Home flipping... is it history?

The practice of purchasing an investment property, quickly remodeling it and then re-selling it has slowed considerably.  Some experts estimate this common practice, 5 years ago, occurs in only about 50% of current transactions.  Why?  It's a combination of two factors.  One, as market prices continue to flounder it is much harder to make enough profit from a "flip" and Two, the demand for rental properties continues to be strong.  Home owners that have lost their properties through short sales and foreclosures are now looking for rentals to accomodate their housing needs.  Investors now are responding to this demand and are choosing to rent their acquistions rather than trying to meet an increasing difficult profit margin from a quick resale. 

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