The Dos and Don'ts of Home Flipping

ByABC News via via logo

July 27, 2005 — -- Fueled by skyrocketing home prices and rock-bottom interest rates, "flipping" homes -- buying, sometimes renovating and then quickly reselling -- has become to this decade what dot-com stocks were to the 1990s.

Studies show about 30 percent of homes purchased today are considered an investment. Nationwide, home values have appreciated 20 percent in the last year.

While flipping can bring big financial rewards, it's also very high-risk. New York real estate broker Barbara Corcoran offers some specific dos and don'ts if you plan to speculate in real estate.

Pros:

Cons:

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