Fixer-uppers are great for gaining value

Do the math.  A general rule of thumb is that your projected profit margin should be at least double your expenses.  For example, if you bought a distressed home for $100,000, and you intend to sell it for 150,000 (a $50,000 profit), you will want to limit your expenses to about $25,000.  However, a lesser profit may be fine, depending on your goals and limitations.