handiwork
While flipping properties for profit is pretty much over, a few hardy investors are persevering by working as de facto contractors. They're snapping up cheap homes in disrepair, hoping to clear a high enough price after renovating to make back their costs plus a gain.

But experienced rehabbers say it's no road to easy profits (and you'd better be handy). "These are not home-run deals, but they pay the bills," says David Short, an agent and investor in Indianapolis.

Virtually unheard of low prices are showing up everywhere, and especially the Industrial Midwest. From Detroit to Cleveland, buyers are pursuing deals that could produce rental income.

The prospects in warm-weather former boomtowns are more speculative. Except at the low end, prices are still high enough that you're betting on a future boost in value, in addition to the rent, to earn a decent return soon. Even so, there's plenty of interest. "At least 25 percent of our buyers are investors," says Las Vegas real estate agent Paul Bell.

Source: Money, Amanda Gengler (10/21/09)