I would like to personally thank the investors out there that are buying and renovating properties. As far as I'm concerned, they are doing the real estate market a huge service buy taking distressed properties off of the market and returning quality properties that help increase home values and promote owner occupancy in the neighborhoods that they are located in.
If they did not do this, the typical property would possibly be sold to a buy and hold investor, then rented out. The sale would be a low price which hurts values overall. Then, the property would be tenant occupied, which generally speaking is not as well maintained as an owner occupied home. This, in turn, also hurts home values.
As a home buyer, a renovated or "rehabbed" property is a great deal. What needs to be considered is that if a home is bought for less money, then fixed up later, the owner has to come up with the extra money to make the repairs and improvements. However, if a little more is paid for a renovated house, all of the improvements and repairs are financed with the mortgage and there is little or no money out of pocket. Additionally, the investor doing the renovation can usually get a cheaper price on materials and labor, so you essentially get "a lot more bang for the buck".
Watch out, though, for amateur rehabbers- Some of these people try to do the repairs and renovations themselves and do a poor job. Make sure you do due diligence before you buy.
If you have and questions or comments, feel free to drop me a line.