at 18 years old I bought my first house for $135,000 I have 6 months to fully renovate both inside and out before my college roommates move in later in this video I'll give a complete cost breakdown and how I was able to afford this property this 1100t house includes 3 bed one and a half bath with a detached two-car garage from the title and thumbnail the first question probably going through your mind is how did I have enough money to buy a house at 18 years old in 2017 I started a YouTube channel I was a junior in high school and I started that first year in 2017 I made $177,000 then the following year my senior year when I was 18 I took a little more serious and made a total of $53,000 now all those numbers are before tax as well and any living expenses and all that stuff but I was living with my parents so I could save pretty much all of that money to pay for the house I got a loan of $105,000 put $30,000 down from my savings a 30-year term at 4% comes out to $500 a month on the mortgage payment now add insurance and real estate tax our monthly payment comes to $850 and here a tour of the Interior it needs some work the kitchen had a weird pink wallpaper half the cabinets were stuck shut the countertops were busted cracked and really uneven walking out of the kitchen you go straight into the living room and throughout the house there's original hardwood flooring especially in the living room it's in rough shape and it looks like at one time they had carpet over about half of it the windows were single pane they leaked a lot of air and about half of them I never actually got to open up on the main floor there's also a small bedroom connected to the half bath now now walking upstairs there's a full bathroom with tub shower combo this floor has two bedrooms including the master the driveway is shared and on my side the retaining wall is falling down so the plan is excavate out the old retaining wall scooch it back and widen the driveway thankfully Grant my brother recorded it back then to post on his channel as a freshman in college I was still driving around my high school car a 1999 Cadillac SLS which cost $11,000 and had a leaking head gasket so I was very fortunate to be able to use my dad's 7 Ford F250 being able to borrow the truck and all that equipment really helped me save on expenses and time now we'll shoot forward into the Summer where we started the retaining wall [Music] project first thing to do is get all the old block out and debris with most of it falling over in the drive it wasn't too difficult now I have terrible before and after pictures and they just don't do it justice on how tight the driveway actually was every time I pulled into the drive I was so nervous I was going to scratch the side of the car and if I was going to rent the house out in the future this driveway had to be [Music] fixed doesn't look like it's squatting that bad watch that other one so we got a lot of weight on here this is what got diesel we probably got to take out some more steps yet all this is done so far this is the line where everything's going so we got to take away all this dirt that's all done this dirt you guys see right here we got to take all this out yet but that's some good dirt so what we're going to try to do is is use some of that to like level off back of his yard cuz we didn't realize how much dirt there actually is who knows if this is going to dump it'll be interesting cuz last time it struggled with the concrete we got a lot more weight up [Music] front didn't come out the best but at least we got it out so it's now day two of working on the project but now today Spencer and dad went at 7: a.m. to grab the stump grinder and they're just destroying these stumps the Blade's a little dull so you hear it like it it's taking them a lot longer earlier off camera I took the chainsaw to this spot and removed brush and small trees the red spray paint marks the underground power line which we need to be careful of on this project after working the stumps down we put some fabric in and turned it into a parking spot with gravel now being less than a mile away from campus students drive to this neighborhood to park and walk to class the street parking is well enforced as I later on learned so having proper parking really [Music] pays we got a thin layer just a couple more spots to fill around here SPS how is she wasn't too bad yesterday we grinded a bunch of stumps lots of work over there still so what it cost you total for this 80 7080 another load right hul last time I loaded way too heavy this time I loaded a lot more in the back all right boys we got farmer Grant in the tractor clearing the spot for more dirt to come he's enjoying himself quite a bit as you can tell so we are in a rush right now those are not mine to get to Spencer so this is like part two of the whole build I guess the Landscaping build that we're working on what ended up happening is we got 3 days worth of 3 days worth of stuff done and then Spencer and dad just had like hey let's get the roof done my brother and I had never done any roof work before that and it was slow going at first with the house roof getting replaced we thought we might as well knock the garage out as well underneath the shingles the boards were all in good shape nothing was rotted so all we had to do was replace the shingles after a few luring mistakes we got her finished up and squared away what we got to do is we have all the shingles the old shingles that we ripped off we just tore them off the top and then toss them in the dump trailer me and Spencer have today have to go dump they're all soaking wet good so we just got done dropping off the shingle so we can just focus on uh the Landscaping walls so me