All language subtitles for The.Flipping.El.Moussas.S02E08.1080p.WEB.h264-FREQUENCY

[Tarek] I like
this neighborhood.
It's cute, right?

-Definitely smaller houses.
-[Heather] Mmm-hmm.

[Tarek] A lot
of detached garages.

[Heather] Long Beach
is a great city.

It's close to the beach,
but still close to LA,

-so, I feel like it's
a great commutative area.
-Yeah.

[Tarek] Long Beach is very
diverse, very eclectic.

[Heather] Plus, we've flipped
homes here.

I love Long Beach.
You're born in Long Beach.

Yeah, we did two houses
in Long Beach already, right?

-So, is this the third
you've done?
-Mmm hmm.

-Look at me stacking up
my homes, huh?
-Look at you,

house flipper extraordinaire.

♪♪ Hey, yeah, oh! ♪

♪♪ Day in, day in, day out ♪

All right. So this house,
I think we paid
$625,000, right?

-$625,000.
-And then,
it's a three-bedroom,

two-bathroom, what, it's
1500 square feet?

[Heather] 1500 square feet.

[Tarek] And the comps,
yesterday we were looking at
was, like, $820,000 to

-$850,000?
-Yeah.

So, I'm just going to guess,
ours is going to go between
$850,000 and $900,000.

It just depends on
how beat up the house is.
Hopefully, it's not too bad.

Well, the contractors should
be here soon.

-Who?
-Ali and Erica.

I set it up. We're meeting two
contractors here, love.

-Since when?
-When?

-You never told me.
-I sent... I sent you
an email.

-When?
-I told you that, you and I
are walking the house first,

and then the general
contractors,

two new ones, we're meeting
here at the house.

And then, by the end of the
day, we're gonna be having

two bids in our hand,
and we're gonna pick who we
want to use.

-Okay, who?
-So there's a guy named Ali.

He's through the office.
And then, Erica, I found her
on social media.

Look at you finding
contractors.

-Um, but let's just see what
their bids are at.
-Okay.

-See if we like them,
see if we vibe with them.
-No, no, it's good, listen,

with the amount of houses
we're doing and the amount

of houses we plan on doing,

we need to always be bringing
in new contractors.

[Heather] Mmm-hmm, okay.
It's this house
right here on the left, love.

It's kinda funky.

[Tarek] All right, well...

-[Heather] Huh. Okay,
here we go, Long Beach.
-Okay.

-[Heather] What do you think?
-It's a little boring
on the outside.

-We have to do something here.
-[Heather] So, let's try to do
a walk-through

and figure out what we want
to do, before the contractors
get here.

[Tarek] Okay.

Oh, this is weird.

[Heather] Why do you walk
through a living room?

But, look,
you missed something.

-What is this?
-Oh, a door!

[Tarek] This definitely feels
like an addition.

[Heather] Yeah, why is this
door popped out so much more
than the house?

[Tarek] This isn't even a
bedroom, this is just a room.
There's no closet.

Okay, so this could be
a great additional
space, then.

-[Tarek] Yeah. A bonus room.
-A bonus room.

-[Tarek] It's a tiny
little kitchen.
-A tiny kitchen, very dark.

This is the living room,
but this is a good space.

I like how this house lives
back here. I don't like
the entry at all.

-So, I have an idea.
-Okay.

So, hear me out.

Why don't we knock down this
whole wall back here and
open this up?

-So, this is all gone.
-Yeah, okay.

[Heather] This could
be dining kitchen.
This whole thing back here.

So, the idea here would
be open this whole thing
up and reconfigure.

-Reconfigure, this stays
living room area.
-Yeah.

And then, I don't know
how often you do this
with flips,

and if you're open to this,
but you know how that room
back there pushes out?

So, why don't we extend
this whole side?

We extend the roofline
and we make it flush
with that.

Well, that's a huge addition.

[Heather] It's a larger
kitchen, larger living room,
larger dining area.

That's not something I would
normally do.

But standing here,
like, looking at the house,

it would make the house
so much better.

Two things. One, how much is
that gonna cost? Two, how long
is it gonna take?

We have two GC's coming,
so we'll find out.

I mean, it's a big project,
but it might work, actually.

[Heather] So,
washer and dryer.

-This is a huge...
-Here we go.

[Tarek] This is a big old
laundry room.

-Look at this.
-And a blue bathroom.

[Tarek] Very blue bathroom.
Look it, this is weird,
though.

This is a full bathroom,
shower bathtub.

-Right.
-Where's the connection
to the bedrooms?

You have to walk all the way
around the house, so this
is an afterthought.

-This was an addition.
-Okay.

-That's weird.
-So, let's so see what's going
on with the bedrooms.

-So, there should
be three, right?
-[Tarek] Yeah.

[Heather] This room is small.

-And where's the primary?
-Wait.

-Huh?
-These are all the bedroom?

-Wait, hold on.
-It's a three-bedroom,
two-bathroom.

So, that's the third bedroom.

What do you mean?

One, two... What's that?

-Is that a bedroom?
-No, it's a bathroom.

[Tarek] Uh-oh,
this is the whole house.
There's no primary.

This is it.

This is it.

-This is small.
-Wait a minute,

-That's not even a
three-bedroom house.
-It's tiny.

It's a two-bedroom house
because they're calling the
front room a bedroom,

-it doesn't have a closet.
-[Heather] Yeah.

So, to make it a
three-bedroom, we'd have to
get the front room permitted

-and add a closet, but we
don't have a primary.
-Yeah,

And then,
there's a bathroom here,

and there's a bathroom
all the way over there?

-That doesn't make sense.
-But look it, that's what
I'm saying,

there's got to be a way
to reconfigure this,

turn the laundry room back
there into the new primary
bathroom,

create an entry from this side
of the house and then this
would be the bedroom.

If we build this wall out,
we remove that bathroom,
we create a hallway.

Yeah, that would be
the only way we could do it.

Okay, I think... I definitely
think it's doable.

-Okay, so we paid $625,000
for the house.
-[Heather] Okay.

So, here are the two questions
that we need to answer.

One, how much is it gonna cost
to remodel this house
with the addition?

-Mmm-hmm.
-Two, what is it going to sell

for with the new square
footage?

Mmm.

