Have you ever renovated a property? Are you ready to take on a full-time job? Professionals who renovate and then sell, expect to make a 20% profit after recapturing 100% of the money they spent for the actual renovations. If a home has been renovated, say two years ago, then it is unlikely the seller will recapture 100% of the money spent on the renovations. More like 70%. However, your question is not really a financial one. If you have never renovated a home before and don't know what your doing, then buy one that is in good shape. Don't let anyone tell you that it is easy to renovate a home. Think about it... electrical, plumbing, heating, roofing, windows and frames, foundation work (that will cost you an arm and a leg), exterior siding, drainage issues, pulling permits, bidding work, dealing with sub contractors, scheduling, etc... Even if you have a relative who is an experienced general contractor, be very very careful if you decide to renovate on your own. Even the professionals don't always make money on their renovation deals.... my guess would be around 60% of the time, especially in today's uncertain market. You don't want to be renovating if prices are going down, unless you have very deep pockets.