Original subtitles

♪♪

ooh, I'm hungry.

Do you have any money on you?

-Yes, I do. -Okay. You can buy.

Okay. I got you.

Can I get a large iced coffee, 70 percent coffee,

30 percent low-fat milk.

Get out of here. He's so hollywood.

I would like 70 percent and 30 percent.

Can I please have a vanilla latte.

I'm going to get the egg, turkey-sausage sandwich.

All right. While you wait for your sandwich,

I'll be outside, and then you can tell me

why you brought me to fullerton.

♪♪

all right. Looks like they nailed it.

Why 30 percent milk?

Because it tastes better.

It has a perfect consistency.

Anyways, why are we in fullerton?

Do you remember back in 2005 the first flip

I ever did when we first met?

I do. I got a call from a seller.

He has a house literally across the street.

That's random.

It's a four bedroom two bath, about 1,700 square feet.

They're asking $565,000 so -- what's the condition?

Well, he said the condition is not the best

and it's not the worst.

But I did run the comps, and the value is

probably around $750,000, $760,000.

Oh, that's a great deal.

So when are we going to go check it out?

Right now.

It's literally, like, a 1/2 mile from here.

Better get going before someone else snags it.

Grab your 30 percent milk. All right.

I'll text you the address. Meet you at the house.

All right. Sounds good.

♪♪

you made it! Oh, please.

It's a cute house, has good curb appeal.

This house itself, four bedroom, two bath.

It's a little over 1,700 square feet, so it's a good-size house.

They want $565,000? Yeah.

That was the first house I ever flipped,

four bedroom, two bath, 1,900 square feet.

It has a lot of character. It's cape-cod style, super cute.

It has a huge yard.

Made $84,000, sold it for $770,000.

Not bad.

My first flip was in 2005

which was around the same time that me and christina met.

When I made that quick cash,

I got hit with the house-flipping bug.

Unfortunately shortly after, the market crashed,

and as a real-estate agent, it was really tough.

So a few years later,

I started flipping distressed properties,

and there's been no looking back.

So let's see what we find inside.

Open it up.

Well, it's dark. Look at the carpet.

It's, like, black, but it's supposed to be white.

Oh, my god. Look at the size of this fireplace.

Yeah, we've dealt with a fireplace like this

before in a house.

It cost a fortune to try to get rid of it.

Look at all these windows.

But it's just still so dark.

There are literally cracks everywhere.

There's some weird stuff going on

with the settling on this house.

That's scary.

Let's go to the kitchen.

This is really weird.

They, like, built an oven into the fireplace.

This is a huge eyesore, like, completely blocks off the house.

These lower cabinets right here

are also blocking out that window,

and then plus the window with that little stain design thing

is not helping the light situation.

That's fancy.

All right. So you stand right here.

It has the potential to have a good layout.

It has the potential to have a good layout

once it's completely opened up.

You know what's really weird?

Why would they separate this room?

Looks like an addition.

It definitely looks like an addition.

I wonder if it's permitted.

This room as it stands is not good.

If this wall was gone,

the whole corner of the house would be glass.

These are big sliders.

Once upon a time this was a really cute garden,

but, like, 30 years ago.

All the cement is, like, buckling.

I don't know. There's something going on.

Maybe that's why they're asking $565,000.

Too good to be true, probably is.

Well, he said, "as is," and he wants us to move fast,

so maybe there's something he knows that we don't.

Is jeff coming out?

Yeah, he'll be here soon.

So bathroom one.

Good-size bathroom, actually.

Easy gut redo, $8,000, $9,000, not too bad.

Oh, someone is sleeping here, for sure.

Carpet is really gross.

It looks like mold.

Matches the wallpaper.

Ew. Listen to that.

[ crunching ] ew.

Bedroom number two looks just the same in decor

as bedroom number one.

Uh-oh, we're sloping.

Want to peel back the carpet and take a look?

