Flipping is buying an under priced property and then quickly reselling it at market value. Homes are typically sold below value by uninformed sellers or those in distress (like job loss or foreclosure). Often a property is sold under market value because it is a "fixer upper". Sometimes they require very little such as paint and carpet and other times they have mold, asbestos, or foundation issues. These inherently hold more risk and more work, and therefore often have substantial profits.

Note: Article from orlando Sentinel May 07 2015

“House flippers nearby Metro Orlando see 75% profits Volusia County house flippers had the nation's second highest profit margin for buying, rehabbing and selling houses during the first quarter, a new report shows.

House-flipping profits in coastal county, which is home to Daytona Beach and New Smyrna Beach, were an average $60,630, or 75 percent, in the third quarter. Only the Baltimore area, with 94 percent profit margins, outperformed Volusia, according to a report released Thursday by RealtyTrac.

Investors seeking large profits in Metro Orlando have had to contend with fast-rising purchase prices during the last two years. Even so, the nearby counties of Volusia, Polk, Marion all had among the biggest profits for reselling distress houses nationally, according to a report released Thursday by RealtyTrac.

Longtime real estate flipper Kari Gann, who specializes in buying and rehabbing houses in Orange, Osceola and Polk counties, said relatively affordable prices outside the Orlando area have made it more advantageous to focus on outlying areas. But, she added, buyers had better know what they're doing.

"The hardest thing is getting the right price because of the competition to bid against them and how much of a loss the banks are willing to take," said Gann, of Winter Haven.

In the Orlando metropolitan area, the average flipped house that sold last quarter was purchased for $112,666 and sold 5.7 months later for $158,870. The Orlando region's 41 percent profit margin from flipped houses was slightly less than Florida's but higher than the national average of 35 percent.

Flip profits nearby the Orlando region included: Marion County (Ocala), $38,208 or 74 percent; Polk County (Lakeland), $44,385 or 63 percent; Tampa, $60,560 or 57 percent”.