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I couldn’t help but notice as I read your posted question that
you seemed to confuse the terms that you are using. Before
I explain this let me first briefly answer your question.

Yes, foreclosures can be flipped for a profit if you get wind
that the property is in foreclosure in the early stages of the
process. If you miss out on the early stages of foreclosure,
after its been publicly listed as in default, and it truly is a
good enough deal to flip, every investor in town will be on
it and the competition will be fierce. In my experience with
foreclosures, I find there is usually not enough equity available
to make it worth the effort to flip. In my humble opinion
it is better to look at foreclosures to rehab and hold a couple
of years for cash flow and appreciation. If you look at foreclosures
with the right game plan they are an excellent source of profit.

Now back to my first point. You seem to use the terms flip and
rehab almost interchangeably. The only thing the terms have in
common is the fact that they are both properties in need of a
certain amount of rejuvenation to bring them back to full market
value. At this point the similarities cease.

You can flip a property for a profit with little or no rehabbing
on your part. Example, say you find a property that needs
30k worth of rehab to bring it back to market value of 125k
and you can buy it for 60k. For what ever reason you don’t
want to put in the 30k of rehab work yourself . So maybe you
clean up the yard a little, remove trash and cut the weeds, and
empty out the junky old furniture and appliances left over from
the previous owner (or maybe you don’t). Now you find an
investor who wants to put in the 30k to get market value of
125k and you sell it to him for 65-70k. Now you have 5-10k
in your pocket, and after the investor puts in 30k of rehab he
has 25-30k of equity/profit in his. He is free to do with the
property what he wishes; keep it for cash flow; or sell for full
market value.

If you are going to go to the effort to put in the 30k to rehab,
don’t settle for flip profits, go for the gusto and get full value
or keep it for cash flow.

Conversely, rehabbing is what the investor did in the above
as you can see he got the lions share because he had the most
at risk.
If you want to settle for flip/quick profits, do as little to the
property as possible. Just get the other investor’s attention;
or as the Godfather would say “make him an offer he cant
refuse”.

Hope that clears some stuff up for you. E-mail me at
[email protected] and I will get you a free report that may
help even more.