Go ahead. No, I don't touch carpet.

This is the master?

I mean, it's decent size for a 1,700-square-foot house.

What really counts is the bathroom.

Let's see this thing.

Very '50s.

Where's the shower? It's right here.

You know what? We might be able to expand it.

Let me see what's on the other side.

So the shower itself would be right here behind that.

You know what? Yeah, check it out.

We can easily double the size of that shower.

Perfect. Probably about $10,000 in there.

This bedroom is probably the smallest.

This is, like, the only room in the entire house that has light.

$565,000, huh?

Yeah, what's wrong. Jeff will be here soon.

He should know.

What's going on, you guys?

What's up, buddy? How are you?

Look how beautiful this place is.

It actually is. It's pretty nice.

From the outside. Let me go check it out.

Just come back with good new for once.

See you in two hours.

♪♪

what do you think, good news, bad news?

About to find out. Wow.

Is it good wow or a bad wow?

The outside is definitely better than the inside.

You were right.

How much do you think it's going to cost?

You're looking, like, $81,000.

But I won't how much it's going to cost to remove the fireplace

and the walls in the addition

until I get a structural engineer out.

It's definitely going to be more than $81,000,

let's just say that. All right. I'll let you know.

Thank you. Have a good day.

I think it will be a fun project.

Well, even with all those things wrong,

at $565,000, it's still priced well.

Someone is going to take the risk,

and if someone is going to do it, it should be us.

And with your old house right across the street,

I think it seems fitting.

If that back area is permitted, which I'm going to ask the owner

and he can prove it, with comps in the mid sevens,

we can pay $565,000.

All right. Keep me posted.

♪♪

I got confirmation from the seller

that the back part of the house is permitted,

and I bought the house for $565,000.

The biggest challenge that we have right now is the layout.

But until jeff gets the structural engineer out here,

there is no way to know the cost.

Fingers crossed.

♪♪

-start pulling some of this. -All right.

Breathe it in, all those beautiful smells.

Whoa, it's like linoleum.

Normally if you had major cracks,

you would see the lumping in the vinyl.

Let's go check out that other bedroom.

♪♪

I don't see anything in there. It's just sloping.

I think that's how they poured it when they built it.

What's the causing the cracks?

You're dealing with plaster walls.

Over time it dries and cracks. So now what?

So we'll get all these tiles out of here

and just verify that the concrete here is good.

All right. Well, it's pretty good news.

♪♪

♪♪

jeffrey! What's going on, you guys?

It's still dark in here.

So how much is it going to cost to open this up?

It turns out that all these walls are load bearing.

You're talking about $9,000.

So it's $9,000 to remove two walls.

Well, you have this wall used to be an exterior wall.

This wall is a load-bearing-interior wall

where your fireplace is,

and then you were talking about taking this wall back to here,

which is also an exterior wall.

So: Load bearing, load bearing,

that one around the corner is also load bearing.

Wow.

♪♪

you got an exterior wall,

another exterior wall and an interior wall.

All three walls are load bearing.

How much is that to remove all three?

Be like $9,000. Okay.

How much just to remove the fireplace?

About $4,500, $5,000.

That's a lot better to spend five than 10.

I think we just keep these two walls.

Honestly, if it's all open, it might be too open.

I think it works. Let's just do that,

remove the fireplace, leave the rest as is.

Perfect. That works.

♪♪

removing this chimney is a huge task.

♪♪

not only are we taking out a ton of brick

that's pretty much holding up the roof...

♪♪

we're also creating a giant hole in the center of the house

that's going to need to be patched.

Plus, we still need to pour footings

and add a support wall to hold up the ceiling

until we get the beam in.

♪♪

I just hope this is worth it.

♪♪

jeff: Let me show you guys this bathroom.

So you guys wanted to take this shower,

and you guys were thinking blow it that way?

Yes. Bump it into the closet.

So here's our wall, right...

Right. Behind the shower.