[Tarek] This house has
potential written all over it,

and with some much needed
rehab, we'll go from potential

-to high-end residential.
-[Heather] Once we
get permits handled,

the front room will get a
closet, making it a true
three-bedroom house.

[Tarek] Next, we'll create a
large kitchen and dining area

by opening up the kitchen
layout and moving the exterior
wall to match the roofline.

[Heather] We'll also
reconfigure the back bathroom
and laundry area,

so it connects to what will
become our new primary
bedroom.

With the addition,
we're probably at like
$200,000 here.

But then, instead of selling
for $850,000, maybe we sell
for $950,000.

Like, what does your gut say
about this house?

[Heather] Ugh,
it's a lot of work.

-This whole thing needs
reconfiguration.
-The thing is expensive

-and if we do this addition...
-Someone's coming.

Hello.

Hi. How's it going?
Come on in!

-What's up? How are you?
-We're back here.

[Tarek] I'm good,
I'm good. How are you?

It's so awesome
to meet you guys.

-[Heather] Hi.
-Nice to meet you.

-I'm Erica.
-Nice to meet you.

-How you doing?
-Hey, Tarek, nice to meet you.

Hey, nice to meet you, too.

We're waiting
for one more contractor.

Oh, okay.

-How you doing? I'm Tarek.
-Hi, Tarek. How's it going?

-Hi. I'm Heather.
-Nice to meet you.

Nice to meet you. This is
Erica, she's another GC.

-Good to see you.
-Good to see you, too.

So, I'm gonna walk the house
with Erica.

You're gonna walk the house
with Tarek.

We've already walked it.
So, we already know
what we want to do.

But we need your expertise

as contractors to tell us

how much, what,
if it can and can be done.

Yeah, we have some big ideas
for this house, so it depends
if the budget agrees.

So, that's, kind of, where
we're at. So, all right.

So there's no primary bedroom
in this house.

-Okay.
-So, behind this wall is a
laundry room and a bathroom.

So, the idea is to turn it
into a primary suite

and then connect the primary
bathroom to the primary

bedroom, which is
on the other side.

-This down, knocking
this down, opening it up.
-Yeah.

-And, then...
-I'm talking over here, girl.

[Heather] Honey,
can you go over there?
Or go to the bedroom?

Unbelievable.

The addition will go all the
way to the end of this wall.

[Tarek] Yeah. We can
reconfigure things
if we had to.

-Basically, you want to
actually extend the roof?
-Exactly.

-Honey.
-[Tarek] Yeah?

We're done with our tour.

Yeah, yeah. Ali, do you want
to take a look around a little
bit more?

See if anything stands out to
you and give us a few minutes.

[Ali] Okay. Sure. Thank you.

-Okay.
-So, I went over everything
we want to do and she gets it.

She knows what we want to do.

I feel like it'd be
an exciting project.
It's a big project.

We're turning it into a big
project because all the work
we're talking about.

Yeah, and everything
that I went over with you,

is that doable?

Yes, everything is doable.

It just depends on time
and money.

Okay, so how much money
do you think it would cost

to really make
this project happen?

I mean, basically, you want to
remodel this entire house...

-[Tarek] Yeah.
-...like full layout?

-Everything.
-[Tarek] Yeah.

So, to extend about 200 feet,
you need new foundation,
new roofing, I mean,

a full home remodel
around this square footage.

We're looking
in the $200,000 range.

-Okay. Time frame. How long
do you think it'll take?
-Depending on permits, right?

But my team is like, as fast
as you can possibly go.

-[Heather] Time.
-[Erica] Speed is
my middle name.

-[Tarek] Hi.
-Okay.

Okay, can I take
a look around?

Yeah, sure. But it was very
nice to meet you.

-Thanks.
-Nice meeting you.

Nice to meet you, too.

-Thank you so much.
-Yes.

Free to take a look.
All right, Mr. Ali.

So, I looked around
and did some measurements,

and we're looking probably
somewhere in there with a

-280K on the work.
-Uff.

-And you should have some
contingency, basically.
-So it could go up.

It may.

We're looking probably
somewhere in there with a

-280K on the work.
-Uff.

And you should have some

contingency, basically.

-So it could go up.
-It may.

-Okay.
-Yeah, so we need to do some
work before we can decide

-on moving forward with this.
-Yeah.

Well, thank you so much
for coming out.

-It was very nice meeting you.
-Same here.

-Thank you so much, it was
nice meeting you.
-Same here.

-All right. Thanks, Ali.
-Bye.

-Um...
-So, what do you think?

Um, we can't use Ali.
I'm sure he's great.

I'm sure the work's fantastic,
maybe on a different project.

But this one, $280,000 plus
potential change orders,
like, there's no way.

Erica, I love the number.
Like, if she could really do
this house,

with the addition, moving
the walls, for $200,000?

When I was a young
entrepreneur, everybody
said I was crazy

because I would say I can get
this done and they say
there's no way,

and I would pull it off
because I wouldn't sleep.

I'd work weekends, I'd work
nights, and I feel like Erica

-is bringing that
same energy, so...
-She seems ambitious.

She seems eager, but we
just have to watch her work
in detail,

and just make sure that
we're on top of everything
along the way.

Are you good with moving
forward with Erica?

Do you want to try her out?

I mean, at $200,000, yeah.

-Okay.
-This is your find,

so, if anything goes wrong,
it's your ass.

-Oh, yeah?
-Don't you bob your head
at me! Yeah!

We paid $625,000
for this house and
we're still estimating

the rehab coming in
at about $200,000.

With selling and holding
costs at about $70,000,

we are all in at $895,000.

If we list this house at
$975,000, we're looking

at a potential profit
of $80,000.

-Where's the driveway?
-[Heather] This isn't
the driveway, hon.

The driveway is over there.

[Tarek] Nah, we can do
a little off-road. Why not?

[Heather] Okay.
Kill our grass.

-[Tarek] Eh, it's fine.
-[Heather laughs]

-[Tarek] It's fine.
-We're putting in new grass?
[chuckles] All right.

Okay, so I'm hoping
that front bedroom
is permitted.

[Tarek] I hope so.

And I'm hoping she didn't
find anything awful.

[Tarek] All right.
Ready to see this thing?

[Heather] A new front door
will be nice.
New windows will be nice.

