Appreciation is assumed to be zero. 2% rule of thumb being the test case.If people are in development or other aspects of the business the numbers are different and different variables drive the return.If people are 'breaking even' on a monthly basis (common strategy in high priced markets) they are seen as being speculators as they do need positive appreciation before there is a return on the investment.

Majority of the people there are newbies or speculators you speak of that once they find out the next "hot spot" they tend to ruin it for the real investors.

Very speculative, and if the market suddenly stops, they will be left holding a very large bag.

If you are willing to buy at current price levels and speculate on appreciation the MLS and auctions might be acceptable.

Anything else is speculation.

But all these macro-economic factors are hard to predict and I would rather invest in a known thing like RE than speculate on global inflation and global gold consumption.

My mobile office that will allow me to do investing when I visit with a patient in their home because  I can also speculate on property in that area (50-mile radius).

Buying homes near a proposed Wegmans site may be a good speculative plan, but I call that -speculation-, not -investment-.

That's just pure speculation I tells ya!

The Problems:Flipping relies upon market condition, there is a great deal of speculation, market cycles based upon macroeconomic trends and timing can have huge effects upon the success or failure of the strategy.