Do the basic rules of flipping apply?

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Hey Bp, I've spend most my time on here learning up on multi family/buy and hold investing but I have a strong interest in flipping and developing (I on my way to being a contractor/builder) so naturally I'm always on the lookout as I drive,for potential areas to eventually invest. I just noticed a property that was in terrible condition with a for sale sign so I looked it up and found it was selling for $895000! Trying to find comps and the house next door sold 3months ago for $870000 and that's fully rehabbed. So what's the deal here in la? Do the rules of flipping not apply? Or is there a difference when buying for developing (my assumption is that a developer purchased it) Some insight would be appreciated Thanks