Now that wall is somewhere right around here.

Oh, we can't bring it out because it will block

the doorway. Yeah, it would come to here.

Oh.

So unless you want to sidestep in,

which isn't going to be to code...

Lets go look at it.

So here's what we can do.

We can't expand the shower that way,

but we have space back there.

Right.

Let's push that wall as close to the doorway as possible,

move the toilet from there to where the current shower is,

change the shower location from here,

put it on the back wall and then keep the vanity where it's at.

That works.

How much do you think it's going to cost to make those changes?

Probably a couple thousand. Why is it so expensive?

You've got to move the plumbing for the toilet

from there to there, and now I've got to move

the plumbing from the shower from there to there,

knock out a wall, reframe a wall,

add more drywall.

I think with the amount of money and the price

we're trying to get, we're going to have to do it.

Definitely worth it.

It has a horrible layout right now,

and that shower is tiny.

Okay. Got it.

♪♪

-wow. -What a difference.

It's like a whole different house.

Be careful. Yeah, oops.

Can you believe this was fireplace?

You can literally see the cutout.

Oh, my gosh. It's crazy.

They found a really unique cabinet color,

and I wanted to run it by you.

What if we do lowers this color and uppers white?

Then we can find a flooring that looks nice on both.

I like it. I think they're super cool.

I mean, they're kind of a mixture of, like,

a gray and brown.

Yes, I love it too. Let's talk layout.

It would look good if we did a peninsula

because it's uniform, but I feel like for this space,

I think we can pop in an island.

I think two-tone with an island will look more modern anyways.

Appliances-wise, stovetop, microwave,

we can do sink, dishwasher over here

and then we'll pop the fridge in right her.

Great layout, much bigger kitchen, super open,

it's going really nice.

♪♪

well, it's nice and red in here.

What a difference in the space though, huh?

Yeah, we got lucky with that closet.

Totally works, huge shower, now let's design.

So we have these, modern play on a subway,

shower pan.

So we have a few options.

What are you feeling?

I'm leaning towards this.

This is definitely a risk, but I feel like this house

has that kind of cool, hip feel to it.

I think that is too busy

and there's not enough natural light,

and it just feels a bit claustrophobic,

so I feel like in this bathroom it looks a little bit weird.

This is a tough one.

I agree with you.

I think that we should do this white tile

all along this wall with the same floor tile on both sides.

I think we just got it.

Vertical on this wall, right?

Vertical right here, and do this entire wall.

Perfect. And then shower pan.

You want to do the gray shower pan?

Yep. Got it.

It's going to look beautiful.

♪♪

♪♪

how's it going? Hey, you scared me.

I love it.

I'm very happy that we ended up with this tile, the gray tile.

Yeah, the flooring, the way it plays off the shower walls.

Everything ties together so nicely.

It was definitely the right decision.

You want to help? No.

I'm okay. You sure?

I'll leave you to it.

♪♪

oh, fingers! Ow!

Wow!

Pretty! I love the color.

The color is beautiful and I love how they're inset.

Oh, my gosh. I brought a lot of stuff.

Okay.

♪♪

well, first off, we need to figure out

what goes best with these cabinets.

So let me see what you think.

No. No.

These cabinets are interesting

because they pick up a lot of different tones.

Like, depending where the light hits them,

they almost could be, like, an olive green,

and then I see a, just, gray back there,

and there's hints of brown.

So I feel like that blue, it picks up a really weird tone.

The one on the left is a little too trendy

and people might not like it.

I think this is the one. It's simple.

It's white, but I love that it has the detail in it.

Yeah, it looks really pretty with the cabinets.

Oh, that's going to be beautiful.

Yeah. I like it.

It has, like, a transitional vibe.

Which countertop though?

We should look at flooring and then decide.

Let's do that.

I would say with the cabinets, lighter is better.

Do you think this one could actually look cool.

That's my favorite. Okay.

I love this one with the plain white quartz.

