We paid $5,000 for this house | Before & After Renovation

this video is somehow miraculously and probably sponsored by simplisafe guys we bought a house for five thousand dollars that's right that is not clickbait that is literally what we paid for this house it's five thousand dollars for this entire house who doesn't want to see that hey flipsters i'm lauren and i'm lincoln and we are happily married but not to each other we're old friends from college and we're flipping houses in the austin texas area and we're taking you along for the ride hey flipsters welcome back we got another begging before and after video for you this one is crazy we bought a house for five thousand dollars which took some convincing because it's not in austin it's like two and a half hours away it's near my hometown where i grew up at so you know which i mean i kind of feel like you only bought it so you could go see your mom and dad i love my mom and dad i had some serious qualms about how are we gonna manage a project two and a half hours away from our home office i agreed i will do all the back and forth managing the project and lauren is gonna design the entire house where from the home depot in brownwood texas that's right it has to be in stock in style and available this video is not sponsored by home depot that's literally just the only place we could buy stuff in brown woods yeah so challenge is on i'm getting out to the property right now to take you guys on the initial tour get ready for a crazy one [Music] i want to show you guys this initial tour as you can tell this thing is going to need some work so we're in brownwood texas that's like two and a half hours kind of north northwest of austin it's actually pretty close to where i grew up so i knew the area pretty well and i just couldn't pass up the opportunity to flip a 5 000 house it's complete garbage it's falling down it's got mad code violations the city literally wants to demolish it but we're saving this house from the abyss we're gonna bring it back to life so this is a three bed two bath 1100 square foot house did we mention we bought it for five thousand dollars our strategy on this one's a little bit different we're actually going to keep the house and rent it out once we're done renovating let's get into the house and i want to show you guys the disaster that is this property this porch is like an earthquake happened up in here all right let's get into it wow look at this welcome to your brand new living room i don't know i'm not sure what room this is this i think is a living room you got the renovation halfway done for you got materials that look like like based on this faded coke can are probably i don't know several years old look at this look at this old insulation just piling up it's disgusting you gotta seriously be careful where we're going in here because check this out you can literally see through to the dirt on the ground this house is a hot mess but for five thousand dollars not bad check out sweet amenities of this place you got a creepy bathroom see what i'm working with here i'm afraid to get in there oh there you go look you know you got a vanity you got a toilet let's go check out your first bedroom come on wow it's like a floating island of flooring there's literally no baseboards around this whole thing there are only five rooms in this whole house so it's like a thousand dollars a room this is a thousand dollar room somehow there's a door off the back no need to even lock the front door because this thing apparently is just wide open so that's good [Applause] [Music] this door literally won't lock we've been locking the front door this won't even literally won't lock and you know there was a chain lock but nothing to chain to all right come check out your kitchen oh my god this is disgusting look at this you've got some kind of crazy green room i don't even know what to say about this look at the paint choice the paint choice is really what makes this house terrible this is a crime you paint your house this color green i'm not sure what was going on with that green kitchen i mean someone had a favorite color my guess is it was just somebody doing a youtube channel working from home in their kitchen the green screen yeah can you give me a cool background here maybe like a nice kitchen put me at coachella can you put me on wall street this is a lovely installation custom ceiling oh definitely water damage this roof is completely fine all right let's check out the last two rooms welcome to your cat room this is the cat room wait a minute guys i think i found something it's clues to solve the murder of carol baskin's husband it was all part of carol baskin's plan so we know that freckles was in a game the tiny kitty gang but before they left the house on the night of the 13th they were spotted by a leopard now we need to unwrap the final clue and judging by my keen powers of detective in intuition i would say that the body must be buried somewhere in this house i promise you he's underneath that damn thing all right that got weird let's check out the final room and this is what i like to call the old bedroom off a bedroom here you have i think this is a bathroom i don't know it's tore up from the floor up you know like me on a saturday night and for some reason there's a big tub in the corner oh cast iron tub see what we can do with that probably nothing probably going to throw that away but i know i'll hear about it in the comments if we don't use it but i don't care yeah this is not a door this is actually a broken window that somebody just put a door in front of you know security simply say seriously how have you not sponsored this video yet oh whoa hey uh future lincoln here so this is crazy i was actually watching that clip back and i thought simply safe really would be the perfect sponsor for this video so we got in touch with them and somehow miraculously they agreed to sponsor this video this was the perfect house for simply safe we're two and a half hours away in austin so to have a way to monitor our investment remotely was critical