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Neal Frankle, a member of the AdviceIQ network, is one of the most prolific writers and sharpest minds in the advisor world. Flipping a house seems so 2007. But Neal argues that you can still do it, even in this market. The founder of Wealth Resources Group in Agoura Hill, Calif. Neal has a blog that is a must-read for anyone interested in personal finance.

Want to flip a house, buying it and then selling it for more? A lot of that went on before the 2008 financial crisis, when home prices crashed. But now the long-suffering residential real estate market is showing some signs of life.

New-home sales rose smartly in August, according to the National Association of Realtors. And previously owned homes enjoyed a nice rebound in the second quarter. That means the residential real estate market might be on a recovery path, and there may be a possibility you can make money there again.

Existing home sales are coming back. And so are opportunities to flip them.

If you want to flip a house for profit, first understand that you are in the business of buying and selling property fast. Your focus must be on speed – not maximum profit. You must be realistic and understand that each delay compounds your risk. Better to sell a property quickly at a small profit and go on to the next deal rather than try to maximize your profit on every transaction.

The core of your real estate flipping business is to buy cheaply and at the same time sell your properties at prices under market. That’s how you’re going to move the property fast.

That said, you must be patient, look at more deals, show restraint and pass on properties that aren’t going to give you an edge. You also have to avoid real estate scams.

And your challenges don’t stop there. If you want to be successful in buying real estate, understand that not every location lends itself to flipping property. Your best bet is to focus on locales that were hit hardest and suffered the greatest losses. That means buy property in distressed areas. Those markets are full of foreclosures, and it’s frightening.

If that isn’t challenging enough, institutional buyers are diving into the market, as well. They’re swallowing up properties all over. This makes it even harder to find deals that make sense.

With all these difficulties in mind, how do you flip homes profitably in this market?

1. Pass on expensive repairs. There is nothing wrong with doing cosmetic repairs, such as basic touch-ups, replacing carpets and light yard cleaning. But don’t get into projects that require big money investments, like updating kitchens and bathrooms or changing the layout of the house. Besides the added financial risk of sinking more money into the property, it takes more time before you will be able put the house back on the market.

2. Take on no debt. Only get involved in property that you can buy for cash. That reduces your risk and saves you a ton of money. Taking loans involves lending fees and, if you only hold the loan for a very short time, you can’t amortize that cost – meaning you cannot spread it out over the years to reduce the impact on your finances.