A $700,000 Drug House: Before & After.

today I have something special for you he boarded up a drug house so that I walked through on March 31st 2019 was flipped yeah it's a mere seven months later but hey now we get to go through the opportunity of wealth walking through this property before and then after and you get to deal with me making comments along the way I just got a text from another client they drove by this open house and when they saw the boarded up windows they you turned that is literally why people get wedge deals on single-family this particular neighborhood is known for some foundation issues there's like a fault line that kind of runs right around these streets here so we want to see is this going to be one of those houses affected by it or what's the scoop with this obviously it everything's boarded up so it's like your classic wholesale deal now wholesaling typically means one of two things one you pick up something at wholesale pricing kind of like Costco and then you flip it or you buy something and then you sell it to a flipper without ever actually doing any work to the property a property with the yard sale this beautiful qualifies this reminds me so much of hurricane time in Florida when everything hasn't boarded up and we get the hurricane shutters how it with the metal corrugated or a lot of people to plywood but if this were to be turned into a rental property you probably do well to lightly sand these paint them up and you're good that's the what the pro would do the new would probably come in here and go I got to open up the wall I gotta pull permits I got to spend 50 grand on the kitchen a big mistake and if you're gonna flip it maybe you'd want to do something like that but I wonder if that's foreshadowing because we know this is going to be a flip and we know we're about to see the after video ooh what's over here ooh a bedroom with two wheels ooh what's this a two prong outlet hmm I wonder if that ever comes up in the real estate investing course this comes up a lot in our real estate investing course most noobs will look at something like that and they'll say oh means I have to rewire the entire house is horrible it's gonna cost me 10 grand to pull new wires and then cost me another five to fix all the drywall on the walls and the holes we made but that's for a different video right now we have things to explore hmm check out all that gesturing about how much junk there is in the house the good news is if you buy this house you get to keep everything oh I wonder what we're talking about over here maybe some seafoam blue tile a seafoam kind of blue and very common so a little bit of an issue that it looks like the actual entire shower Basin has basically settled down I mean this is a lot that's a big separation right there meanwhile Kevin's inches away from a puddle of blood look at what plumbing you got whew check early on that's a mistake my assumption is all gonna be original it's galvanized the old stuff I'm not your typical kind of a drywall wall this is going to be a laugh at plastered kind of wall you can tell by the plaster which is kind of like concrete being here here's another bedroom so just sort of your basic other bedroom some cracking coming off the light fixture [Music] okay so you actually have four bedrooms so you got one bedroom or all the way on that side with access to its own 3/4 bath then you got this full bath right here which we'll go in a sec down this way we have the original furnace the original Lennox furnace the pilot light is still on so this is a red tag from the gas company be able to change you want to see in the world wow this is on the room that has clearly been fortified and it's got some kind of makeshift bed and angry paint markings on the wall [Music] oh but hey I'll cook you some noodles oh look another bathroom a million things to look at in here of course what does Kevin look at again oh that's a cool faceplate for an outlet look at that you know this is how you know that they've had plumbing issues in the past so if you come around here oh and maybe a little bit of roof issue over on this side so when we walk the outside we want to remember to check the corner over here just to see the condition of the roof but this is what happens when you have to replace the plumbing from here you know down to kind of replace the diverter valve the problem is whoever did the work right here didn't really secure it very well to the left and right and so look what happened when they screwed this in to probably the studs or whatever they actually pulled all the tiling in with it this is pretty cool this is a tiled in medicine cabinet gee I wonder what we might possibly find in mr. RJ's room look I found a silver spoon it's for some reason a little charred on the bottom but ah it is a silver spoon now I'm about to show you the after footage but first check this out you got baited man and trapped on the fishing line you got caught man oh you got hooked and vines literally growing on the inside of the house now you know you have two problems when a vine is growing through a window yet nobody is removing it yeah so in a situation like this usually when a house is in this kind of condition whoever owned it probably rented this house out over time to multiple different people so you probably had you know four different people living in this house maybe even had somebody living in a living room and and then what ultimately happens is the owner passes away and the people just squat basically until they get kicked out these people who were living here probably lived rent-free for somewhere in the neighborhood of a year to two years and then they probably got evicted by the sheriff you know the public administrator comes in says okay we're gonna sell this house and we'll donate the money or we'll use it for public administration whatever I don't know what happens with that stuff but yeah I mean in a situation like this this is probably the classic case where the people that were occupants were like we're gonna get big dude this is so terrible meanwhile they just lived rent-free for a year to resolve on perspective right I actually didn't see that many foundation issues as I thought I would see this is the point where I sit down in the car pull up a spreadsheet and start evaluating whether or not I want to buy the property what I would want to offer how much I think it would cost to fix it up and how I would fix it up which this is also a good point in the video right before we reveal the after to introduce a message from our sponsor if you want to take your real estate investing skills to the next level check out the link below for the online real estate investing of course with private Alliance streams to help you analyze your deal in the in person investing crash courses like San Francisco coming up on November 16 and Vegas on to 2020 now the crazy thing about the after footage is when I did my after walked through I had no idea I had the before footage still sitting on a hard drive from March today we're going to analyze this a flip that was bought for five hundred and five thousand dollars and is for sale for $695,000 let's take a peek let's see what they did and didn't do first things first I noticed when I walk up it looks to me like the roof is still the original roof that does not look like a newly replaced roof now it does look like these windows are newer which is nice honestly this is a this