Math question! House flipping math.

[RICHARD]

The 5,000 is just a estimate of the labor put into the house, which I'm sure the people did the work themselves.
The profit when selling the house at 70,000, would be 20,000.

My mistake, I meant 'work' to include materials.

I can see the estimation of labor, but the improvements usually are material purchases - updating kitchens with new appliances and such.

I know that the "This Old House" programs on PBS rely on sponsors -Home Depot and manufacturers to donate to the renovation - so the end investments aren't as pricey as a regular renos are in those cases. I am sure a segment on new technology is as good as a commercial.

[Karen]

I am sure they got many letters/emails/tweets correcting their math!