hi, everyone. welcome to "on the money." i'm becky quick. the renovated home that looked like a dream but turned into a nightmare for the new owners. what they didn't know about a flip when they bought and it what it will cost them. march madness. they won the big trophy, should they take home a big paycheck? the controversy over whether college athletes should be paid. growing old but staying young. the best cities in which to age. what they've got in common and where to find them. the woman making a living as professional mermaid. >> i think i'm a little crazy. >> "on the money" starts right now. >> this is "on the money." your money, your life, your future.

now, becky quick. >> we begin with a cautionary tale. house flipping is hot again and homes are being flipped at the fastest pace in a decade. but if you are tempted to rush in and buy what looks like picture-perfect home, as a buyer you should beware. from flip to flop is this week's cover story as diana olick reports. >> reporter: this historic d.c. rowhouse looks like a renovated gem. outside and in. and that's exactly what empty nesters cameron mcguire and his wife wanted. >> and it was so seductive with all of the high-end appliances and those pieces. we thought it was going to be a dream and it turns out to be a nightmare. >> reporter: the three bed, three bath home had been renovated and expanded by a local house flipper with high-end appliances and finishings. it looked picture-perfect. i am looking at this gore jus kitchen, what's wrong? >> when you look at it, things you wouldn't realize.

receptacles are not permitted the way they're installed here. >> reporter: the list literally goes on and on. improper light canisters. a fire hazard. a bathtub installed incorrectly. the emergency shutoff to the charming gas fireplace is behind the fire. and the new heating system had a 25-degree difference between the two floors. >> turns out there's not even a certificate of occupancy for this property. >> reporter: they only found out because a d.c. inspector called investigating complaints from other homeowners who bought from the same flipper. and then came the killer code vi violation. >> we purchased a three bedroom, three bath unit. and then found out that the bump-out that holds two of the bedrooms and two of the bathrooms, this addition, is illegal. and the city has the authority to make us tear it down. >> reporter: the mcguires are now working with the city to

bring the home up to code, but it will likely cost more than $100,000. and that's on top of the $630,000 they originally paid. unfortunately, stories like this are becoming more and more common as more flippers get into the business. >> a lot of times we'll see where there's termite damage, water damage in a house, it literally gets slapstick right over top of it. so it's lipstick on a pig. >> reporter: steven carpenter works only with buyers and helps them see behind the walls. >> the flippers, the bad ones won't pull permits. at that point you've got a huge issue. because no one's looked at this. >> reporter: the mcguires did have a home inspection, but most inspecti inspectors don't pull permits and they can't see behind walls. experts warn, don't be fooled by fancy finishings because they may be covering up a real mess. >> you are not kid, diana, thank you very much. that's a nightmare. whether you're buying a flipped house or not, how can you find potentially expensive

problems before you buy? frank lesh is executive director of the american society of home inspectors. thank you so much for joining us. we just saw a flipped house without permits and major problems. did they have a bad inspection? how common is something like this? >> it's fairly common. what you have to watch out for is if a house has been totally renovated, everything, not just the kitchen or a bathroom, but the whole house, that's a good sign that it was probably flipped fairly quickly. and a home inspector will go into a little more detail to try to make sure everything works the way it's supposed to. >> what should a complete and thorough home inspection include? how should i feel good about it if i'm a buyer? >> one thing you want to do is make sure you get a qualified home inspector. ashi, the organization i'm part of, has a certification program. we make sure our guys are really thoroughly investigated by a third-party firm. >> if there are problems that show up after the inspection, is the inspect tore blame? could they be liable?