and Spence are now just starting to clean up we got all of this taken out there's a lot of dirt we just got this all taken out through here he's spinning four wheel drop baby come on you're better than that Squad question is will the hydraulic power be able to LIF questionably how many times that was close that was real close so we're greasing this cuz I don't think we've ever greased this before [Music] even [Music] you guys are probably wondering why we are renting a machine for the day that's such a waste of money when we already own one and yeah now that I think about it it kind of is but Grant ended up convincing me to rent this thing it kind of came in handy when we jumped into the trench there and got a good nice level scoop it did great a bit better too so when we were slicking up the yard and leveling out some spots that came in handy so I'm not sure what day it is it could be like day eight of this project but first this was completely level there's about between 4 to 6 in all throughout here that we took out but before it was level it was hard clay and so we couldn't get in there this our big skid loader wouldn't fit down there now here's some good pictures showing exactly how much dirt we ended up Excavating out few things we had to be careful of to not mess with was the AC unit we didn't want to disturb that foundation too much and have to move it but also we had to make enough room for the retaining wall and make the whole project worthwhile and this is what it looked like after getting some forms up couple inches layer of gravel and now we are ready for concrete so right now we're waiting to pour C got Cory hello Cory's helping stting all the way down here and working all the way through there [Applause] [Music] just [Applause] so we got it done it's all brushed off put a made a little edging and then next is just going to be retaining walls all the way down this retain wall retain brick now here's a good shot to see actually how much wider we're making the driveway after the concrete dried I came in with the saw and made the cut lines now we need some good base gravel to put as the foundation of our retaining wall so a little change of plans it seems like everybody's always like changing times and like we're Spencer doesn't live here right now so like we're never here and it's like a 30-minute drive up here they called we were supposed to get papers and me and Spencer were supposed to to get started on this tomorrow getting all the papers done they called and they're like oh it's going to be Saturday right now it's Thursday uh and so we had all plan out for Thursday to just work all day on this and so the base takes forever and all we're going to need is like three pallets to start the base so what I'm going to do we're going to drive down there it's like a 50-minute drive down there get the pallet so we got all three of these loaded up these are heavy actually this middle one we might have to do by hand so right now we are completely Stranded the Ford let us down no I'm joking that would never happen the trailer let us down boys got a flat she got [Music] shredded in the end us trying to save a day by going and getting a load ourselves was a wash due to the flat tire and the funniest thing was watching this forklift driver unload the pallet I mean every turn he was skiding the tires slamming on the brakes let's just take a minute and [Music] watch day one of Lane bricks pavers whatever you want to call them we're done probably took 5 to 6 hours 1 hour with two guys cuz I wasn't there and last 5 hours with me just because you had to get this perfectly level cuz we're going to stack this like three or four tall so now we're on to the next [Music] day I felt the hardest part about this build was designing and installing the steps to have them tie into the wall and just getting all your measurements right we had to make sure there was really good compaction on these steps because this is really the only part of the wall that you're going to be stepping on and if settling happens you're going to notice it right away and the of this shot you can see a red handle thingy sticking out of the blocks that was the most efficient tool ever and it turned these 90 lb blocks into pretty much 5 gallon pale buckets and you could have two Handles in one and walk up and down the driveway no problem really easy to move first layer took the same amount of time as all the other layers combined we really took our time making sure it was compact level Foundation that way the whole entire wall all the way up is good to go once you're on a long run you can really start flying and lay down a lot of blocks one guy takes the blocks from the pallet sets it on the wall another comes with two pins that slide into the block there's preset holes already made we came with 3/4 in clean Rock to backfill we had a drainage pipe perforated pipe below this covered in a sock so all through here is completely done the stairs took us forever to design so we're fishing up that and this will have all tops it'll look a lot better than this so it's the final day I guess if you want to call it the final day and the retaining wall is completely done this feels so good I guess there's one thing we have to glue the steps just glue the tops the Caps of the steps for those of you who have already caught this in an earlier clip this is probably the most annoying and worst spot to make a mistake the driveway slopes uphill when you're standing at the bottom towards the street and every time you want to start going uphill and you don't want to keep cutting into the ground you need to step up one block and for some dumb reason I was like oh we'll just step up half a block well what that does is you don't