Yes it is most definitely possible. I have personally as well as other investors I work with, been able to take advantage of these market conditions and purchase homes well below market value and resell them in a short period of time for profit. I would highly recommend only attempting this if you have a strong grasp on the market and what is going on. One wrong miscalculation and you could lose your estimated profit or be stuck holding onto a property for a lot longer than you anticipated.

Consider attending a meeting or joining the Arizona Real Estate Investors Association (AZREIA), the link is below. There you can talk to people who are actually flipping now and others who have refrained from doing it in this market.

Everyone below is right, it is possible but very risky. I would stay in the starter market and make sure that you are able to turn it into a long term rental if you get no bites within a month or two.

Here's my answer in blog post form.

Short version: what Carlos, Artur and Linsey said.

Long version, see the link below...

J,

What you are saying is right, I know of a few investors who are currently fliping houses. But they are very seasoned, have deep pockets and the right connections. Although, most of the investors I am currently working with are buying to rent and hold.

Unless you are very experienced, have deep pockets and a high tolerance for risk I will advice you to buy and hold instead.

Wow Linsey, thanks!

I was writing a long reply here and said to myself, "Self, this is a great question and one that is asked a lot. There could be a lot of people wondering this very thing."

So I'm going to turn it into a blog post. It'll be up shortly.

It's certainly possible to flip in this market. People make money in every market: but, unless you're very experienced with the nuances it's very risky. You would need to buy very low, low enough to compete in a declining market: there needs to be a very big spread.

I'm not sure that this is best market to flip (turn quickly) property. Markets are too volatile and property values are not stable enough. It's more of a buy and hold market.

However, for great local insight, I'd check out Jay Thompson's blog and go to his Ask the Broker. He's a pretty straight shooter and I think you'll get some good tips there.