or this is all on me? >> it depends. we can't, like you said, we can't see behind walls. so in the segment you showed, the receptacle that was probably in the kitchen was not protected properly. that's a home inspector could find that very easily. but sometimes slow problems that you may not see, a small leak behind a wall because it wasn't taped properly, could become a problem that an inspector wouldn't be able to see. there are a lot of things the home inspector can do, there are some we can't. >> is this something that has risen in frequency just in terms of how hope flipping has picked up? or has this always been around? >> it's been around, but sometimes in a hot market it becomes more prevalent. because people are trying to turn around houses very quickly. and if a market is hot, a lot of times people forgo the home inspection. that's never a good idea. >> what are some other red flags that i should look for? something that tells me, okay, maybe this inspection wasn't as

thorough or pass boss snilk or maybe just looking around the house myself, these are some things that really should tip me off to make sure i'm extra careful? >> well, keep in mind that a home inspection is done over a few hours' time period. so that's sort of like taking a photograph of a moving train. we see it today, right now. so we can't predict what's going to happen. one thing that you have to be aware of is although we run the water in the bathtub and the shower, we don't get in the shower or in the tub and actually sit in there or stand there. so some things -- >> that's good, i don't want anybody using my tub anyway. >> so it's hard for us to actually live in the house. but we're there for a few hours, so we try to check it out as thoroughly as we can. >> what have been some things that maybe you've found in past inspections, things that have cropped up and made you say, wait a second. >> first of all, the lay of the land around the house is correct, it's not sloping towards the house, everything should slope away. make sure the gutters and down spouts are in place and extended

away from the foundation so that water does not accumulate around the lower part of the house. as far as the inside of the house, we want to make sure that windows and doors operate. those are things that we look for that you can look for as a home buyer. make sure that those commonsense things are there. >> great. frank, thank you so much for your time today. >> you're welcome. now here's a look at what's making news as we head into a new week "on the money." the federal reserve did what it made apparent bite do, raised the key interest rate by a quarter a point for the third time in a little over a year. chair janet yellen said there was a very good reason. >> the simple message is the economy's doing well. >> what does that mean? there is a direct impact on credit card rates, adjustable rate mortgages, home equity lines of credit. they're pegged to the fed's interest rate and go up in conjunction with this fed action. it affects mortgages, auto loans, and bank interest rates.

they go up in part because of the fed's move but there are other factors involved. things like demand for loans and competition between banks. all that sent the markets up on wednesday. the dow climbing triple digits with the s&p 500 and nasdaq showing strength as well. those stocks fell later in the week. retail sales last month were soft. they climbed just .1%, which is either a sign of consumer caution or a temporary slow-down in spending. consumer spending is always closely watched because it makes up more than two-thirds of the the united states. >> next, "on the money" playing for profit. the billions behind march madness. who are the real winners and losers in the ncaa's big dance? who gets left out? later, retiring doesn't mean you stop. it could be time to restart your life somewhere else. the best cities for successful aging. right now a look at how the stock market ended the week.

we are in the midst of march madness. college basketball teams from around the nation vying for the title of ncaa champion. it is not just a sport, it is a business. a huge moneymaker for schools with winning teams. but the players don't see a dime of that. joining us right now is joan astara, a bloomberg view columnist and coauthor of "indentured: the inside story of the rebellion against the ncaa." thank you for being here. you think college athletes should be paid, you've got a plan for it, how does it work? >> first of all, i this think they should be paid because when you have a $10 billion industry with an unpaid labor force, there's something wrong with that. everybody else is making millions. i've been a big proponent of a salary cap idea. which would put money in players' pockets, but not put so much money that it would break

athletic departments all over the country. >> how much money are we talking? >> my argument is they are making money for the university, they are actually at the university, they've been admitted to the university to make money for the university. you can't say that about any other student. >> you could say that about some of the researchers who are there who are helping and doing other things too. >> sure, and who are getting paid. >> okay. i can't imagine how this would change schools. are there schools that would say, forget, we can't compete with this? >> yes, and that's a good then. they can't compete now but they're trying to. they're spending all this money and student fees are getting switched over to the athletic department. >> you think this is the reason college tuition is up so much? >> no. no, no, i don't think that. but if you take a school like rutgers. $25 million to $30 million going from the school to the athletic department. >> rutgers, my alma mater. the argument, if you have a great football team, you'll have lum buy that will help the school's endowment, that will help them give scholarships to other kids too. >> that is true. you take a school like butler,

in back-to-back final fours, admissions were up 25% to 30%. that is true. what's not true is that the eastern michigans can compete in football with the alabamas. and i can -- i mean, the way i think about it is, you probably have 70 universities whose football teams can afford to pay the athletes. fine. fine, they're the one you watch anyway. >> they're the new league? >> they are now, the power 5, that already exists. the other schools can say, we can't afford to pay, we're going to play football differently, we're going to think about football differently. basketball, you probably have 130, 140 schools that can do the same thing. >> are they still students going to classes? >> yes but i would have them go to two classes a semester instead of five. i would allow them to have a lifetime scholarship. >> even after you're done playing, still of a have the option? >> right. one of the problems, they're trying to take five classes at the same time they're working 60-hour weeks on their sport. it's not right.

