The most important advice in this book is on page 55 where the author advises you to figure out your profit before you buy. The only way you could be sure you have a profit when you purchase would be if you already had a contract to sell for a profit, at the same time. If you can pull that trick off, congratulations, you are an exceptionally skilled rehabber. But most rehabbers own the property for months or longer; if during this holding period one of the big real estate bubbles should burst profits will be blown away and significant losses could be suffered. For example, a rehabber could buy a fixer-upper 20% below the appraised value, but that margin could be wiped out if real estate prices fall by 41% as they did in Los Angeles in the 1990's. A bursting bubble would make all previous estimates and calculations invalid. This method of making money is not immune from adverse external economic conditions, no matter how hard you work at it.
This is a good book that tells you how to work hard to make money for yourself in normal real estate market conditions where there is some price stability (the relationship between supply and demand has not collapsed).
Beware, rehabbers, you may be buying into the biggest real estate bubble ever. But if you invest in real estate for the very long run, as I do, you don't have to worry about bubbles because in the very long run you just see them come and go.
As of June 21, 2005 there are some signs that a housing glut is starting to develop in various real estate markets due to excessive speculation.
This is a self help book on how to buy things, fix them up and make some money on the items. This is a great book.