and as you guys saw the security was uh a little lacking when we bought the place but i guess uh i guess that's what five thousand dollars gets you so anyway simply safe allowed us to monitor the house from austin i wonder how lincoln and joe are doing in brownwood this is a nursery if you've been living under a rock and you somehow don't know simply safe is incredibly effective reliable home security that will make sure your home is safe you just order it online or over the phone and it's delivered right to your home and you set it up yourself in under an hour you just stick the sensors exactly where you need them and then from there your home is professionally monitored 24 7. if anything happens they'll make sure the police get called they've got sensors to cover every window room and door plus lots of great extras like water sensors temperature sensors and hd cameras it's all really easy to use and you get around the clock protection for just 50 cents a day with no contracts they've even won u.s news and world report's best overall home security of 2020. so guys do yourself a favor protect your home please visit simplysafe.com flipsters to learn more i'm gonna go meet up with zach our general contractor on this we had to hire a general contractor from out of town because the project's just too far away for us to manage so i did my homework i did my due diligence this is the guy who comes most highly recommended so i gotta go walk through the property with him and go over the scope of work okay guys so i'm not gonna go over the full scope work on this house because basically we're doing everything it's gonna be pretty much a brand new house but for you flipping nerds who want a detailed scope of work i've put a link in the description where you can actually go ahead and download it all right so that is a wrap on the initial tour it is starting to rain there's a thunderstorm on the horizon we got to get on the road get back to home i hope that is not foreshadowing of how this project is going to go see you back in austin so the layout changes on this are pretty minimal first we're adding a hallway between these two bedrooms at the back of the house to give them a little bit of separation next we're stealing some of the square footage from the front bedroom in order to create a laundry room and add more value to the house we're back at the house two and a half hour drive the house is looking a lot different already and i've discovered something i didn't even know was here the guys dug out all this dirt and we discovered there was a sidewalk here in front of the house all along so we found a sidewalk buried under all that brush we're basically archaeologists and then the biggest transformation is this front porch so check this out the old cement porch has been completely removed it was like hanging off and decaying we've reinforced it with some new beams and all we've got to do is add some railing around the edge this is going to be a nice little front porch so we've primed the house and now we need to figure out the paint color we're going to put out to instagram to see what color schemes they think would work with this house and then go from there follow us on instagram at austinflipsters let's get inside real quick i'm going to show you the progress that's going on inside the place okay guys so you got to be careful in here obviously the floor is completely gone here so we had to rip out all the old flooring because we had to re-level the entire house so we actually raised it like eight inches the entire house so that we could properly level it and set it on top of these cinder block foundations so the next thing we're going to do we'll have to insulate underneath the flooring put down all new sub flooring and then ultimately the new flooring will go on top of it i know some of you guys were wondering and yes we did leave some of the cat pictures up on the wall we left the kittens up here these kittens exhibit the curious attentive nature characteristic of all cats that's what this one says i forgot to mention we have officially de-ghosted this house so it's no longer haunted huge upgrade that's gonna add a lot of value i gotta get out of here before i break my neck we gotta get some flooring down so the next time you see this project it's gonna look a lot different i gotta get home [Music] okay so working on the design plan for our 5k house lincoln has passed me with finding all of our selections from the home depot in brownwood texas and just so you know we're not sponsored by them so i went to homepeople.com i searched my location brownwood texas so let's go and see what they have in store so we're going to keep this design plan very simple we're going to choose durable products so they last a really long time since we are keeping this property as a rental for the flooring we're going to go with a vinyl sterling oak is the finish and i think they're going to turn out really nice otherwise in the house we're just keeping the fixtures something very simple on the outdoors we have this kind of nice little uh wall lanterns barn kind of a little bit of a barn look but i think it'll look nice um and it's in stock and available in brownwood so winter winter all right so in the bathrooms i found this very simple vanity you know like i said super simple but also super cheap so that is what we're going for and we're going to pair it with this vanity light i like the clear glass on here it's got a brushed nickel finish i think it's just going to look very clean and have kind of a timeless appeal since again we're hoping to hold this house for a while i'm hoping that we can get some high-end decor in there for staging just to kind of dress it up since we're not doing a huge budget on the finishes in this project i'm gonna give these selections over to lincoln and he's gonna drive two and a half hours to go pick him up from the home depot and bradwood [Music] guys so it is day 21 back here at the house we are less than a week away we're trying to wrap this thing up in about a month which is crazy fast in austin this