Flipping - misrepresented in the news!

[Nancy L.]

I read this Philly.com article today about a 20 yr rehabber... (Philly.com is the website for our local Philly newspapers.)

http://www.philly.com/philly/classifieds/real_esta...

Anyone else find it troublesome that the article overlooks so many of his costs in computing the profits on the project profiled? They have stated his profits as: 

Profits = ARV - (Purchase Price + Construction Costs)

No mention at all of carrying costs, loan costs (he's using hard money!), closing costs, etc!!! I don't think it's a good thing for anyone when people enter the business with misinformation and unrealistic expectations based on what they see in the media. It's one thing when house flipping shows misrepresent all this, but this is a news article and is something people consider as a dependable source of accurate information!

If anyone else has the time and inclination, I'm sure the Philly.com and its readers would appreciate your comments and emails.