“Flipping’ is when people buy residential property, hold it for a brief period of time, make minor improvements, and then sell it, hoping it has appreciated quickly so they make a profit,” says Nathan Halsey, founder and president of Bishop Abbey Homes, a builder in Dallas.

It takes a lot of money and borrowing ability to try your hand at “flipping,” cautions Halsey, so make sure you do some homework first:

• Whether you’re thinking of buying close to home or in a distant market, you need to know prices, what’s available, and where.

• Pair up with a contractor or someone in the industry who can guide you into buying right.

• Look for opportunities to add value, rather than just to quickly buy and sell the property. Adding square feet, additional rooms or bathrooms, or improving landscaping will get the most out of your investment.

• Don’t overextend your finances. Buy something you can afford in case you need to hold onto it longer than you realize.

– Marshall Loeb, KRT