Steve Gray and his wife, Deanna, bought a dowdy fixer-upper in Indianapolis 10 years ago. The windows were shot.

The lighting was old and it was a time machine, with décor unchanged from 40 years ago. Oh, and it was beige, beige, beige.

"The walls were the same color as the carpets, which were the same color as the ceiling," Gray says.

But what the couple wanted most from the purchase was the old Lantern Hills neighborhood; it had been the exclusive location when they were kids.

Also, they saw something that others apparently had missed: The house had amazing potential. True, there were no granite countertops, spa bath or stylish cabinets. But there was something much better: The three-bedroom, three-bath house was a classic example of mid-20th century "Prairie" style (think Frank Lloyd Wright). It had a walk-out basement, enclosed courtyard and a 2-acre, wooded, hilltop lot.

The Grays made cosmetic changes -- new countertops, paint, floor coverings and light fixtures -- shortly after moving in. With these easy and relatively cheap fixes, it became a terrific home and a solid investment. Then, they embarked on a long-term plan for remodeling and expanding in stages. "I'll bet we saved 20% because there were not a lot of people who could envision what the house could really be," says Gray, who is a professional remodeler.