Flipping property for profit was a popular investment strategy during the last housing boom for about 2001 to 2005. The art of flipping consisted of a person buying one or multiple properties at a low price and selling or flipping them for a higher price within a short period of time, usually within six months to a year.



The danger with this strategy however was that if no one wanted to buy the property, you would be stuck with multiple mortgage payments, which could end up being financially disastrous.

Flippers didn't worry too much about the dangers involved because people were already doing it for years with no troubles. But then the calendar changed years to 2006 and everything went wrong.

The article, ?Homes: Stung by the slow market,? written by Les Christie and published February 8, 2007 on CNNMoney.com provides a detailed story of how flippers that got caught with multiple properties at the end of the boom are now dealing with their financial situation.

?Dave Corey has been flipping houses on the side for nearly 30 years, but the latest slump in the real estate market is taking its toll.?

Corey's latest flipping struggle has been with a single-family ranch home in Ocala, Fla. He expected the property to be just another easy buy and sell profit but it didn't sell; for 10 months.

?After paying $146,000 in January of 2006, he's now out of pocket $160,000 including closing costs and renovations, he said. The list price of $178,900 has drawn zero interest.?

Corey moved down to Florida in 2000 after being a used car salesman as his primary job in Vermont. He moved down to Florida because he heard about the profitable potential of flipping properties down south.

??I made $80,000 in the first four months of 2005 and didn't kill myself [working too hard],? he says.?

?A few years ago, Ocala, a small (less than 50,000 population) central Florida city, was a hot spot for investors, mainly Northerners, according to Corey. Those buyers have flown back north. ?I don't see where any new investors are coming in,? he says.?

Many people read articles about the slumping housing market everyday and despite knowing that this means it will take a seller a lot longer to conduct a sale and will probably force them to lower the initial asking price, wonder why a slower market has become such a big deal.

The thousands of people like Dave Corey are exactly the reasons why this slumping housing market has had such a significant impact.

?Corey thinks he may have solved his problem, at least for now. He entered into a lease-with-an-option-to-buy transaction with a 30-something couple. They're paying $1,200 a month, of which $200 goes into the down payment principle. He's very pleased with the lessees; they pay promptly and he expects them to follow through on the buy option. Still, he'd rather sell the home right away. (?It ties ups my money,? he says.)?

Corey is actually the exception to many other flippers that are still trying to find a way out of their additional properties while being able to make all the required payments.

The most effective option right now may be to lower the asking price, offer incentives and any thing else just to get some monthly income from these financial guzzling properties.