Original subtitles

[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.