All right.

-Dang, look at that!
-Wow.

-Dang.
-[Erica] What's up?

-[Heather] Hi.
-Hey, is this permitted?
The front room?

-Yes.
-[Heather] It is.

Yes.

Thank God.

-How you doing?
-[Erica] Good.
How are you guys?

-Good.
-Excited for our walk through.

[Erica] So, the demo
is almost done.

So this wall from here over is
gone. So, that's now kitchen.

[Heather] Yeah, so it's like
a breakfast nook, pantry,
appliances over here.

-This is all pushed out...
-[Erica] Like a kitchen...

-[Tarek] Island.
-[Heather] An island
here. Okay.

-It's gonna look really nice.
-[Tarek] Okay.

And then from over here...

So this is it. So the new
entry door is gonna be right
here from the primary bedroom.

-[Heather] Yup, bathroom.
-[Tarek] This is bathroom.

And then to get to the
laundry, you're gonna access
it from this room, right?

-Not the primary?
-[Erica] Right.

[Heather] Cool.
So, give it to us.

What did we uncover?

The bad news is plumbing.

-Oh no. 'Cause it's old.
-So, I just wanna give you

an idea by looking at this
totally eroded.

-[Tarek] Oh, my God.
-[Heather] Oh...

-[Tarek] Wow.
It just crumbles.
-[Heather] That's bad.

[Tarek] Yeah.

[Erica] So tomorrow,
the plumbers are coming

and we're going
to run cameras down

so we can really get
a good idea of the quality
of the pipes.

How much erosion there is.

But, if you have to do all new
plumbing, it's... You're
looking at 35,000 to 40,000.

Wait, $35,000.

Yeah.

-If it's all new plumbing.
-[Tarek] For what?

Because we have
to cut into the concrete.

-This is slab on grade, so...
-I have never paid $40,000
to repipe a house.

-That would...
I mean, that is...
-We can't do that.

That's 20% of our budget.

[Heather]
We'll just have to sell the
house as-is right now.

[sighs in frustration]

-Wow.
-That's a big problem because
we were talking earlier

about having a break even
of $900,000 and resale,
maybe $950,000.

I mean, this is going to put
us to $940,000, break even.

I mean, if we really have to
pay that much for plumbing,

maybe we don't blow out
that wall.

Blowing out that wall
might bring more value to the
house, so we can sell it more.

If... and make
our margin bigger.

If we have a smaller kitchen,
like, we just don't know.

-Let's get the cameras
tomorrow and then...
-Then, we'll make a decision.

-[Tarek] Yeah.
-Okay.

[Heather] All right.
Shall we go outside?

[Tarek] Look at this garage.
Did you even see this
last time?

-[Heather] No.
-[Erica] So, this is
the storage area.

-It's raised by five inches.
-[Tarek] Oh, 'cause this was
an addition to the garage.

And look how deep
this garage is.

-[Heather] It's actually
a very good size.
-[Erica] It's massive.

-[Heather] These are
high ceilings.
-Hear me out.

I know that, like, we're
already over budget and we
might be getting hit with

like, a million-dollar
plumbing problem.

But, this could be an ADU.

-This room?
-Both of them.

We can... We can do two
ADU's, so we would have
a house,

an ADU here,
ADU right next to it.

And, the structure is already
here, so, we keep the existing
shell and we build two

mini suites within the walls.

So, there'd be bathrooms,
kitchens, like,
full little houses.

-[Tarek] Yeah.
-Ooh.

Based on the numbers right
now, especially if we get hit
with this plumbing problem.

Best case, we're
breaking even. Worst case,
we're losing a lot of money.

-I think losing.
-[Tarek] Okay.

So, if we really remodeled
that house and we were able
to create two ADU's here,

each ADU would probably
rent for $1800 to $2000
a month.

Which means a buyer can come
in here and get $3600 to $4000
a month in rent.

-Jeez.
-[Tarek] That's a lot.

-[Heather] That's awesome.
-[Tarek] So, ballpark.

What do you think
it would cost to do that?

Two of them? Not one. Two.

Okay, I would have to get you
numbers, you know,
but ballpark $125,000.

Okay, I'm not gonna
hold you to it.

-[Erica giggles]
-But you're gonna have
three houses on this lot.

-I like it.
-The bid is $200,000.

And then, if we do the ADU's,
it's another $125,000, so that
would put us at $325,000

and that's without any change
orders and the plumbing alone
could be like $40,000.

But the good thing is,
we're going to be adding,

you know, 600 to 700 square
feet for only $125,000.

If we can pull 1.1 to 1.15
in value, it works and we
actually make money.

-Okay. Good job, babe.
-Mmm-hmm.

-See? Every now and then.
-See, that's experience.

-Every now and then.
-All right, baby.

-Okay, it was a good day.
-Get out of here.

[Erica] Let's do this.

[Adam] I'm gonna go
with the burger, please.

-Are you really
getting a burger?
-Yeah.

-[Tarek] Thank you. Thank you.
-Thank you very much.

-Oh, missed.
-[Tarek laughs]

You nerd.

-[cell phone ringing]
-[Tarek sighs]

It's the wife. Do not tell her

I got a burger or a Diet Coke.

-Water and salad.
-Gotcha.

-Hi, lovey.
-Burger.

[Heather] Hi, babe.
What are you doing?

I'm here with Adam,
eating a little bit of lunch.

-What are you doing?
-What are you guys eating?

-Salad?
-Actually, yeah. We're at some
farm to fresh place.

I think you'd really like it.
They have a lot of, like,
fresh vegetables.

-Are you lying?
-No, I'm not lying, honey.

-Do you want me to look it up
right now. What's it called?
-Thank you very much.

-Oh, my goodness.
-[Tarek] Um, I'm not sure

what it's called,
but it's good,
farm to table.

Okay. Well, did you
not see your phone?

No. What do you mean
did I see my phone?

Erica sent us a text message
asking to please call her,

that there's issues
with the Long Beach.

-What?
-Yeah.

Okay, hold... hold on.
She sent a video,
one second, hun.

Okay.

[man] All right,
this is the new...

[Tarek] Oh, that's the roof.

[Adam] Oh, it's because
they put layers on top
of the old roof

instead of replacing it
right the first time.

The old owner.

