There are 4 main Reasons Houses Become Fixer-Uppers:

1. "AS IS" Houses. The seller either can't afford to pay for repairs or doesn't want the inconvenience.

2. Tired or Dated Houses. They are basically sound, but have not been updated to current standards.

3. Probate or Foreclosure Sales: These properties are sold through the court system. Dealing with heirs or foreclosures can be difficult and time consuming.

4. Serious Structural Problems: Structural problems are usually cured by major cash outlay. Many types of structural repairs, such as foundations, require disclosure upon resale, which can scare your future buyer.

Where Do You Look For Them?

1. A run-down house in well-maintained, middle-class neighborhood.

2. Look in the classifieds and home advertisments for words like "Needs TLC", "Fixer-Upper", "Diamond in the Rough".

3. Review local listings of foreclosed properties.

4. Watch for Vacant properties, as you drive neighborhoods.

5. Look at properities that have been on the market for a long time.

Good outline. I use all but the 5th one, I'll try that next.
One new thing to add to your list is find an eager Realtor who will call you with these, because he wants to invest minium time to sell them. I usually accept properties as is(after verifying the foundation is OK). The Realtor I work with likes my no hassle buying. He typically brings me estate property or property that needs a lot of repair. I educate him on what I will take & when he runs accross one he calls & I always buy if it met my criteria.

#1 is so important. You want to find the worst house on the best street. Once you are done sprucing it up, you stand to make a nice profit.

Thanks for the advice I used number 5 when I bought my last home We got it alot cheaper that way.