The home "flip" market is not all gain without loss. It is much more hazardous then the television shows would have you believe and there are many ways to lose part or all of your investment money. Labor Costs, Material Costs, undetected defects, market fluctuations, lack of knowledge of construction and Real Estate, interest rates, all contribute to make "flipping" a difficult business to succeed in.
I have to speak for my area (California) where we have few investors who remain in that market. Real Estate now(2013) appears to be slowly improving, so we might see that side again. We also have had much of the distressed property market bought up by "hedge fund" investors. Those properties will eventually be flipped and sold.
My advice?...........proceed slowly and evaluate before proceeding!