>> if you start paying your students, does your academic standing as a school fall? does it look like you are no longer a serious academic school because i'm paying the athletes? is there a way to separate that? >> i don't think it makes that much difference. kentucky basketball. usually starts three freshmen, two sophomores, they go on to the pros the next year. does that hurt their academic standing? those guys aren't really students when you think about it. >> no. >> they're what's called one and done. >> is the problem here that the feeder schools -- the schools have become the feeder, you can't get into the nba without doing that. >> that's right. >> it bothers me as a parent to see this get pushed down to the middle school and high school level where my kids if they want to play sports are going to have to start practicing in july to get things going. because it's such a competitive sporting environment. i wish i could push it back to where if you're playing basketball, you're practicing a couple of times a week, not six times a week. >> the world was a better place when the kids played basketball in the wintertime, baseball in

the summertime, soccer in the fall or football in the fall. they were more well-rounded even in sports. >> yeah, and you have to give up significant amounts of family time to accommodate these things. >> absolutely, it's so true. >> give us our kids back. that's the bottom line. joe, thank you very much. "indentured: the inside story of the rebellion against the ncaa." it's always great to see you. up next, "on the money." college towns aren't just for kids. learn which cities rank highest in quality of life for senior adults. there is nothing fishy about it. one woman's underwater business idea and how it is keeping her afloat. you are not going to believe this.

don't call it retirement, but if you are ready for a change of place for your next act, the milken institute released its rankings of best cities for successful aging. paul irving is chairman of the milken center for the future of aging. thanks for being here today. >> thank you, belky, pleasure to be here. >> great to see you. this is a list of not the best places to retire, but the best places to live and age successfully. what's the criteria for that? what makes a city age-friendly? >> we see a range of factors, from health and housing to transportation and the opportunity for life-long learning and continuing work. >> the top cities in both your rankings have big universities or they're college towns. what do places have that appeal

to both younger and older adults, some of these big-city colleges? >> in addition to obviously the opportunity to educate the young, they create opportunities for life-long learning. they are often associated with hospital systems and the opportunity for great health care. innovative transit systems. and i would say most importantly, they attract a group of people who were intellectually engaged, who were entrepreneurial, thinking creatively about improving the world and creating new businesses. and that bodes well both for younger people and older people as well. >> sure. in your large city rankings, utah actually has two of the top four spots. provo comes in at number one. salt lake city comes in at number four. is there something special about utah? >> well, it's interesting. utah is a state that's generally healthy. things like low rates of smoking, low rates of drinking obviously have a positive impact on rankings. but it's more than that. i think maybe the takeaway from

utah is the importance of connection. the importance of communities and neighborhoods. >> the top four small cities are all in the central midwest. you've got two in iowa, also kansas and missouri. so should people be thinking about a second act consider moving to the central midwest? >> it's interesting. these are towns that are relatively inexpensive. iowa city, again, a great example of a college down. the place where the writers workshop and so many other great amenities exist. these are places that have a range of factors. healthy economies, walkable streets, relative safety. you know, the weather may not be ideal for some. but weather is just one factor that should be considered. more and more people want to continue to work, more and more people want to continue to learn. and these places afford those opportunities. >> thank you very much, we appreciate your time. >> thank you, becky. up next "on the money," a look at the news for the week ahead. and diving in head first. one woman's wild business tale of success.

