If you have a good location, nobody can take that away from you. Smart real estate investors and developers know that if a home is in a good location, it’s a good investment. In places like San Francisco, it’s not uncommon to see 10 developers make offers on an absolutely ugly, tear-down house simply because of the location. If it’s a good house, there’s a huge upside for the person who renovates it.
For a home buyer who wants to live in the home and isn’t afraid of a little work, this is the best purchase to make. Why? Because once the renovations are done, you’re sitting on equity. The lesson here: Don’t be afraid to buy a home that needs work, particularly if it’s in a prime location.