tie in your lines and I don't know how I didn't catch this earlier we caught it when I was gluing on the Caps of the wall and I was not going to go back and fix it I probably should have but at the time it took quite a few more days than I ever thought it would I think we built the wall totally Overkill and especially in this spot it's not even hip high I don't think there's going to be any issues with this wall falling over the foundation is very deep I think it just looks terrible for those who know what they're looking at 34b 83 block okay we're good everything's trapped down let's get going before we BL Tire again [Music] dude and now it's time to get to work on the interior I closed and took possession of the home February 28th 2019 that gives me 6 months to get all major renovation done in time for August 1st movein day the major things on my to-do list are to fully redo the kitchen sand and refinish the hardwood floors throughout a new half bath and retexture walls and fresh paint I planned on hiring out a new roof and gutters all windows on the home and and any electrical work done and we'll start with the kitchen I started off by getting rid of the appliances sold them for $200 peeled off the ugly pink wallpaper that was actually on there pretty good the laminate flooring came up base boards all that kind of stuff the plaster wall where the old cabinets were and a little bit of the backsplash kind of came off with it so that was tough and had to patch it I went with the paint color agreeable gray I thought it would match the kitchen design that I picked out and to pick out the kitchen I pretty much walked into Bernard's saw whatever display looked the best to me and bought it it was clear view cabinet tree it was like 22200 bucks and then I went with all stainless steel appliances as well after watching some YouTube videos in a helping hand from my dad we got all the cabinets hung up we installed all the doors and then countertop went on and this is what it looked like when it was all complete I tried to go with the clean modern look here there's a lot of gray in here some people say that's boring but I like it especially if you're going to come in here and redo everything I learned a bunch on this project especially and I think this was the biggest single Improvement to the interior of the home and in my opinion it turned out great now onto the hardwood floors we'll be turning this rough ugly stained wood into a nice smooth darker glass finish I rented the Sanders from the store and went through a couple hundred bucks worth of sandpaper now it took a bit of technique and a lot of YouTube videos to get this drum sander down properly you wanted to make sure as you were going it was kind of like mowing the lawn but if you ever stopped and that drum was on the ground you're essentially digging a hole into the wood and you're going to feel it forever and for the upstairs I think this sander must have got out of balanced or just messed up and it left kind of distinct lines in the floor and I could never get them out after the drum sander I would come back with a smaller sander to get all the way up to the boards get all the edges going up and down the stairs was pretty tricky sometimes I had to use a Dremel on little tiny spots or just like a hand piece of sandpaper I forget what the stain was called but I was trying to get a little darker finish I didn't want to go crazy dark but I didn't want the whiteness of just like what a sanded floor and a natural looking floor looked cuz there were still stains in the floor and it seemed like they were very prominent when it was a lighter wood so we got our stained let it dry put a couple coats of polyurethane on and I think it turned out pretty good like I said you can still see those lines and scratches I don't know it's probably my fault but in the end everything looks better especially the living room where all the traffic was and my favorite part you can put nice new socks on and slide across the floor really good and it's just so much more durable with the thick polyurethane coating I'm happy with the idea of restoring these not just putting carpet over it or something it kind of kept the charm of the house the old feeling and whenever we wanted a little bit of carpet we just put rugs down now the full bath compared to other areas in the house was in pretty good condition and I wanted to leave it mostly untouched after running the shower I discovered the leak in the plumbing behind the wall and once once I ripped this around out there was a lot of rotten drywood and some 2x4s my guess was that we had a really cold spell that past winter where it got ne20 -30° and it busted the pipe so I repacked it with better insulation put a new surround in and drywall added some finishing pieces to give it a nice fresh look throughout the house I retextured the walls and ceiling with knockdown and orange peel and then in the bathroom I painted it mostly white and also the sink I painted that white I liked how the bathroom turned out and it was pretty cheap to do the downstairs half bath was unique and how tiny it was and that it connected the kitchen and downstairs bedroom together the toilet and sink were leaking with some damage to the flooring so this called for a total redo I went with ceramic tile to tie the kitchen together bought the smallest toilet and sink vanity I could find a new mirror and light and this is how it turned out the bath was still tiny I didn't do anything about that but at least it look good now now on the outside I didn't do all the work myself and hired out replacing the windows with dual pain double hung Windows to keep the previous style the same you'd pop the old ones out Slide the new ones