[Tarek] That's not
looking so good.

[Adam] Little crumbly,
isn't it?

-[man] Six--
-[Tarek] Six layers?

[Adam] Four is the most
I've ever seen.

Honey, the whole roof is
falling apart.

-They're not gonna be able
to tie it in.
-No.

It's gonna just crumble.

[bleep]

All right, honey. I'm gonna
conference her in, then.

-Okay.
-One sec, one sec.

-[Erica] Hey.
-Hey, Erica.

I just saw that video.
It looks like we're having
some issues with the roof.

[Erica] Yeah, so basically,
I would put a new roof,
you know, on the main house.

But a new roof is gonna
be very expensive.

[Erica] Yeah,
so all in probably
you're looking at, like,

-$24,000...
-Damn, damn.

...for an addition,
the main house
and the ADU.

[Tarek] Okay, that seems
a little bit high.

What did we hear about
the plumbing?

[Erica] So, you know,
we got cameras down there

and there's massive corrosion,
you know.

So, you're definitely talking
about replacing some of
the mainline in the house.

You know, I think you don't
really have a choice on that.

Okay, so what did the bid
come in to fix it?

It's gonna cost
around $30,000.

-[Tarek] Jeez.
-[Heather] Wow.

[Erica] So basically,
I would put

a new roof, you know,
on the main house.

[Tarek] It's gonna
be very expensive.

What did we hear
about the plumbing?

[Erica] So, you know, we got
cameras down there and
there's massive corrosion.

You're definitely talking
about replacing some
of the mainline in the house.

You know, I think it's
going to cost around $30,000.

-[Heather] Wow.
-So we're talking
about $50,000

for the plumbing and the roof,
which no one's gonna see.

-[Erica] Yes.
-Okay.

I think we're gonna have
to pull in some of our own
trades to bid this out.

[Erica] Okay.
Yeah, no problem.

So let's put starting
the work on hold.

Adam's gonna call you
in the next couple of hours.

We're gonna get our guys out
there and get some new bids.

And if for some reason,
our guys are the same

or more expensive than your
guys, we can use your guys,

but if our guys are less,
we're gonna have
to use our guys.

[Erica] Absolutely.
Whatever you guys
need to do.

[Tarek] All right. Thank you.

-Bye.
-[Heather] Bye, guys.

Damn, dude, that's too much.

-That's way too much.
-Way too much.

Our guys would do it
for way cheaper.

[funky music playing]

[Tarek] Damn! Look at that.

-All right.
-Let's see our house.

[Tarek] Oh, my God!
Look how big the house is.

[Heather] Oh, wow!
It looks huge.

This looks so much better.

I'm sorry.
This looks incredible.

Do you remember how weird
and awkward and skinny
it was before?

[Heather] Look.
Wait, this is all
the pushed out part.

This was the back
of the house right here.

What a great call, right?

Adding that space.
This house feels so
much larger and open.

So, this front room
is now a bedroom.
We're adding the closet.

-Yeah, we have
formal dining room.
-Wow.

This is our huge pantry,
look at this.

-[Tarek] Okay.
-It's gonna be beautiful.

A large island here, kitchen.

[Tarek] I love it, this house
is gonna just come out so
beautiful.

[Heather] It's so cool to see
it framed out like this and
see it all come together.

[Tarek] They already framed in
the ADU's?

[Heather] Oh, yeah, it's done.

[Tarek] Oh, I didn't tell you
the good news.

-Remember, the plumbing issue
was like $30,000?
-Yeah.

And then, for the roofing, her
bid came in, I think it was

like $25,000 or $27,000.

The plumbing repairs and
the roof replacement,
Erica was at $54,000.

Luckily, our subs
got it done for $44,000,
so we saved $10,000.

You know, Erica's new.
So, her initial bid was low.

But with the change orders,
her change order estimates

are coming in way higher
than what we normally pay.

-So, we--
-So, all brand new plumbing
now throughout the house.

-[Tarek] Whole house.
-That's great.

This is probably one of my
favorite projects, I think
because it's so big

and 'cause we're
doing the ADU's.

[Tarek] This just
came out so much
better than I thought.

-Yeah, bigger.
It feels bigger.
-Bigger.

[Heather] Wow.

-[Tarek] I mean, how cute
is this for a younger couple?
-Yeah.

That's why I'm excited
about these ADU's and doing
the design super cool.

I don't want it to be
just like a cookie cutter,
basic design.

I don't want them to look
the same.

Yeah. No, they're way
too nice to be boring.
They gotta be different.

They have to be different,
so people will spend more.

They'll pay more for rent
if it's a dope design.

I agree, and this is
California real estate.

[Heather] Yeah, very exciting.

-[Rejoy] Hi, doll.
-[Heather] Good to see you.

Hi, good to see you, too.

-Ready to make
some more beauty?
-[Heather] Yes.

We have a lot to design.

Ahh, let's start main house.

-Okay.
-Flooring, kitchen cabinets,
backsplash.

-Got it.
-Yes?

Well, you said you wanted
soft, contemporary, modern,

and I think that's a great
direction to go for that
neighborhood.

[Heather] I feel like
Rejoy and I work
really well together.

We've now been
working together
for a few years

and we communicate well,

which is so important
because I can't be
at everything all the time.

So I need to be able to trust
the designers we work with

and she really gets my vision.

-I think these cool tones
are a great direction.
-Mmm-hmm.

And I thought
doing some contrast

-with a little bit more gray
and richness might be nice.
-Mmm-hmm. Very pretty.

For this house, I chose
soft contemporary,

which is clean
and minimalistic,

which will appeal to
the masses and more buyers,

and hopefully it will
bring us more offers.

[Rejoy] What do
you think of this?

We haven't done anything
like this before.

-[Heather] Is that a cabinet?
-Yeah, for the
kitchen cabinets.

-[Heather] Is this almost
like a grayish white?
-Yeah.

-And then, flooring,
just so I can pull it all in.
-So...

-Okay. What do
you think of this?
-I like that.

-So...
-We're doing matte.

Oh!

-Isn't that handsome?
-Yeah.

It is a little bit
more masculine,

-but also feminine, with
these cabinets, I feel like.
-Mmm-hmm.

I know we're doing
a big island.

