If you have to ask, the answer might be no. However, If you have always dreamed about creating a home to your own vision and specifications, this might be the best way to go.
If you have a house in your sights that is structurally sound and priced attractively, the work might be worth it. Whether the house is one you intend to live in or a house to improve and flip for a profit, you need to prepare and do your due diligence to make sure the project is worthwhile and won't lead to financial disaster.
There are many benefits to purchasing a fixer-upper, most obviously a price that is lower than other comparable houses found in the area. The trick is to know the types of property to look for, to be realistic about what it will take to get it up to par, and of course the associated costs. When you have a long punch list of things to fix, costs can add up quickly.
If you are looking for a good prospective fixer-upper, consider the following:
Location--You want to buy in a desirable neighborhood, or adjacent to a better neighborhood, at least. Fixing up a home in a sought after area will help you increase your odds of having a greater profit margin when you go to sell.
Layout/Configuration--If you plan on selling the home, you want one that will appeal to the greatest number of buyers. Also, the way the house flows and is organized will have an impact on the cost of installing new renovations, as the need for customization is less.
Condition--If your'e looking at a fixer-upper, the issues that make it so should be fairly straight-forward and involve mostly cosmetic matters. Fixing floors, painting and replacing out of date appliances is costly, but a sinking foundation or some other major issue could be a financial nightmare.
Looking to do a fixer-upper and ready to provide a little sweat equity? Go for it! Just make sure you get a good inspection, do the math and be realistic about what it's going to take.