If you’ve ever seen an old, run-down house and thought, “No way anyone would buy that,” think again. Real estate investors like Stephanie Lombardo see opportunity where others see problems. With more than 10 years of experience flipping houses, she believes that cheap homes—even the “ugly” ones—can be gold mines.
In this blog, you’ll learn how buying low-cost houses can lead to big profits, smart strategies for getting started, and why flipping homes for beginners might be easier than you think.
For new and mid-level real estate investors, starting with affordable homes makes a lot of sense. Stephanie explains that these deals are less risky.
Since the loans are smaller, it's easier to manage your money and gain confidence. Often, these homes are undervalued because they don’t look nice, not because they have serious problems.
"Beginners like to do cheap deals because it's a smaller loan, which is less risk and gives you the confidence to go on and do more of those deals."
These kinds of homes, also called distressed properties, are perfect for those who want to learn how to flip houses for beginners. With a little vision and the help of a good contractor, you can turn an eyesore into a dream home for buyers.
Stephanie lives in Aiken, South Carolina, and does most of her work in Augusta, Georgia. These locations offer affordable homes and strong demand from buyers.
If you're looking to invest, focus on areas with cheap houses for sale that still have growth potential. A strong local market means you'll have a better chance of making a profit when you sell.
Real estate isn't always smooth. Stephanie talks openly about the learning curve. Problems like bad inspections or unreliable contractors are common, especially at the beginning.
"You have to be a bit of a glutton for punishment too to get into it."
The key is to keep going and use every mistake as a lesson. Many successful investors have been in your shoes and learned their way through trial and error.
Over time, Stephanie developed a solid system to avoid common problems. One important step is doing a full inspection before buying. She also avoids high-end flips because they often take more time, money, and energy than they’re worth.
Instead, her focus is on investment properties under $100k, which offer the best mix of low cost and strong return.
Stephanie sticks to buying homes under the median home value in her area. This keeps her flips affordable for local buyers. Her rule is simple: "Buy low, sell median."
This strategy is especially effective in smaller cities where home prices are still accessible. Searching for fixer-upper homes in Georgia or affordable homes in Aiken SC can uncover solid opportunities.
Want to see how this strategy works in real life? Watch the video below where Stephanie breaks down one of her most successful flips step-by-step.
Not every part of the home needs a full makeover. Focus on updates that matter most to buyers:
These budget home renovations increase the value without breaking the bank. Stephanie reminds us to keep it simple and smart.
"Ask yourself, is this light fixture actually going to sell this house? If the answer is no, then make a different decision."
Overspending is a common mistake. Stick to the improvements that bring real value. Buyers want clean, functional homes—not luxury upgrades they won’t pay extra for. Use cost-effective home upgrades that boost your return on investment.
Fixing and flipping isn’t just about making money. These projects help clean up neighborhoods and make communities stronger. Turning old homes into fresh, livable spaces adds value for everyone involved—from buyers to contractors.
A strong team makes all the difference. Stephanie works closely with trusted contractors to keep projects on schedule and on budget. In return, she provides steady work and builds solid partnerships.
"Especially with how much the contractors are always looking for good work, and you get to be a part of providing that for them."
You don’t need a huge budget or years of experience to start flipping homes. All you need is a plan, the right team, and a good eye for affordable houses with hidden value.
Stephanie’s journey proves that even the roughest-looking property can turn into a winning investment. Start small, learn as you go, and focus on smart choices.
These "cheap and ugly" houses may not look like much at first, but with the right mindset and plan, they could be your ticket to long-term success.