-Mmm-hmm.
-What if we
brought in, like,

-some wood
on the island?
-Oh.

So it was, like,
that contrast.

-Like, would that be
too contrast-y...
-Oh,

-I kind of
like that actually.
-Yeah.

-That's a great idea.
-[Heather] Pull in--

-[Rejoy] Maybe we
do this on the island...
-Yeah.

-...because I think
it's close enough.
-Mmm-hmm.

Because if it's, like,
perimeter's all this,
island's all that...

-Uh-huh.
-...it might be
too much white.

Like... Like, light.

-[Rejoy] And this will
warm it up. Love that.
-Yeah. Okay.

-So, let's plan on doing that.
-That's a great idea.
I love it.

So, let's go find
a kitchen backsplash.

And then, while we're looking
for the kitchen backsplash
in the main house,

we can pull some
for the ADUs.

-I love it.
-Okay.

-Let me bring my purse.
-Should we take this guy?

And we'll bring
the phone for the budget.

-Phone for the budget.
-[Rejoy laughing]

-Rejoy, do you like this?
-I do love that.

Oh, my God,
what do you
think of this?

Oh, I do like that.

-[Rejoy] Isn't that cool?
-Yeah, that's gorgeous.

These are all too busy.

-Too busy, too busy.
-Too busy, too busy.

-Too rustic.
-Yeah.

Not modern enough.

I wanted these ADUs
to feel special.

I didn't want them to be
just basic designs.

But I didn't wanna go
with a tile that was too busy

because it can make
a small space feel
even more congested.

-I like black.
I like that pattern.
-I agree.

[Heather] If the buyers fall
in love with the look
and it looks high end,

then they're not gonna care
about how small the space is.

Do you think that's too bold?

[Rejoy] Ooh, that
could be kind of fun.

-Oh, let's pull that.
-Okay.

-Okay. Uh-huh.
-You wanna set
'em down here?

-Let's do the paint
the same in both ADUs.
-Mmm-hmm.

-[Heather] So this.
-Like a soft off-white.

The only difference will be
the backsplash pretty much.

-Okay.
-[cell phone ringing]

[Rejoy] I love it.
Is that your phone?

[Tarek] Yeah, it's honey.

-I have a special
ring for him.
-[Rejoy laughing]

I always know
when to answer
or not answer.

-The honey ring.
-[both laughing]

Ah. Hi, babe.

[Tarek on phone] Hey, honey.

What's wrong? You sound upset.

[Tarek] Uh, well, we got
some bad news.

Oh, no.

[Tarek sighing]

We got vandalized, so...

[dramatic music playing]

-What?
-And it's really--

Yeah, it's not good.

It's gonna cost us
thousands of dollars.

[Heather] Hi, babe.

[Tarek on phone] Hey, honey.

What's wrong? You sound upset.

[Tarek sighing]
We got vandalized, so...

-What?
-And it's really bad.

You know how
we spent all that money
on the new plumbing?

Yeah.

-They stole
all the copper.
-Oh--

We're gonna have to
saw-cut the slabs again
to relay the plumbing.

I wanna see photos.

Can you send me...
have her send me photos?

Yeah, I got a video.
I'll send it to you.

-Unbelievable.
-[phone dings]

Let's look.

-Wow!
-Oh, my God.

[Tarek] So not only do we have
to do all the labor again,
we have to buy all the copper

and then we have to pay
to repair the foundation.

-Oh, my God.
-We're gonna have
to open up everything

-and connect all
the pipes together.
-Yeah.

They literally,
probably got, like,
$200, $300 worth of junk...

-[softly] That's insane.
-...and it's costing us...

-[whispering] Thousands.
-...thousands...

-Oh, my God.
-...and thousands
and thousands of dollars.

-[Rejoy] Unreal.
-You think more than 10?

Most likely with delays
and holding costs

-and new copper and labor
and jacking up the concrete.
-[Heather sighing]

It's a lot of work.

I would say...

about 10% of the projects
we do get vandalized.

And the worst part
[chuckling] about it is,

they literally steal thousands
of dollars' worth of stuff

to get a few hundred
bucks for themselves.

A lot of the plumbing
is in the foundation.

It's actually in the concrete.

So they can't
even get to that.

So all they do is cut the top,

cut the copper
that they can see.

And now we have to
jackhammer the foundation.

We have to re-pour
the foundation.

We have to redo
the copper plumbing.

I think what we need
to do is install some
motion sensor lights.

-Yeah.
-So when someone
walks up to the front,

it lights up like Christmas.

[Heather] Okay,
let's get that.

-Okay. Bye, honey.
-Okay. Bye. [groans]

Well, if we had to be
cautious of budget before...

-Yeah.
-...now, we really do.

[upbeat music playing]

-[Tarek] I'm excited
to see this house.
-[Heather] Me, too.

I'm hoping some
of the finishes
that I chose are in.

[Tarek] I hope so.

[Heather] All right.

[Tarek] We got to figure
out what we're gonna
do on the outside, too.

So we need to add something
to give this character.

I'm thinking to do
the board and batten.

Why don't we do something
around the windows?

A little less expensive
to tie in the wood door.

[Tarek] I love it. So it
gives a little bit of depth

and then we can paint that
the same color as the trim.

That gives it a little
bit of curb appeal.

And then, if we fill in like
the planters nice...

Yeah, I just feel like
we need to add something.

It's just that... this is
probably the only flip
we're doing that

I'm really not in love
with the outside.

-[Tarek] I'm dying
to see this house.
-[Heather] Okay.

-Come on.
-Okay.

-Okay.
-You go first.

-All right. I hope you
like what I chose.
-[Tarek] I'd better love it.

Okay.

-Oh...
-All right.

What's going on, guys?

Wait. That's not right.

What's not? Uh-oh.

It's supposed to be
white on the perimeter
and wood on the middle.

[Tarek] Oh, it's flip-flopped.

[Heather] What the heck.

So the wood's supposed
to be there, and the white's
supposed to be there.

Yes, it's wrong.

I don't even know
what to think right now.

I should text Rejoy
and see what happens.

I... Honestly, though,
most likely, this...

we're gonna have to leave this

because, like, we're not
gonna be able to reorder
cabinets and re...

I mean, it's time.
Time is money, you know.

It doesn't look bad.
I know it's not what
you wanted.

