Are speculators fueling this fast paced market, not likely. According to recent Real Estate statistics, only 3% of homes are being sold within one year. The prime movers of Real Estate prices have been; low mortgage rates, low unemployment and the growing demand for housing, this is what is fueling the market.

Baby boomers are strategically buying second homes for retirement, this huge segement of the population is estimated to account for 20% of the second home buyers, so overall, house flippers have no appreciable impact of the housing market.

Top Three Tips for Making Money on that Flip

Know you market. Check with your realtor to find out what is selling in your area. Find out what is a ?hot? selling feature in the area you plan on working in. New appliances, hot tubs, bathroom goodies, upgrades in flooring, finished basements etc are a valuable insight to what can make your sale happen quickly.

Look for the ?Ugly Home? that only needs cosmetic changes. Stay away from any homes that require structural work. Until you have lots of experience with home renovations structural problems can become the proverbial money pit. Stay away from Structural Repairs!

Set yourself a budget and stick to it. Look for a house that will not extend your finances past what you had budgeted for. Do not look at houses that require work that is beyond your own expertise, unless you plan on bringing in a professional contractor to estimate and do the work for you. Many flips quickly turn into nightmares for the unwary investor who gets in over their heads because of unrealistic assessments of the work that they can perform themselves.

According to the experts, Flipping Houses is strictly a numbers game. Look for that orphan house in the neighborhood. Estimate all your projects to cost twice as much as you think and take twice as long. Go to every open house in the area and look at what the top houses have for upgrades, don't improve beyond what the best homes have, if they don't need it, neither do you. Your profit should be calculated on the selling prices of the best homes in the neighborhood and the difference from total cost, including purchase price, to bring your ?orphan home? up to the same condition.

Take advantage of all the resources available to you. Real Estate agents are an excellent source of homes to look at and can also advise you on the potential selling price for a renovated house in a particular area. Web sites, such as www.houseandhome.msn.com can give you a good idea of the return of investment for particular improvement projects. Research houses for sale and house that have been sold until you have a good idea for what is selling in your area. Pre-screen contractors that will be doing work for you and have them price prospective renovations before buying. Use a home inspector, I recommend Napoleon Home Inspections, to ensure there are no hidden problems. A cheap investment for the ?Peace of mind? you receive.

Read, Read and Read some more!

There are people who are making money out there flipping houses. They are not lucky, but people who have researched their investments, and from experience and hard work, turn their investments into profits.

Are you ready to jump into a fast growing investment market?