kind of project would take us a three or four months but the city of brownwood is so easy to work with and i wanted to reveal to you guys the paint color for the house so you guys voted on instagram eighty percent of you wanted to go with this slate blue and the white trim i think it looks good i kind of wanted to go with something a little bit lighter but i gotta admit you guys are right this looks really good that's why you got to follow us on instagram austin flipsters i want to take you guys inside and give you an update on what's going on with the layout for this house and then it's the home stretch we're almost done with this thing real quick we've got railing on our front porch i love the way this looks it gives it that old-time classic charm very nice so the biggest difference right away is we got actual floors to walk on here which is amazing it is july in texas it is hot af zac of all trades our general contractor on this job his guys and girls are working so hard to make this job happen in the texas heat so one of the updates that we did that was not in the original scope of work is we actually put in all new windows to the house so believe it or not these windows installed actually cost more than the house did originally so big expense you know doubling the value of this house with these windows but they're much more energy efficient i think they're going to give the whole house a much more cohesive unified feel and not feel like a brand new house with some old crusty windows [Music] guys this is the first time i've even been in this bathroom before i was just too scared to even come in here it was freaking me out but look i mean it's a whole new room we got our insulation in we got a new tub in next all we got to do is put the surround in waterproof it we're good to go i think this is the first time being in this bathroom as well if you remember before we didn't even have a floor in here to stand on it's gonna be your master bathroom it's small it's cozy but it's looking good hey so you guys voted on the paint choices and we're gonna paint the front door a baby blue like a sky blue to complement the dark slate but i wanted to give you a sneak peek because we've actually already got it on the ceiling on the roof of this covered porch i had heard growing up maybe this is an urban myth that if you paint it sky blue it actually helps keep bugs from building their nests because i don't know they think it's the sky or something and so like wasps and dirt daubers are less likely to build their nests up there i don't know comment below if you've ever heard that before i don't know if that's actually true i don't know if that's science but i mean it can't hurt so the reason we are putting on a metal roof on this house is because we're gonna rent it out right and so we're putting in really durable materials we want it to have as long a life and be as durable and as low maintenance for as long as we possibly can so i know it doesn't look like it but we are almost in the home stretch i cannot wait for lauren to see this thing and you guys are not going to believe the ultimate transformation of this house that cost only 5 000 when we bought it hey guys it's an exciting day we're loading up some furniture we're gonna stage the 5k house today i have still haven't even been out to this thing so we're loading up all this furniture got this big old truck that we rented lincoln's driving it wish us luck two and a half hour road trip here we go [Music] here's the moment i've been waiting for because i still haven't seen this thing yeah uh we bought this thing for five grand we spent like 20 times that on the renovation and she hadn't even seen it so i'm gonna drag you up to brownwood texas it's like five hours round trip and this thing it looks good let's go see it in three two [Music] one [Music] [Applause] this turned out awesome wow what a difference oh my gosh this is like the nicest thing going around here not gonna lie yeah i mean it we may have over improved we may have not followed our own advice i mean i think the exterior turned out amazing so good the flipsters made the right choice with this navy blue exterior and i'm loving this baby blue door how cute it's really cute and a ceiling to match i love the ceiling that is so cute i don't think this exterior could get any cuter i love it i mean it's adorable let's go see how the inside turned out let's do it [Music] this turned out incredible look at this wow oh my goodness it's like a whole new house it is way more than five thousand dollars now i mean look how cute this little space is okay you said you were gonna go a little bit higher end with the furniture i know because our finishes we're a little more planging than we usually like to do we thought we'd mix it up with some nicer furniture so we've curated this collection and i think it works great we always leave links in the description for all the materials and all the furniture that we use in our projects i love the furniture spending a little bit more on it i think was definitely the right call oh for sure this is gonna help the listing photos immensely whether we decide to rent or sell it's just gonna make it look that much nicer let's go check out the rest of it let's do it so right off your living space you've got this bathroom now it is a bathroom for a bedroom but it could be also used as a powder room for guests so i think it's kind of nice to have essentially located it's nice that it's a full bath and listen this is as basic as a remodel gets i mean we went cheap on this thing to save money we didn't even do like our traditional you know tub and tile we did like a pre-fab insert there and look when they're new and clean they look great still looks fresh i wouldn't even go in this thing originally you know because i'm i'm shy but mostly because i was terrified just of even coming in here like what a difference how do you feel now i feel like stopping and smelling the daisies what are these first anthems are they that's not as catchy as rose stop and smell the chrysanthemums i don't even know if