Not all markets are the same
You can flip in just about any market, but you'd be mistaken if you think all markets are the same, says Bob Gordon, a broker with Re/Max Alliance in Boulder, Colo.
"You need to know your market," Gordon says. "In San Francisco or New York City, where prices are sky high, flippers need to understand that they're purchasing an expensive property, so having deep pockets is necessary. In Minnesota or Arizona, values are much lower, but flippers need to know that there is a lot of inventory and margins are so tight."
In one sense, that's nothing new. But what's different from the bubble years and the immediate aftermath is that we're no longer caught up in a national housing picture where cheap loans inflate prices across the board. These days, flippers can find properties that are likely to increase in value over six months of rehabbing, but it's unrealistic to expect that kind of growth everywhere.
"Today, flippers really have to know their niche and watch patiently for the best opportunity," Gordon says.