House flipping, the selling of property within six months of purchase by investors, was once discouraged by the government. But these days, the activity is more than welcome as investors fixing up and quickly selling at a profit is helping to reenergize some of the hardest hit housing markets. Theimplemented a one-year waiver of anti-flipping rules effective Feb. 1, so borrowers can now get FHA financing to acquire homes from investors who have held title for less than 90 days.
So where is flipping making a comeback? In some of the most depressed markets in the nation. Here's a list of the top five locations with the percentage increase of "flipped" properties as reported by BusinessWeek
Sacramento, Calif. +12%
Las Vegas, Nev. +38%
Riverside and San Bernadino Counties, Calif. +45%
Phoenix, Ariz. +81%
Lee County, Fla +167%