Yeah, I really like how it plays off this.

It has, like, that rustic feel.

Yeah. Really pretty. Let's do that.

Let's do this, this, this.

So we have our backsplash, countertop, flooring throughout.

Okay. I'll get it ordered.

♪♪

this is all fine, this way over. We just...

Obviously we're going to paint the stucco to match the house.

We'll add some flowers and plants.

It'd be really nice to put some herbs in there.

Herbs? Yeah, like a vegetable garden.

Okay, here's what we'll do.

I'll go let you talk to jeff to figure out what you want

to do in the planters, totally up to you and him.

The stones, the rocks, these look fine.

Before we had this, like, covered patio-gazebo thing,

and it's gone.

Get rid of the concrete and put some plants.

The concrete is staying.

There's cracks, it's at different levels.

It's like a trip hazard.

We have no money in the budget.

Like, times are changing.

We can't just keep spending anymore.

It's really, really tough.

I get it.

Buyers in this price range expect nicer patios.

We need to do something about this concrete,

but it can't be expensive, and it has to look amazing.

This is going to be tricky.

I'll figure it out back here.

I'll surprise you. Perfect.

♪♪

this is lifting right here.

It's lifting there. That's attached to the house.

It's cracking there.

What do we do with this disaster?

Well, I would think you just tear it all out,

re-pour new concrete.

We're talking about removing all this concrete, demo, dump fees,

and then we're going to have to pour new concrete.

Now that's going to be a fortune.

So to do everything you just said, $2,800.

$2,800 just for this area?

$2,800.

There's got to be a better way.

There has to be. I cannot spend almost $3,000.

There's no way.

♪♪

I cannot spend almost $3,000.

What's our other solution?

We could go put mulch in here.

We can run some rock maybe through these cracks

that are through here.

Don't get me wrong, your concrete still looks ugly,

but it's definitely a lipstick on the pig option.

It'd probably be about $400.

It's really just throwing away $400

if not more because buyers are going to walk back here

and this is not what they're going to expect.

And if they don't get what they're expecting,

they're not going to buy the house.

Your other option, tear it up, pour new.

If we're going to spend the money,

we can do a little bit extra so it just doesn't look like

boring bland concrete is my thought.

Okay. So here's what I'm thinking then.

Watch your shoes.

So if that's my outside, what if we did band on the inside

that's solid.

I like that.

Kind of run some diamond scores, that way it's just not so plain.

That's going to look nice.

I mean, I feel better about it now.

If I'm spending that kind of money,

we're going to have a beautiful designed patio.

That's what people are going to expect and I think

it will help us get the most amount of money possible,

which is what we're trying to do.

Yep. All right. Let's do it.

Good deal.

♪♪

♪♪

throw this thing in here? Yeah, buddy.

A little bit of adhesive down.

Watch your fingers.

You on there?

Man, this island looks killer.

Once we get the backsplash in with that really cool

3-d design, it's going to be awesome in here.

I think this house is going to sell fast.

It looks like a good house.

♪♪

hi. Hey, I got a question.

Don't those look kind of green like the color of your shirt?

It's going to look better once all the tiles are up

and the walls are painted.

No, no. I actually kind of like it.

I like how it plays off the floor.

It has a cool, like, rustic, modern vibe.

What do you think about that backsplash?

It's actually a little more simple

than I thought it would be, but it looks good.

♪♪

oh, painting are we?

Oh, yeah.

I picked some pretty cool colors.

What's that orange I see?

I was thinking we're going to do body of the house

gray, white trim.

Front door, orange.

I know you...

Or just keep it simple and we stick with the black.

I like the orange.

The orange might work.

It's kind of cool, kind of different.

What else are we doing out here?

It's looking a little sparse.

Pretty much wherever you see bare areas,

we can add much and flowers and some plants.

Okay.

House gray, white trim, orange door, done.

Game plan.

♪♪

tarek: This house looks way better.

