And I love when the give the purchase price, money paid to upgrade the house
and the projected profit.
Where is the real estate agents fee for selling the house? How's about taxes
that have to be paid on the profit? Where's the interest paid on the short
term mortgages? Where's the insurance fees? In most cases I see a 'break
even' or even worse.

I don't entirely disagree with you, but in the case of the "flip this
house" show, I think the realtor works for the same company that buys
and fixes the house. I guess they're just showing the profit on the
project before real estate commission and business expenses (which
would include interest, insurance, staff costs, etc.). Of course, we
all know that these guys can't lose, since they are doubtless being
paid for their TV appearances regardless. I do think, though, that
many of these houses do make them some money, even if it is likely
exaggerated for the sake of good television.

I know in my market, and probabaly all over the continent, these shows
have contributed to a surge in small players getting into the
house-flipping market. I've bought and sold numerous properties over
the years, usually renovating them and sometimes renting them before
re-selling them, and never have I had so much competition on the
"buying" end from new entrants to the market. Right now, the prices
are explosive enough that these people likely still turn a profit
despite the high costs they incur buying and upgrading the house, but I
would certainly question the quality of much of the work that goes in
to them. Also, they are true risk-takers, often paying high interest
on their investment money, and leveraging themselves right up to the
maximum possible level.