Do you buy "Ugly Houses"?

Question

I'm looking to do a study here on the market for Ugly Houses. I know there was the major campaign by homevestors, but for today's market, does anyone here buy ugly homes to fix up and resell? I'd like to look into marketing to buy ugly homes but I wonder how laughable that is. I ask because I have a unique marketing campaign imagined/lined up, I just don't want to waste my time executing on it if it is pointless, financially speaking.

Do you buy Ugly Houses, from homeowners or investors, or both? Does it matter to you?

Are most investors buying pretty houses that you know of?

Do you buy Ugly Houses, from homeowners or investors, or both?  Does it matter to you?

Are most investors buying pretty houses that you know of?

Michael Quarles · Answer

Bottom line IMHO as long as you buy at As Is value and not ARV then it doesn't matter.   I trademarked the phrase IBuy Houses Ugly Ones Too.   And made enough to be known as the UGLY guy.

HV has the term locked up so you may want to stay away.

NA NA · Answer

I appreciate the varied responses.  Thank you all.

Jim C. · Answer

Ugly houses are only ugly until you buy it cheap and fix it up to flip or hold and rent it out. I love ugly houses because most flippers will pass "uglies' up.

James Vermillion · Answer

I have done rehabs from cosmetic to almost a complete job.  Not only do I not mind ugly houses, I don't mind moldy houses, creaking houses, or anything else that can help me get a great deal!

Byron Thomas · Answer

i am a 1st time investor just got done with the rehab on my ugly house a few months ago it was a good deal so i had to get it because that property cost less than my 1st car in my area a property that needs less work than mine did would cost 20 - 30k more but if the price is right i will buy a pretty property

Raymond B. · Answer

My first "rehab and flip", was an "Ugly House"

As some other investors do, I named the house, "the Dump"

It was empty for 8 years, the roof leaked, (a new roof was put on about 5 years before I purchased it) the plumbing and heating froze and burst, squirrels and mice, etc., had gotten into the house, and chewed on the electrical wires, etc.

It was a complete rehab, right down to the studs.

A rehab/flip, that I'll never forget. 
I made a few $$$ on it, but it was not worth my time, aggravation, etc.

Raymond

Matt Jankowski · Answer

I think any rational person would just prefer to buy beautiful, pristine homes for pennies on the dollar if given the choice.

Unfortunately, that scenario rarely exists.

Many of us create a great deal of our value by remediating "ugliness".

Monica Breckenridge · Answer

I do half ugly and half pretty.  My ugly houses are going to be fix and flips or fix and hold properties.  These I acquire through short sales.  I also buy pretty houses on Subject 2 the existing loan.  I like to buy pretty homes so I am not out of pocket any money when I buy my sub 2.  You can go either way.  Be careful when marketing to We buy Ugly houses, I believe that is trademarked by the Homevestors Franchise.  You will have to change up the wording to make it work.

J Scott · Answer

It's really going to depend on the investor.  A lot of investors (especially new ones) are going to focus on the "easy" projects -- basically the basic cosmetic stuff, also known as "paint and carpet" projects.

Other investors (myself included) are always thrilled to find these easy rehabs, but are also perfectly willing to do the "ugly houses" as well, if the numbers make sense.

Then there are the guys who actually prefer to focus on the ugly houses and don't like the easy stuff (they get nervous when deals seem to easy).

So, investors are all over the board on this, and experience will play a big role...