How to Flip Houses

And foreclosures and the recent subprime fallout are not the only reasons homes go on the block.

Roberts points to the four D's. "People are always dying and getting divorced. There are always people with drunkenness problems -- from either alcohol or drugs -- and there are always 'don't-wanners,' folks who just don't want their homes anymore."

So there are always opportunities out there. But should you take them?

Not unless you have the cash to play the game.

Here's why:

Let's say you decide you want to buy the little vacant house around the corner, fix it up and sell it. First, you need a chunk of cash to put a down payment on the house and secure a mortgage. Then you need the monthly cash flow to pay the mortgage, interest, taxes and utilities on your new little money pit.

Now you have to fix it up. Are you handy? Do you have any idea where your hammer is? If not, you'll have to pay someone to do some renovations.

That could take months. So now you'll have to carry that little house, plus your primary residence where you sleep (albeit restlessly) at night.

And that's exactly why you should not quit your day job to become a flipper. "Quite frankly, if you don't have a secure day job to begin with, you probably shouldn't even get involved with flipping homes at all," says Roberts, who also runs www.getflipping.com .