Flipping in a stable market

[Robert Dean]

A local buy and hold investor recently advised me that margins for flipping houses in our local market (Northern Utah) are relatively narrow because the market is relatively stable and unemployment is low.  His advice was that buy and hold is a better strategy in a stable market.  Is that correct?

[Brian Burke]

@Robert Dean , you can successfully flip in an up market, down market, or sideways market. The key is that you just have to properly recognize the trend. From that point, it is all about the spread, as @Andy M. said, not the market. 

The best time to be a flipper is in a sideways or down market that suddenly switches to an  up market. The properties in your inventory will sell for more than you expected and you'll make a killing. 

There are two worst times to be a flipper. One is when a up or sideways market suddenly turns down. When that happens, the properties in your inventory will sell for less than you planned and you'll feel that pain.  The other bad time is in a clearly up trending market, as this draws out all of the amateurs to bid prices up to the moon, and it's really tough to buy anything if you are disciplined.