How to make Money with a Fixer-upper

You can Fix it, Rent it, and then Sell it or keep renting it

Buy a rundown house, do whatever it takes to bring the property up to snuff, then to rent the home with a lease-option. Usually you can get an upfront option fee of anywhere from $1,000 to $5,000, and several other advantages. You can get a  buyer into your home without having to pay a real estate commission. Next, you'll be getting a renter who really wants to buy the home before the lease expires, therefore they shouldl take better care of the property. Lastly, you may get some tax advantages if it takes more than a year for the lease option period to expire. You may be taxed at the lower capital gains rate. Ask your tax advisor for more info. If the tenants don't buy the home, you get to keep the option fee and start looking for a new tenant with another option-fee. If you want you can pull money out of any equity by refinancing and use the money to purchase another home.