is a big transformation though from what this was this is such a different appeal Wow so first impression really like this door but you can see that it wasn't fully painted here and they left the old jamb see this is where you have to ask yourself how much more would it have really cost to do a correct frame on the front door in my opinion that's cheaping out in the wrong place now this flooring is not bad I'd say this flooring is probably somewhere around a $3 per square foot laminate it doesn't appear to be a hardwood it looks like a laminate and it looks like they used a flat on the baseboard which is a little bit of a newbie mistake because they get dirty pretty quickly now this kitchen was obviously totally remodeled and at the time of the initial walkthrough I had no idea this was going to be a flip but obviously it was a flip and sure enough what do they do they opened up the wall as I predicted a flipper would do fortunately these people actually got permits for doing that unlike most flippers who just do it and pretend the wall was never there in the first place they put the approved building plans in the kitchen this is very smart very very good this is the kind of person I would want to buy a house from if I were ever going to buy a flipped house you could see here 4x4 post 4x4 post this is great super nice countertop the seam could have been done a little bit better but you know what this is where the flipper should really be coming back and keeping up on the grout and sealing things nice countertop really liked that they went with a black style sink problem though they're starting to get kind of this separation here on the countertop as the kitchen settles anew again backyard looks really great I like what they did I just think they made a classic mistake if I not putting some kind of separate hedge here to block from the neighbor you know simple things can make a huge difference roof definitely needs a little bit of love and there is a missing chimney cap to me the chimney cap is just so obvious a lot of people who know they just look at a chimney cap and go come on it's 120 bucks it's not that hard now this is pretty Pro they've obviously had a professional electrician come in and do this because almost every single breaker that's here is an AFCI or an arc fault breakers which is excellent one of these dual breakers right here these 20 amp breakers could run somewhere around 80 dollars that's a lot given that usually the cheapy breakers like this 20 amp one right here could run you around three dollars I've panel full of these roof not forgotten outlet this goes to show that building inspectors just really don't actually check things when they sign off on electric permits which can be a little frustrating it's a little newbie but honestly I like being able to see that and I like how they matted this stone honestly I just painted some stone and I want to mat mine a little bit more because the painter use semi-gloss this is like an eggshell or maybe a satin much nicer for this stone really nice not a big fan though of some of the leftover kind of rot in the corner here now I really like how they finished this fireplace I like it the white painted stone I love this custom made mantel box they put here with this sort of veneer over a dark stain really nice touch but I think they missed a big opportunity by not fire painting the inside of this block black it looks so much better to have this all painted black and then you get that really nice contrast so maybe I'll help them out a little bit here and we'll just stop close the gate a little bit well they painted the key black though that's cool surprising how much black paint can change things now remember when you go through properties like this you can get enchanted by the staging but remember you don't get the staging well you want to look for are things like no ceiling fan but they did add four can lights which is nice this house does not have air conditioning though so I think it was a mistake not to go with ceiling fans which recall they did have two ceiling fans previously I'm also not the biggest fan of the six panel door I think the six panel door is a little bit 2003 and the paint job on the doors it's a little bit along the rough side I'm honestly shocked they chose to leave the original furnace I mean a lot of flippers will do that because they'll just say oh well I'll just credit somebody during escrow but it just doesn't send a good signal that you know all the new electrical and the windows that you just did kind of with the old roof in this original furnace and this old red tag that's still here just doesn't send a good message you know it's one thing to leave a roof that's pretty decent it's another to leave the furnace that's so in-your-face it's literally right there at eye level behind the closet every buyer is going to open yeah the plumber who set this either forgot to put the silicone around the tub spout or didn't set it properly but you've got some regular grout cracking which again you're gonna see on these structural remodels I'm honestly impressed though this is a pretty pro move they got two fully functional drawers in here which I know you might be thinking to yourself Kevin why is that impressive well it's impressive because most people will cut out the middle drawer to leave room for the plumbing but look how flushed they did the plumbing work let's see this vanity is pretty nice yet it's going to go unnoticed by most buyers who don't realize the extra work that went into that plumbing whoo this is a nice window honestly this is an expensive kind of window they spent money honestly on the things they did they spend money to have a nice window like this sort of wheels open they did not cheap out on the things they did obviously I would inspect the foundation work but but the things they did I think they did well this one's tiling is not as great as the other one we've got a few lips and you can kind of really see that from a distance doesn't look as good as it could be but a still a good design I don't think most people will notice I [Music] mean honestly for what it is this isn't bad if I was looking to buy this and I had a new roof and a furnace in this I'd be pretty satisfied you know I'd probably paint the garage just because it's a little matte but not that big of a deal you know you've kind of got the original cracks in the concrete here which this neighborhood is known for a little bit more settling than others so you know to me the most shocking things on this one are not doing the roof and the furnace other than that I think this is a great house I get why they didn't do the roof or furnace but honestly for a flip I think it sends really bad signals to buyers because buyers they're gonna buy something that's remodeled and structurally done they're gonna want it done my pov maybe they're planning on crediting it during escrow but you know what otherwise I'm gonna rate this one an a how can they give it an A+ but definitely an A for the work they did and check out the cat hanging out maybe the cat comes with it hey kitty [Applause] you

Channel: Meet Kevin

Views: 906,608

Rating: 4.7932973 out of 5

Keywords: real estate, before and after, real estate investing, buying real estate, flipping real estate, flipping real estate before and after, real estate flip, mistakes in real estate

Id: -mKglmojdaA

Length: 15min 8sec (908 seconds)

Published: Tue Nov 05 2019