Answer:
In short, the answer is "it depends." Property flipping is not as easy as they may make it look like on TV. If you are new at flipping properties you need to know that there is a real learning curve. Many projects go over schedule and over budget. These two factors alone may make deciding to flip a property an unwise financial move regardless of what the economy is doing. If you feel like you have the management and renovation know-how to make it in this business sector, basic economics should be your guide.

Investing is only a good choice if you are going to get more from your dollar than what you put in. You would do well to remember this rule if you plan in flipping houses for profit. Your goal will be to improve the house that you bought, but be careful that you do not over improve. Making upgrades beyond what someone is willing to pay for a house is not going to help you in the end. Don't let personal preferences guide your investment decisions. Choose reasonable and neutral upgrades that will appeal to the largest pool of buyers. While you may want to appeal to more upscale buyers with upscale pocket books, remember that these buyers can also afford to be a lot more discerning.

Location, location, location! Make sure that you do not overbuild for the area that your house is in. No one wants to buy a really nice house in a bad part of time. With a struggling economy, knowing how the market is performing in the city you are thinking of buying in is going to be a large consideration. While most markets are dictating that sellers lower their prices in order to attract buyers, there are some cities where home prices are seeing modest increases and even locations where the economy has only slightly affected home prices. Many first time flippers do not have the luxury of choosing to buy and flip only in those cities where home prices are on the rise. So, make sure that you consider what home price people will be willing to pay in whatever area it is that you do decide to build in. Then make sure that the cost of the home and the cost of the renovations that you choose to make, do not exceed the cost that someone will be willing to pay for your house.

There are benefits to flipping when the economy is slow that are not present when everything is running smoothly. For example, a poor economy generally makes it possible to find cheaper labor and materials (or at least a wider range of available options). Vendors and laborers, who are struggling to make a sale and find work, are more willing to work for less. These cost savings can be a nice counter-balance to the lower asking price that you will most likely assign to your income property. Additionally, when you have an income property, you have the option of making improvements to the home that will set you apart from all the other competition in your area. If you choose wisely and research comparable homes in your area, you can make your investment property the most appealing option and see that it sells quickly.

Like most projects, it is a good idea to look to others for advice when you are getting started in the business of flipping houses. Make sure that you have the financial and educational support to make your investments profitable. If you have all your ducks in a row, starting to invest in property flipping may be a great way to take advantage of a down economy.