Nick Perry explains the value-add rule for real estate investing: buy the cheapest house in a strong neighborhood, renovate it, and sell for profit. This strategy beats buying the best property in a weak area.
Don't you ever buy the best property in the neighborhood? It'll keep you poor. If you want to really be wealthy, you need to buy shit shows or decent homes. The reason why isn't surprising at all. Well see, if you always buy the worst or cheapest home in the neighborhood, you can add more value to it than you would be getting from the best home. Which means if you decide to sell, you make more money than you would if you bought the best home because you bought the crappy one for less and made it more valuable. Make sure to always buy the cheapest house in the best neighborhood.
