Renovation
I often hear warnings (on HGTV) about over-improving a home to the extent that it's basically too good for the neighborhood and the owner will never get their money back out of it. In the current real estate environment there are several inexpensive homes out there that could get some really stunning makeovers but the cost of those makeovers would put the value of homes waaaay above the cost of the other homes on their block.
For example: There is a 3 bedroom 1 1/2 bath house offered for $129,000 offered in a neighborhood where the median home is in the 170's. The house looks like it has never been updated since the 1970's. Ideally if I purchased it, I would want to get it rewired, remove the shingle roof and replace it with aluminum, remove the ugly siding and replace it with Hardiplank, add a 1-2 car garage, add additions onto the back of the house to enlarge the master bedroom so it could have a nice walk-in closet and a full ensuite with a good size soaking tub and therefore rather than the house having 1 full bath and one half bath, it would have two full baths. The addition would also enlarge the kitchen so it could have more space for a center island and additional shelves as well as a sunroom and deck. Also the house would have hardwoods (or a good laminate) throughout because I have allergies. I'm not the least bit ambitious am I? 
But because the house is so cheap and has the land to handle those additions, I can afford to do it. I am in my 40's single and will likely like in this house for a good 30-40 years if not longer. Would it be wrong to buy it and sink the large sum of money into the upgrades/renovations? On the outside the house would look pretty much like all the others in the neighborhood but the inside would be stellar! 