in and then they would come back later with a painted metal trim over the old blue wood and the only real issue I had working with contractors was this window company Spencer has been just getting utterly screwed over they said it was going to be a day and a half to get the windows installed and right now it's been I think 30 days they started day one dude's durmax broke down halfway took him like 3 hours came up with tons of excuses then he got here and it was like only one guy so my dad and my brother were helping them all day just replace out the windows like just basically workers for him and then they like had to get other worker installs cuz that guy like he didn't have a truck anymore and stuff cuz it's kind of all subcontracted out but it's pretty crazy what's happening Spencer's definitely learned a lot throughout like this whole house flip and in the end it wasn't that big of a deal it was more a 3-day job that they promised turning into two 2 and 1/2 months and at one point my dad and I even ripped out about half the windows so that was a good experience there's a lot of bad communication by the company and I was left in the dark for weeks on end at one point I was deciding whether to just go to Home Depot buy new windows and we would replace it ourselves before we had to move in in the end all windows turned out fine and they work good the roof and gutters ended up getting replaced thanks to my insurance guy finding a claim was taken out on the home by the previous owner for some tree damage they pocketed the money and never fixed that damaged area so we were able to negotiate 5,000 into the purchase agreement as a credit on the roof so in the end I only had to pay 3,000 out of my pocket to get absolutely everything replace shingles and gutters now the house is finished move in ready here's some before and after [Music] pictures [Music] [Music] we moved into the house that fall to start our second year of college here some funny home videos nominated by my girl Patricia the first Soldier to get wounded was Allan we have a really big hill by the house he decided to bomb down the hill on his skateboard got some speed wobble at the end and absolutely slammed his Battle Scars was a chip tooth and dislocated shoulder we've been in the house for about 6 months now it's the fallowing spring and I have some outside projects I want to do [Music] [Music] [Applause] [Music] oh [Music] [Music] here's Spencer's new ranger it's got the BF good Rich tires which is an allterrain Tire gosh dang good American right there Ford Ranger the caddy started to overheat I traded it in for 500 bucks and bought this 2011 Ford Ranger it only had like 80,000 Mi on it got it for 6 grand me and Spence are going the next day and we rent a skid loader what happened was we we're planning to use a dump trailer which would save us a 100 bucks but the dump trailer didn't fit the Harley rake in it so we had to cough up the hard box and then use their trailer which worked out [Music] [Music] good [Music] [Music] [Music] now we're about 3/4 of the way done we're getting in there so far we got everything graded and then we got the little side Bank Grass cleaned up as best we could it was so like humpy those go up dude I love this thing this is like a kid in a candy store man Grant liked that rental machine so much a year later my dad sold his John Deere skid loader and Grant bought a track Kabota the skid the you see in my past videos what'd you get here Spencer uh Ryan my buddy here he uh he's got four wheels and 10 horsepower he's good man we got his yard completely [Music] done we laid down some straw bals to help grass get started I broadcasted and used an overseeder that worked really good now I wish I went with a shadier mix of seed because I underestimated how much sunlight was going to be choked out by the mature trees but in the end it turned out great and was nice to mow with the ground being so smooth now once the grass grew and got established we had an open weekend and decided to put a fire pit in the yard it was a good little spot for it out of the way and we kind of indented it into the grass so it looked really clean and turned out good that was the last major project on the house and everything else would just be little fix up and repairs so I'm going to be totally transparent and show you the numbers how I got savings to make that down payment in 2017 I started a YouTube channel and essentially what I do on this channel is play a game called Farming Simulator so I make YouTube videos playing this game talking over it voicing over it and then I post them on YouTube and you can make money off that I was a junior in high school and I started it that first year in 2017 I made $177,000 then the following year my senior year when I was 18 I took a little more serious and made a total of $53,000 in 2018 now all those numbers are before tax as well and any living expenses and all that stuff but I was living with my parents so I could save pretty much all of that money now to fast forward I'm a freshman College I graduated high school and I have some savings built up and I'm trying to figure out what should I do with that I was studying economics and finance kind of purely as a passion for the subject not to go a certain career path not even to get like a corporate job Finance job any of that and at the time I didn't really know what I wanted to do but I kind of always knew I wanted to work for myself so the winter of 2018 2019 my freshman year while I was in the dorms that right there is the dorms I was living in started doing some house shopping I was just kind of toying with the idea somehow take my savings invest into a house fix it up and that's kind of my internship while