I appreciate what you are saying, and agree with you for the most part, so maybe I should have been more clear.
What I am really telling Derondal is to look out for people who say this is easily done, and more importantly, easily financed for the average person.
However, regardless of how much profit you think you can make reselling a property (and I know that you are an educated developer), the price you paid is still market value. If you got a good price on a short sale or a foreclosure, that is because no one else offered a better deal for the seller. You paid market value. If you are able to finish/rehab/hold the property and sell for a profit, you made a good investment -- by selling at the current market value. This does not just apply to real estate, but to all transactions. Whatever you pay for something at the moment you buy it is the market value.
Please accept my apologies for arguing semantics.