Christina: It has a rustic feel now especially

with the front door color.

Hi, how's it going? Hi, how are you?

Good! How you doing?

I'm john kohaut, I'm getting ready

to list the house across the street

and was hoping that I could find out some information

about what you guys have going on?

Which one across the street?

It's two stories.

The one literally two doors down to the right?

Yeah, with the two dormers.

We just got to make sure we don't list it at the same price.

That flip is definitely haunting you.

First we show up and it's, like, right across the street,

and now it's coming back on the market.

Well, clearly he came over because he knows

we remodeled the house and he's dying to know

what we're going to list the house for.

Right, aren't you dying to know what he's listing it for?

Yes, because if we come in way too high,

and they come in lower, we're going to look really bad

and we're going to sit on the market and not sell.

So what were you guys planning on listing the house for?

Somewhere north of $750,000.

What about you? Well, good question.

When you are you guys listing?

Within the next week.

How about you?

Within the next week? So you sure you don't want

to tell me what you're listing it for?

You won't tell me!

Well, we're not making a lot of progress here.

♪♪

are you sure you don't want to tell me what your listing for?

Yes, I'm sure. All right.

Well, we're going to be coming on the market the next few days.

Okay. Once I see the sign in the yard

I'll give you a call, figure out what you're listing at.

Absolutely. So nice to meet you.

You too. Nice meeting you.

Good luck. All right.

So the numbers on the house: We paid 565,000,

so with the rehab and the staging we spent about $93,000.

Our break-even is going to be $688,000.

All the comps I'm finding are up the hill,

and it sells for more that way,

and those are selling in the high sevens.

So what do you want to list this place for?

That house is better than this house.

He thinks upper sevens.

So for sure I say we don't go above eight.

What do you want to do?

I think $799,900.

Oh, my gosh.

You just said that house is nicer.

Now he's going to come on the market lower than us.

I'm going $799,900.

All right.

You're the boss.

♪♪

♪♪

hey! When I was pulling up,

I saw that the neighbor has a for sale sign.

Tell me they listed higher than us.

They listed at 765,000.

And we're at $799,000.

Yeah. That's crazy.

I'm seriously thinking about dropping the price

right now, like...

Well, let's see how today goes, and...

Oh, my gosh.

Well, hopefully it looks beautiful.

[ sighs ]

I'll tell you what, that fireplace

was the worst thing in this house.

It blocked the entire view. It looks so much better.

I mean, the space is amazing.

The two-tone cabinets look perfect.

Love them, love the backsplash, it's really pretty.

You know what I love about the backsplash is, like,

the three-dimensional look. It really pops.

I like how there's an eat-in kitchen area over here,

formal dining room, all the beautiful windows.

Oh, did I tell you that I had them redo the concrete?

Oh.

This actually looks cute out here.

Great decision.

And most importantly, I love the herbs.

Beautiful, beautiful.

I love how they staged it with all these plants.

The bathroom looks nice.

I love, love the coloring.

You know, everything looks very big.

It looks very contemporary.

All right. The master.

The closets are huge.

This room looks really nice, a beautiful view.

I love this.

The design looks amazing.

It really did come together.

Removing that closet was definitely the right decision.

I am probably 95 percent sure

we're going to have to reduce the price.

Well, let's set up and see what people have to say.

Woman: This is beautiful.

Woman: I like that blue-gray color.

Oh, my gosh.

Wow. This is beautiful.

I like the color of the floors especially.

Like the white, I don't see it that often.

And look at this countertop and the tile,

kind of simple, but pizzazzy.

Wonderful area out here, maybe we can put a fire pit?

You could plant a lot of good stuff back here.

Tarek: The open house went great,

but to be competitive with my old flip,

I had to drop the price.

And I ultimately sold the house for $770,000.

After closing costs and commission,

if this deal goes through,

we stand to make a profit of almost $80,000.

Time to find another house to flip.