I'm still doing the YouTube channel on the side there was a public listing that I liked a three-bedroom one and a half bath house it was listed for like $175,000 and then over the winter months they started to drop the price it went from 175 to 170 then it all went all the way down to 160 when it did that I put an offer in a lobal offer for 120 Grand and after some negotiations I bought it for $135,000 and so because I started my YouTube business in 2017 I only had 2 years of taxable income at that time and I needed another 6 months until I could get a commercial loan now if I had a W2 job I could just show how much money that's going to pay me in the year and you can get a commercial loan pretty easy but since I file $199 I'm self-employed I do have three years of taxable income to even get approved for anything and so I found a private money lender and I borrowed $100,000 from them at 4% now keep in mind interest rates were lower back then and so I'd borrow that money for about 6 months is the plan and then I would be able to be approved for a commercial loan after that now with the renovation done we can see how much everything cost the total bill came in at $35,000 roof and gutters was $8,000 Windows came in at $7,000 Plumbing electrical work I had a lot of light fixtures that came in that was $3,000 the retaining wall we did a lot of the labor ourselves but all the blocks the gravel and a few equipment cost came in at $6,000 the kitchen was $5,000 that's cabinets all the appliances and everything and flooring the hardwood floors the paint and all the texture I did on the walls that came in at $1,500 for all those little supplies they add up quick and then for all miscellaneous items I total that to $5,000 so I bought the house for $135,000 then the renovation cost came to 35k add those together you get $170,000 now going into this I thought the house would be worth around1 180 to 190,000 if market conditions stayed the same after my renovation I Ren the two rooms out to my buddies Parker and Allen for 500 a piece now I had to pay for all utilities that was somewhere around 200 250 bucks scenario a is when I was living in the home and running out the two bedrooms scenario B is when I moved out I graduated college early and rented out all three bedrooms each room's rented out $500 there's the difference and that was going to be our gross monthly income now looking at repairs and maintenance I set aside $2,000 a year or $83 a month for that our property taxes were 225 bucks a month property insurance came to 45 bucks a month and then this was $50 a month just for more capex now when I was living there I covered all utilities about $150 a month and when I wasn't the renters did scenario a we're going to have $50 more expense due to the utilities here's our annual incomes then our annual expenses and our net operating income now our purchase price was 135 bucks that comes out to a cap rate of 4% or close to 10% if I rent it out the whole entire Place here's all our loan information and cash out of pocket was about $30,000 after a $35,000 renovation cost though our cash in the house turned to 67,000 our most important number is cash flow I got to live there for $54 a month or $655 a year in scenario B if I rent it out the whole entire house we were cash about 600 bucks a month or 7 Grand a year and 5 years later this is how it actually played out scenario a took place for 19 months where I was living in the home we're $54 so that comes to $1 1,37 negative but then I moved out and snaro B took place where I rented the whole entire home at $600 a month that comes out for 12 months at $7,100 or profit of $6,100 on rental income but going into it I thought I was going to own this house kind of for the rest of my life and if I'm going to go in there and renovate it don't do kind of a half job go in there do everything right everything you'd want to do that 20 years from now you'd be happy you did it but as time went on my feelings kind of changed towards the house I felt like I didn't want to own it forever so 2022 at the time felt like a really good time to sell a house again our all- in cost is 170,000 and I talked with the realer we decided to list it for $220,000 at the time we got eight offers all were above asking or what I was asking asking for it and then three of them were cash and so I chose the highest offer that was Cash $251,500 is what I sold it for this is what the house sale looked like on paper again our total cash invested was 67,000 between the rehab cost and down payment still owed $100,000 on the home so our break even cost is there sold it for $251,500 our net rental income what we took home after all expenses and everything in our pocket our net profit comes out to about $75,000 on the sale and that includes all the closing costs reer fees associated with that but that's how it all panned out it's 2024 we're looking back now it was a good decision should I have held it more maybe I should have kept it in 2022 before interest rates kind of started to run up and I should have refinanced it I mean maybe I'll look back and think that way currently right now I'm totally happy with the sell and one thing too going into this is if I was going to own that home forever I would probably buy more rental properties you know buy one every like 3 years or something and start really building it up and so I didn't want to do that and we got it sold so that's the story of the house it was a lot of work learned a ton made a bunch of mistakes too hopefully you can learn from me I can learn from some of the comments if you have like more in-depth questions happy to answer them in the comment section thanks for watching guys this was fun and hopefully you enjoyed
