So a friend of mine just came into a bit of $$$ and wants to get into the business of buying distressed properties, remodeling them, and then selling them 3-6 mo's later. My opinion is that the real estate market is at best stalled, worst could see a appreciable dip (we live in CA-Bay Area). Because of this I think such a venture has a pretty poor risk/reward ratio. He tends to think that b/c he's putting extensive work into each property, even in a rough mkt he could make money. Anyone out there have experience in trading houses? It seems to me if it were that easy larger players would have taken out the house arb some time ago, but perhaps there is still room for a lone buyer to make 10% on a house in a few months. Thoughts?