[Heather] I don't hate it,
but this was something
that I was really trying,

and this was
a new design style
that I was really working on.

So, it's a little frustrating.

[Tarek] Maybe these
cabinets are in stock.

Maybe it's easier
than I think.

-[Tarek] So...
-[Heather] Okay.

-We'll look into it.
-[grunts]

-[Tarek] This is
our dining, right?
-This is our dining.

-[Tarek] We should do
something on this wall.
-Oh, so...

Speaking of,
more news that's
not exciting, um...

So on this wall,
I was gonna do like
a mural-looking wallpaper.

And then on the side,
it was gonna be wood slats

to tie in, like,
the wood of the cabinets

and, kind of, make
everything look cohesive.

But that was gonna
be like, five grand.

So if we wanted
to do the outside...

Well, I just re-ran
the comps this morning.

If there were new
comps at higher prices,
we would do all of this stuff.

It did the opposite
of what I was expecting.

So now, I'm like,
"How do we spend less money?"

We could possibly paint
and, like, maybe bring in,
like, a lighter gray?

[phone ringing]

[smacks lips]
What's up, Adam?

[Adam on phone]
Hey, what's happening?

-Not much. We're at the
Long Beach house right now.
-Hi, Adam.

You got good news
for me for once?

I never call with good news.

-[scoffs]
-Oh, nice, Adam.

I knew you guys
were over at Coke today,

so I wanted to call and just
talk about budget stuff.

-[Tarek] Hmm.
-We're getting a little
out of control over there.

Oh, okay.

Well, I was just talking
about spending less money.

So what do you got?
Where we at?

Yeah, so, I mean, a lot of it
is the unforeseen things.

And unfortunately,
those were big ticket items.

You know, like, the roof
had all those layers

-and ended up having to spend
20 grand on a new roof.
-Yeah.

The permits ended up being a
lot more than we anticipated.

Just because of the ADUs,
it was more expensive so
we're way over on that.

Wait, hold on.
Where are we at
with the budget then?

We started at 325.

We're pushing
close to 400 now.

-Wh... 400?
-Yeah.

Four hundred?

Four hundred.

[Tarek] Where are we at
with the budget then?

[Adam on phone]
We started at 325.

We're pushing
close to 400 now.

Wh... 400?

Yeah.

Wait, wait. Was that
325 with the ADUs?

It was.

-But...
-We are way over budget.

When we first came
to this house,

we weren't thinking 325.

After the ADUs, we said,
okay, 325, right?

-Yeah.
-This is from the plumbing,
the vandalism, like...

Oh, the vandalism.

That's not including
any exterior work,

any accent walls,
and we're at 400 grand
on this house?

-Yeah. That's concerning.
-Okay...

-But it's a lot of things
out of our hands, you know?
-That's true.

Saying it out loud,
"We spent $400,000
on this house," it hurts.

[Heather] We added the ADUs,

then, the roof
and the plumbing,
that was a major issue.

-[Heather gasps]
-[Tarek] Wow.

[Heather] And then
we had to change orders.

It was everything, really.
And that's actually

one of the issues working with
a new contractor, you know.

You've got to look
at every line item,
and one thing we didn't look

was how much she was actually
giving us for an allowance
for materials.

So her material
budgets in the bid

were so low that

there's no way we can
create a house like this
with the budgets we had.

So we had to upgrade
those materials, which
then pushed our bid up.

[Adam on phone]
Yeah, we do need
to pump the brakes.

-Uh... Yeah.
All right.
-Okay.

-All right.
-Later.

[sighs] Oh, let me
see what Rejoy said.

Man, 400,000.

She said,
"I called the company.

They mixed up the colors.

They can replace it, but
it'll take three weeks to fix.

Or they will give us a credit
for another project."

-Credit.
-Credit for
another project.

-Credit.
-Okay.

So, let's leave
the paint white.

Um, it'll look better with
the new cabinet situation.

This wall will
be a light gray,

the color that I was
gonna do the whole house.

I feel like that'll
look really nice.

And that's less expensive.

[Tarek] Yeah, so, we just,
we finish the house,
we get it staged...

-Okay.
-...and we run the comps.

We need to look and see
what are places of this size

-renting in Long Beach.
-Yeah.

So why don't we hold
a broker's open?

We haven't done that.

We'll get feedback
from the local agents.

That's a good idea,
because they're gonna know
what these are gonna rent for.

All right. Let's do it.

-Okay, you wanna
see the ADUs?
-I do.

[Heather] Two brand-new homes.

-This is cute.
-[Heather] Cute!

-Ooh! Look at
the little kitchen.
-[Tarek] Look at that.

-This is really cute.
-[Heather] Aw, it's so cute.

-I wanna see this bathroom.
-This is nice.

[gasps] It's in.

-[Tarek] Oh, this
looks awesome.
-Do you love this?

-[Tarek] I do. It feels like
a mini hotel room.
-Yeah.

So the backsplash that
I'm using in the kitchen
in both ADUs

'cause they're
slightly different,

I carried it into the bathroom
so it's cohesive.

So in the shower,
there's gonna be one section

that's gonna be
the backsplash of the kitchen.

Love it. Okay.
No, this, I mean,
this is...

This came out way
better than I thought,

-to be honest.
-Oh, this is so cute.

This really is.
This is awesome.

What a great space
for a renter.

-[Tarek] Yeah.
-How cute.

[Tarek] I'm excited.
All right, let's get
out of here.

[hip-hop music playing]

♪♪ Watch the door
hold the gate ♪

♪♪ Hold the weight
never let 'em in ♪

♪♪ Never let 'em win ♪

♪♪ You know we're better
than we've ever been ♪

♪♪ They send 'em in ♪

♪♪ But we'll send 'em back
to training camp ♪

♪♪ Let it be known that
we're the reigning champs ♪

[Tarek] Okay, yeah, we got
everything from the back seat.

-What else is there?
-Can you carry this?

Sure.

You got it or
do you need help?

[sarcastically] Oh, my God.
It's so heavy. Oh!

-What am I gonna do?
What am I gonna do?
-No, it's not!

[Heather laughing] Do you
need me to carry it, babe?

Yeah, yeah, yeah.

The house looks cute.

-Kind of looks like a
cottage, little country flair.
-[Heather] Yeah, it's so cute.

