You can change most things regarding a property but you can never change the location.The condition of the home is important because it shows what you are willing to handle or update on a property.When I first started out, I just wanted to handle 'lipstick' type updates.

I self manage but this takes minimal work as we do full guts when we bought.... including new sewer, electrical, water, new roof in addition to all the cosmetic stuff ( no lipstick on the pig remodels).

Lots of lipstick on a pig around here.

I am in a group that has a passive investing club and when they have a webinar the people who run the group are very experienced and will call out BS or tell people they should question whether someone can buy a class A at 6 cap and think in 24 months and put lipstick on a pig its a 4 cap.

But also, my rehab work was a bit more like lipstick on a pig.

Just needed about $40k in lipstick.

If there are red flags negotiate or walk, flips can be done great or they can be lipstick on a pig. 

I like to just compare it to the housing market may be a few years ago where flippers were able to go in and do a quick lipstick renovation and make a healthy spread. 

It’s well known that buying in the right location delivers the best long-term results.Property type and age – Be careful not to fall for a home that looks good on the surface but is essentially “lipstick on a pig.”

This is one reason why I see so many people fail when they go from a single unit into multifamily (because they think they can just slap some lipstick on the pig and rent the units), but there is a lot more that goes into it, like the sprinkler system, adequate fire alarm system, properly sized stairwells.