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.

If I buy turnkey, Im putting 25% down on any property, which is like 30-45K in Cleveland, and Im still at risk of running into issues because we all know that most turnkey properties aren't actually turnkey, they're lipstick on a pig.

Unless you personally supervise the renovation you don't know how good this supposed turnkey home is - the expression "lipstick on pig", pretty house hiding lots of problems. 

Lipstick projects are rare because OO's will buy them out of a level of desperation.

It's just tough to know the area, the type of renters, the type of housing, if the repair were quality or lipstick on a pig.I'd think there must be a dozen good PM in Akron. 

The investors who purport to acquire  properties that meet the 2% rule are the investors who are completing “gut rehabs” for $25K…… Really all they are doing is slapping lipstick on a pig & making the properties look nice enough to move the least qualified tenants in.  

.• A 1.2+ DSCR usually unlocks better rates and smoother approvals.Light Rehab Is Usually OKIf the property just needs cosmetic updates (aka a “lipstick remodel”), it’s typically not an issue.But major repairs or deferred maintenance could disqualify it.Appraisal Condition Rating MattersThe property must appraise in C1 to C3 condition.• A C4 rating or worse is often a dealbreaker for DSCR loans.