Flipping Out: Possible Real Estate Comeback

First-time house flippers -- are they turning a profit?
3:00 | 03/30/14

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Transcript for Flipping Out: Possible Real Estate Comeback
With the U.S. Housing market slowly making a comeback, back in the business of flipping homes. This number tonight, investors flipping almost 157,000 homes in just the last year, that's up 114% since 2011. Are they making money? Are they jumping the gun on an early recovery? ABC chief business correspondent Rebecca Jarvis right by their side tonight. Reporter: Lisa, a stay-at-home mom, and her friend armella, and armella's sister Aleta, are first-time flippers trying to get into the game. A lot of people would say you should never get into business with friends or family. We did both. Reporter: And they're hoping there is still money to be made. We definitely missed the heyday of really cheap housing, but then we worried we would have trouble reselling it. Reporter: They bought this modest three bedroom for $150,000. And, what did it look like when you pulled up? Awful. It was awful. It was a dump. The kitchen floor was sinking in, you walked in and you were kind of crooked. The yard was a jungle. Reporter: Between renovations and real estate fees, they put $60,000 into the project, figuring things out as they went. This one might be a standard. That looks like a standard. It's 13 and a fourth by -- Look how we sound, like we know what we're talking about. Reporter: This past November, they listed the property for $275,000. But even after a successful open house, they still don't have any offers. That leads the women to seriously assess their finances and how long they can keep the house on the market. Yeah, I think we're okay to hold till January, just every time we, you know, we have to always make a mortgage payment. Reporter: As January came and went, the house sat unsold. When we listed it, we had the same dream everybody else has of selling it in 30 days. It didn't happen quite that fast. Reporter: But tonight, four months after it's been on the market, it's under contract for 233,000. Not quite the 275,000 they were hoping for. Did they make any money? They made $25,000. They're splitting three ways. Still, this isn't a game, even some of the top flippers in the

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