Even a small downturn could wipe you out. Vegas or Miami or San Diego real estate surely won't lose all of its value like an eToys, but the potential risks for investors are just as dire.

A flipper who puts down $40,000 to buy a $400,000 home would lose the entire down payment should the market decline just 10 percent; throw in closing costs, 12 months of mortgage payments and a 6 percent realtor commission to sell, and the flipper could easily be out $80,000 on a $40,000 investment.

Hard-core flipping is obviously not for everyone.

Read more on: http://money.cnn.com/2005/03/14/magazine/flippers_0504/