How to Flip Houses

But let's face it, many folks make a very good living buying and selling homes. So how do you get a piece of the action?

Start by mapping out an area between where you work, live and anywhere else you go to more than once a week. If you decide to buy some property, start with the areas you know best. And you'll need to visit them regularly if you buy homes that need renovations. Gotta keep a close eye on those contractors.

Then start small. Buy one house, fix it up and try to sell it. Then try again. Keep a log of the amount of hours you put in and, of course, keep diligent records of your revenue and expenses.

So then let's say things start to go well. You're buying and selling and making some money. Now can you quit your day job? "Only when you are making twice as much as your current salary for two consecutive years," suggests Rogers.

How 'bout that? (That's the kind of conservative advice I like.)

No surprise, not everyone thinks the flipping market is hot these days. Flippers are only interested if they can get out quickly, and these days they can't, says John Winer, a transaction real estate partner with Ernst & Young.

Granted, the momentum game of a few years ago is history, and the days of buying a pre-construction condo, only to flip it before the foundation was poured, are long gone, especially in hot markets such as Miami and Phoenix. There are just too many unsold condo units out there. The only things you can flip in those areas are your morning pancakes.

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