Why Buy “Beater” Homes
When searching for a home, you should not buy the most expensive in the block, but instead buy “beater” homes. For example, in homes costing $300,000, you can probably get a cosmetically unattractive home for low price of $230,000. Then with a little improvement like landscaping for $1,000, painting for $5,000, and fixing cracks for $10,000, you already have a $300,000 home value, which you have only paid for $246,000 including improvements.
Words of caution though, buy the house only if the problems are cosmetic. If the home has foundation problems or termite problems, it is not worth it to repair those because it will cost a lot of money.