Buying properties that need some renovation gives you the greatest potential for a high return on your investment. You might see these homes advertised as handyman specials. One reason why fixer upper properties are such great opportunities is their low purchase price. The lower your initial price, the easier it is to make a profit. The need for repairs often gives you an advantage in price negotiations.

There's also a larger potential market of home buyers looking for homes in lower price ranges. Most handyman specials fall into this lower price range. But not many home buyers are interested in doing the repairs themselves. If you can buy a fixer upper at a low price and give it a little TLC (tender loving care), you'll have people lining up to buy when you put it back on the market. Rehabbing - the process of buy, repair, resell - is one of the best ways to start making money quickly.

Accelerate Your Wealth Building

When you buy properties that need fixing up, you can instantly increase your equity just by doing some home repair. This newly created equity in the home can be used to finance your next purchase. As you keep duplicating the process, your wealth building begins to accelerate, and you can build a large property portfolio in a surprisingly short time.

Profit Instantly in Any Market

You can always profit over time by investing in real estate. When market conditions are less favorable, it might take several years to see significant capital gains. However, when you buy and fix-up properties for resale, you can profit instantly regardless of the market. Your repairs add instant value, easily 10 to 30 percent. And if you hold the properties in a growth area, you stand to make even more.

Find a Six-Figure Income

Flipping (buying, fixing up and selling) properties is an activity that truly has the potential to yield a six-figure income. Once you have several properties in your portfolio, it's not very difficult to make more than $100,000 in a year, even when you take selling costs, legal costs and closing costs into account.

Fire Your Boss

With this kind of income potential, you may reach a point where you can move into full-time real estate investing. Even if you don't have money to start out with, you can start with your own home. The increased equity you gain after a quick makeover could finance your first investment. With some desire and motivated action, you could quickly reach your goal of being a full-time investor.

Earn Now or Earn Later

You have a choice to buy, fix up and sell for profit now, or buy, fix up and hold for profit later. And while you're holding the property, you can rent it out for regular income. This allows you to meet current financial needs and prepare for your retirement.

Control Your Risk

When you build your property portfolio using these methods, you stay involved with your investment. Many other investments are handled by strangers who aren't really at risk. There's also no need to worry about market forces. You can see returns from the beginning regardless of market conditions.

Fixer-upper homes have a lower purchase price because most potential buyers don't want to face renovation as soon as they move in. When you buy a fixer-upper and do some improvements, you quickly increase the home's value and make it more attractive to a larger segment of the home-buying market. Buy transforming a handyman special into a beautiful, "new" home, you've almost guaranteed a handsome profit for yourself.