Excellent question. Up until about two years ago, there were ample properties ripe for flipping. By that, I mean buy cheap, fix-up, and sell for a profit. These properties were usually available through courthouse auctions, bank-owned through brokers (commonly known as REO), or simple foreclosures.
About 18-24 months ago, the banks realized the market is much healthier and stronger than it was, say, pre-2013. They decided it was time to start selling these REO’s at market price; and they are getting it. In the meantime, there are more investors vying for fewer properties. I know, because I am one of those investors. This also drove up the price.
The news is not all bad, though. If you do your homework, there are still REO’s and “standard sale” properties that will return a profit after some work. Lastly, there will always be buyers that are too busy to remodel a home or simply do not want to go through that process. This means a market for move-in ready homes.
Location, location, location will determine your profit. Feel free to call me on my cell phone with any questions.