The Dumbest of the Home Flippers...
are the government agencies who are doing it with no regard to profit.
Read HousingDoom's post on a Toldedo Blade story which explains why all those government-planned bailout funds -- or buyout-in-disguise plans for local bond issues designed to do the same thing -- are destined to fail.
In the midst of a national foreclosure crisis, the Toledo-based Neighborhood Housing Services has been buying more houses than it can afford to rehabilitate, Executive Director Bill Farnsel said.
Residents living next to two of the agency’s vacant properties say the houses’ conditions attract rats and other vermin, as well as thieves and loiterers.
I've said this before. Empty houses owned by governments are no better, and probably far worse, than empty houses owned by banks or failed RE speculators. At least the latter two have a good incentive to get rid of the properties. The politicians, on the other hand, have zero capital costs (they just soak taxpayers with the bills) and no real incentive to get deals done. The only thing that will matter to them is the "government help on the way" headline in front of the election.
After that, welcome to ratville.