About This Nevada Appeal article suggests that there is a new trend in house flipping. The article suggests that the new trend is rehabbing.
I can tell you that rehabbing has going on for a long, long time. As anyone that has followed the distressed property market can tell you is that when a homeowner is in some sort of financial distress, the maintenance on the property is one of the first things to go. An experienced investor can spot a distressed property while just driving down the street.
For example, in Northern Nevada, a dead lawn, or landscaping is a sure sign that the homeowner lacked the finances to pay for the water. There are others but, for now, this will suffice.
Now, I will agree that some new players have entered the marketplace. They may now have all the information to make wise decisions. and consequently may bid more than the house is worth. This tends to drive the prices higher than the knowledgeable buyers wold be willing to go. The banks are also tightening up in what they will accept to sell the property.