My investor client purchased a property in a desirable (but not exclusive) location for $165,000 cash. It was in deplorable condition, to the point at which the entire garage (including the slab) had to be demolished. The home was gutted back to the studs, and completely re-done at a cost of approximately $100,000. With a total investment of about $265,000 the home was put on the market at $389,900. It sold in four days for $385,500. Since the investor has a broker's license, he marketed the property, saving at least $11,500 in Realtor fees. Overall, he cleared about $100,000 in four months. There is no way that one can yield that kind of profit on a newer build, irrespective of cost.