This was my least favorite
house on the outside.

And now, I must say,
it has some charm.

[Tarek] It looks nice.

Let me get the door, babe.

All right.

[Tarek] Aw, it's so nice.

Right when you open the door,

you can see to the
back of the house.

[Heather] I love this.

The brokers are gonna
be here in about 30.

-Okay.
-So we just got to
finish with the staging.

-All right.
-This is gonna
go in the ADUs.

Where does this go?

Um...

I can do that one because
you're not gonna lay it right.

-You don't know
how to fold.
-Oh, really?

-What do you want me to do?
-Can you...

Do you wanna
light candles, sweetie?

Sure, I can do that.

I can't mess that up,
I don't think.

All right.

I really like this
house, honey.

-I like the gray accent
color in the dining room.
-Oh, I know.

[Heather] Such
a cute little area.

[Tarek] Look how
nice it is back here.

-[Heather] Let me see.
-The house just feels
large, you know?

[Heather] Yeah. Do you
love the fireplace?

[Tarek] I love everything.

[Heather] I'm just
so obsessed with
Venetian plaster.

-[Tarek] Yeah, everything.
-Chunky mantel.

I still think we
should've done, like,
wine racks right here.

-I mean, babe,
we spent $425,000.
-I know. I know.

Like, do you remember
what this was?

It was pretty nasty.

[Heather] It was beat up.
That wall right here,
this was so closed off.

[Tarek] Yeah.

[Heather] Adding that
addition, I think, made
a huge difference.

Man, imagine if that was
still the end of the house.

-How narrow.
-Yeah.

[Heather] You know
how tight it would have
looked in the kitchen.

- [Tarek] Yeah.
-Now you walk in

-the straight shot
to the fireplace...
-Yeah.

-...and the kitchen.
-Looks nice.

I like the size
of these, too. Look.

-[Heather] Oh, those are...
-Huge.

[Heather] Yeah.
Those are amazing.

[Tarek] Yeah, and they're
good quality, too.

[Heather] I mean,
this is a lot of storage.

I don't even know
if I could fill this up.

-[Tarek] I must say...
-[Heather] Hmm.

...this house really did
come out just so much
better than I expected.

It actually feels like
a new construction house.

You walk in,
wide open floor plan.

And then, my favorite thing
is connecting that primary
bedroom to that old bathroom,

to create a private
primary suite because

before, it just didn't have
anything that made sense,

and now it really feels
like a truly custom home.

-[Heather] Our
office slash bedroom.
-Oh, I love how this came out.

-[Heather]
These go here, baby.
-This room is huge.

[Heather] Closing up
that door, adding our closet,

now we have a
real three-bedroom.

[Tarek] Yeah, and it felt
very narrow before.
The room feels much larger.

I think this closet
is the biggest in
the house, babe.

[Tarek] Yeah, it's nice.
Well, it's a double closet.

A walk-in-ish.

-No, it really is.
-Let me see.

It's huge. Look.

-[Heather chuckles]
-See? How does it feel?
You always get me.

[Heather] Argh! Sneaky!

Honey?

All right, come on.

Oh, oh, oh, oh. Ha-ha!

-What are you talking about?
I thought you were here.
-Too slow. Oh.

See, I could live in here.
It's so big.

-Okay.
-[Tarek] What else do you
want me to do?

Can you please take
the purse to the ADU?

-Okay.
-Hang the purse
and hang the apron.

Purse, apron.

Purse, apron. Okay?

Purse, apron. Yes, ma'am.

[Heather] Okay. Just hang
them on the hooks.

Okay.

[Tarek] Real nice.

[Heather] Honey, I'm coming.

What are you doing back here?

I was seeing what
it would be like to live here.

-[Heather chuckles]
-I can get my water.

I can work. I can watch TV.

-And how do you feel?
-This is great, though.

Seriously, for even
like a couple.

-A couple, a student.
It's seriously so cute.
-Yeah.

[Heather] And we
have the privacy
with the barn door,

-I know.
-[Tarek] Yeah.

[Heather] So they
could set it up,
yeah, like this,

do some work or table to eat.

But I would eat right here,
watch my TV.

[Tarek] Yeah, it's cute, huh?

[Heather] Yeah,
it's such a great space.

Let's see back here.
Look how nice this came out.

-[Heather] Oh, yeah.
-I like the floating vanities.

-[Heather] Oh,
it's really cute.
-Yeah.

[Heather] But are you glad
that we spent the money

and did the extra
ADUs like we did?

Because we could've
just left it a garage and
left this like storage area?

[Tarek] Yeah, I'm glad.

You know, it's hard
to say what this thing
is gonna sell for.

I'm hoping they say 1.3, 1.4,

but I have a feeling
they're gonna say 1.2 to 1.3.

Eee.

-Yeah, you wanna go look
at the other one real quick?
-Yeah.

-Look it, the security lights.
-Oh, good.

[Tarek] They actually worked.

[Heather] They kept
the burglars away.

[Tarek] I still can't
believe we got robbed.

I'm just glad they
didn't come back.

All right, let's see this one.

Let's see which one
do you like better?
Left or right?

[Heather] The backsplash
of this one is so cute.

[Tarek] This one feels bigger.

It just feels bigger.
I like this one better, too,

because right when
you open the door,
you're staring at the kitchen.

I don't think it's bigger,
but it has a skylight.

-[Tarek] Yeah.
Cute, huh?
-Very cute.

Oh, this is cute, too.

-Yeah, I like the penny
rounds on the floor.
-[Heather] Isn't that cute?

Do you like how everything's
matching, like the shower

-matches the kitchen?
-Yeah.

-All right, come on.
-Okay.

[Tarek] Let's sell this thing.

[Tarek] All right.
People should be coming soon.

I love these
lights, by the way.
These are super cute.

[Heather] I love everything.

You did a great job here.
I love how you matched things.

-Like the countertops
with the lights.
-Thanks, sweetie.

-Oh! Now that we're here--
-Oh. People are here.

[Tarek] Come on in. Hi.

-[Heather] Hi there.
-Hi.

-How you doing?
-How are you?

-[Emily] How are you?
-I'm Heather.

I'm Emily.

I'm Tarek. Yes.
Take a look around.