>> as soon as i tried one on, i knew that i was a mermaid.

here are the stories coming up that may impact your money this week. monday the house holds its first public hearing on russia's alleged meddling in the presidential election. tuesday the philadelphia fed releases its latest regional survey of business activity. tuesday marks nine years since twitter's ceo posted the first

tweet. wednesday numbers on existing home sales for february. and it is world water day spotlighting that more than 500 million people don't have access to clean people. friday the durable goods orders for february. those are the bigger-ticket items that last at least three years. starting a business is hard. it can be tough to get people to take you seriously. so imagine if you also wear a tail and call yourself a mermaid. jane wells is here to introduce us to a woman who went ahead and took the plunge. jane, this almost sounds like "splash" in reverse. >> you know what little girls love mermaids. as you know, big girls do too. and with a potential remake of "the little mermaid" as a live action works at disney, a remake of "splash" with channing tatum as the mermaid or merman, one entrepreneur is cashing in. linda wahlberg is a mermaid.

really. you're not a crazy person but do you think you're a mermaid? >> i think i'm a little crazy. >> reporter: linda wahlberg grew up in pennsylvania amish country but ended up in california and became a scuba diver. one day she saw people putting both feet inside what are called monofins to move quickly through the water. >> as soon as i tried one on, i knew i was a mermaid. >> reporter: wahlberg quit her desk job and dove into being a mermaid full-time. >> it took $25,000 to take my first tail. >> oh my goodness. how do you get in the water in this thing? >> i need help. this was truly seven months of high stress. this was us sculpting every scale, molding my body and creati creating fiberglass versions of my legs. having nightmares, waking up talking in my sleep about tails. >> calling herself mermaid lindon, she began getting hired for celebrity parties charging

up to $6,000. >> celebrities taking pictures with me, that was surreal. >> reporter: wahlberg focused on educational videos starting a youtube channel. >> i can make up to four figures a month just on my youtube videos. >> she picked up shoots for "shark week" and began donating time to charity, including this surprise visit to a little girl in scotland who was struggling with illness, viewed over 17 million times. but wahlberg's career went from guppy to whale when she teamed up with body glove. together they created monofins for kids which expanded to leggings. they'll be sold in walmart. next up, monofins for adults. >> in 2017 it's look lying we'll compete $4.5 million in sales. >> reporter: mermaid lindon surprised her skeptics and even herself by swimming you'll stream and succeeding. she's not done yet. >> because you can't just survive on one thing. you can't just rely on income from performances or just from merchandise or just from

youtube. it's about creating a wealth of options. >> yep, from spending $25,000 on a tail to millions of dollars in retail sales, including this stuff. by the way, that tail is so heavy lindon needs help getting to the edge of the water. she's only had one awkward moment. she did a charity event at the playboy mansion and felt like a fish out of water. >> jane, have you tried that thing out? have you been in the water with it? your legs? >> i have. no, i'm not going to do it right now because this is cold, this is the pacific, way too cold. you do move really, really fast with these things. and they're a great core workout, ladies. >> hm, all good selling points. did she really swim with the sharks? >> that was the most incredible thing. she did a "shark week" promo for discovery. she can't wear goggles so her vision is blurry. at first the sharks wouldn't

swim with her because with the tail she's eight feet long, they wouldn't come near. they had to chum the water. she couldn't see them because it was blurry, she had to completely rely on the hammers to keep her safe. >> that's another difference between her and us. >> yeah. >> no way. >> yeah. big, big difference. i'm never swimming when they chum the waters. >> wow, amazing story. jane, thank you, love your tail. >> you're welcome. >> that's the show. i'm becky quick. thank you for joining us. next week we'll hear about athletes making millions and then going bankrupt. one nfl owner is teaching his players business skills for life after football. each week keep it here, we're "on the money." have a great one, we'll see you next weekend.

live at the nasdaq market site on a quadruple witching day. the guys are getting ready behind me. here's what's coming up on the show. >> you're out of hand. >> that's what some traders are saying about the banks. and there's one name in particular that looks vulnerable. plus how would you like to play sprint for a takeout and not pay a dime? >> it's my little way of sticking it to the man. >> we'll show you how. and suddenly nike shares are hot again. >> is it the shoes? >> no, it's not the shoes. it's the charts. and there's something in them that suggests mike shares are going higher. the action begins right now.