It Beats Earning $20 an Hour?

Posted by & filed under Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Financial Accounting, Financial Reporting and Analysis, Financial Statement Analysis, Fraud Accounting, IFRS, Intermediate Accounting, International Accounting, Managerial Accounting.

Flipping houses earned a bad reputation during the housing bubble, when speculators bought and sold millions of homes in search of easy profits. But as the real estate market is showing signs of life, the practice is gaining popularity again.

Questions:

1. Which areas of the country have seen the most flipping action and why?
2. What is the average gross profit for flipping a home in Maryland and Virginia?
3. What are the risks associated with the new flipping boom?

Source:

Dennis, B. (2012). Flipping houses is once again a booming business. The Washington Post, Oct. 14 (Retrievable online at http://www.washingtonpost.com/business/economy/flipping-houses-is-booming-business-again/2012/10/14/63463f7a-0f3b-11e2-bb5e-492c0d30bff6_story.html?hpid=z5