-Hi. Thanks for coming.
-Nice to meet you.

You know, a broker's open
isn't something we would
typically do, right?

But when you're coming
across a unique property

or a different area
or a specialty type of house,

you need to get feedback
from other professionals.

Hi. Come on in.

For this house, I guess
I'll give you the spiel, too.

[Heather] Give the
spiel as a group.

[Tarek] They know the city,
they know the neighborhood.

So it's very important that
we let them walk the house

and really get their opinion
because, in the end,

their opinion holds
a lot of weight.

-We're just trying
to figure out...
-I'm Heather.

-Hi, Heather.
-...what we wanna
list this house for,

talking to local brokers.

-Yes.
-And we have two
ADUs in the back.

-[woman] Wow.
-And then the main house
is three bedrooms.

So please look around.

We want your honest feedback

and come find us if you
have any questions.

-Cool. Thank you.
-Sounds good. Yeah.

-Gorgeous.
-[Heather] Thank you.

[Mike] I love the openness
as soon as you walk in.

First impression
is such a big thing.

[Emily] Oh, wow.
I love a big pantry.

Yeah, and then the two shades
for the cabinets, too,
is really a nice touch.

[Mike] Oh, yeah.

[Emily] It's a, kind of,
a petite bedroom.

And it makes me feel like...
claustrophobic and cramped.

It helps that the
ceilings are high.

-[Mike] Ooh. I love this.
-Ooh.

They have it set up
like an office.

[Mike] Front of the house.
Lots of light.

-[Nicole] Mmm-hmm.
-[Mike] Great space for that.

Very masculine.
It's like corrugated tin?

But I do, kind of, love
a big, expansive shower.

[Nicole] Okay.
This is so cute.

-[Mike] Yeah.
-Oh, my goodness.

I love the backsplash.

[Tarek] You guys
found my ADUs.

-[Mike] Yep, we saw 'em both.
-[Nicole] It looks great.

So I'm curious.
What do you guys think?

Because, you know,
I'm sure you guys noticed,

it's not a studio,
it's an actual one-bedroom,

-which, I mean,
it's a big bonus for an ADU.
-[both] Yeah.

Not only one bedroom,
it has its own private patio.

Which I think that's huge.

[Tarek] What do you guys
think it would rent for?

[exhales] Just, kind of,
first initial thought,

$1500, something like that.

I mean, it's further
away from the beach.

One bedroom,
350-ish square feet.

There really aren't any comps,

so that's why,
you know, you're here.

We want your feedback.

So do you have a price in mind
that you would list it?

I think you've added a lot
of value in the property.

-I mean, the fact that
there's two ADUs is fantastic.
-[Heather] Mmm-hmm.

[Emily] You know, I love
the bouncing white light.

I love the fact that there's
lots of windows and it does
feel very spacious.

I think the finishes
are really pretty.

I was thinking,
coming in at 1.1

with the hope
of it going to 1.3.

Start lower and
get maybe multiple.

This is a unicorn, and there
may never be another comp.

That is why
you, sort of, price it low

and people go,
"What? All that value?
That's a great deal."

You would make
a huge splash in this area
with all this space.

[Mike] There's nothing
else that has two ADUs.

-The main house there, you
have almost 1,800 square feet.
-[Tarek] Yeah.

So I think you're gonna go
for maybe 1.25?

That seems to be, kind of,
jumping out at me for this.

Got it. Okay.

So, any questions
before you get out of here?

Yeah. When are you
getting it on the market?

I'll start shooting it
out to some buyers.

-[Heather] We're gonna be
listing it very soon.
-[Julia] Okay.

-So bring your buyers.
-[Emily] Will do.

Yeah. All right, ladies.

-Well, thank you.
I'll walk you out.
-[Emily] Thank you.

-[Tarek] Honey.
-[Heather] Yes, love.

-[Tarek] Where you at, love?
-Hi.

-How'd it go?
-[Tarek] It went good.

-Yeah?
-They liked the house.

How about your folks
you were talking to?

They liked the house.

The two ladies
that I spoke to,

rent wise, they both
think a little lower
than what we thought.

They were thinking, like,
1,400, 1,500 for the ADUs,

and maybe 3,000, 4,000
for this main house.

-Okay.
-And then sales price,

one of the gals, she said...

[exhales] You're
gonna get scared.

-Oh, no.
-She said 1.1--

Oh, she don't know
what she's talking about.

[laughing] But she thinks
list low and she thinks
it'll go above 1.3.

All right, so the couple
I was talking to,

he was saying
on the low, 1.25 million,

on the high, 1.35 million.

-I think 1.299 million.
-Yeah?

We've been getting multiple
offers and over asking anyway.

So I say list under 1.3,

and then we'll probably
drive it up to 1.35.

Okay, well, let's talk about
what we would make on that.

So we paid 625 for the house.

Our initial budget
was in the low 200s.

But then after
we added the ADU,

that brought us up to 325,000.

[Heather] ADUs,
the roof, the plumbing.

-Yeah.
-[sighing]

So 325, but we went
100,000 over that.

Yeah, we spent 425,000 here.

[whispering] That's crazy.

And because the
project took longer,

we had 70,000
in carrying costs.

Our selling costs
are gonna be right
around 52,000.

So our break-even
is gonna be 1,172,000.

-Oh, gosh.
-Yeah. It's pretty tight.

If we sold at 1.3 with
a break-even amount
of 1,172,000,

we'd make 128,000.

I think the addition
was worth it.

I think it makes a huge
difference of how open
the space is.

You walk through the door
and it's like, "Wow,
huge open concept."

I really love the finishes.

I love the ADUs.

So I think
it's a good project.

You know, there's
no comps, so...

-I know.
-Who's to say we're
not gonna be at 1.4?

And who's to say
we're not gonna get 1.2?

-[sighing] Okay.
-You see what I'm saying?

We're gonna find out, right?

So list it, like,
1.299 like we said?

-Yeah.
-Okay.

-[Tarek] I mean,
overall, a good day.
-This one's a gamble.

[Tarek] It's a big gamble.

In this case,
our gamble has paid off.

Right before the house
went on the market,
a higher comp came in

and we listed the house
at 1.4 million.

And just over a week later,
we received multiple offers

and ended up selling
the house for 1,425,000.