that's what they are comments whatever comment below we haven't even talked about the floors these floors look amazing this is a vinyl product you would never know let's talk about this front bedroom that we separated into a smaller bedroom but we gained a utility room people really enjoyed having a lot their own laundry space so i think that was important and also this bedroom because it's located off the main living area it could be an office yeah so let's see that laundry space we added yeah i think it was totally worth giving up a little bit of that bedroom to gain an entire utility room this was clutch i'm going to show you this kitchen because you're not going to even appreciate the transformation of this thing this whole kitchen used to be coachella it was like this awful green screen the layout is a little bit awkward but i think we've done the best we possibly can for this space because this kitchen is so tight we couldn't stage it with a proper uh breakfast table so instead we wanted something to fill up this space so we found this nice console decorated it with some high class literature i didn't know you were so learned you know what i you know it's unexpected just like paris wow paris is unexpected look at this thing it classes it up this like modern minimalist furniture right in the middle of your kitchen boom it works people and i think we originally brought it over here to make it like a tv area in the living space but i think it works great as a kitchen console you can put this in a bedroom i mean it's totally versatile all right let's talk about the rest of the kitchen okay again compact but i mean i think it gets the job done i cannot believe you sprang for the leather granite uh it wasn't that much more i know but still it surprises me you got your cook space you got your sink nice little cute look at this window it's so pleasant but you know what get a little brown wood breeze in here i could do the country life yeah you could totally pull it off i could do the country life and that's what i'm talking about you spend money in one little area makes the whole thing gives it that halo effect yep all right let's check out that square bedroom all right nice size space a little awkward that you've got a door out to the exterior well listen it's not as awkward as it was before because there were pictures of cats big cats little cats and there was literally a murder hole right where you're standing so not to mention you have the awkwardness of going through this bedroom to get into the master bedroom right anytime you keep your bedroom separate that's a good it's a selling feature it's kind of a car for the course yes okay let's go see the finale the master bedroom because it's looking great let's talk about windows we got windows for days in this beautiful master bedroom whoa i'm feeling the exposure it's so much brighter in here let's talk about the staging in this room because i'm loving this rug yeah this is awesome it's like an indoor outdoor rug but i think it's beautiful durable i'm loving the pattern it's like a herringbone yeah kind of like arrows oh i don't know look you've got these other things running through it it's a nice neutral you got your brown you got your gray i love it love this little sitting area yeah is this like a metal uh porcupine yeah what's up there isn't that cool look people you just get you a little porcupine link in description and it classes up your amorphous metal uh side table yeah right and your cute leather chair i actually love this chair for real i know i kind of want one you know where i can find it did we mention there's a link in the description oh my god all right moving on but yeah cute beds and nice artwork and i mean just look at all these windows can you imagine waking up here every morning in brownwood texas just like king of the castle right here living the dream this is a great room master bath very similar to the other bathroom we've just got a very clean bright white space here look at this master staging the rolled up is that a rolled up bath mat don't you feel like you're at like a five-star hotel right now for sure i'm impressed with this house is this the most glamorous house in the world no in brownwood texas but maybe we love you brownwood all right so let's talk about the numbers on this one because it's a little bit different for a rental than what we would normally do for a flip so we bought the property for five thousand dollars and we spent ninety three thousand dollars on the renovation bringing our total investment up to ninety eight thousand dollars now that the house is fixed up we believe it has a market value of about a hundred and twenty thousand dollars our plan is to refinance the property with a loan for 75 percent of the property's value at a market interest rate of four percent for 30 years that would give us a total loan of thousand dollars leaving our cash invested in the property at eight thousand dollars we'll list the house for rent for eleven hundred dollars per month our principal interest taxes and insurance payments on the house will be six hundred and seventy three dollars per month and we're going to allocate 250 per month for vacancy and maintenance of the property that would leave a monthly cash flow on the property of 177 dollars per month bringing our yearly cash on cash return to 26.5 so obviously these numbers are a little more complicated than when we flip the property the reason we're keeping it as an investment property is because brownwood's a much better rental market than austin is additionally we want to hold some long-term assets in debt because we believe there might be some inflation due to a lot of the stimulus and money printing that's going on during the pandemic but that's beyond the scope of the video if you guys are interested in flipping your own houses and learning when you should rent and when you should just sell we have an entire course dedicated to walking you guys all the way through your very first house flip the course teaches you literally everything you need to know from the design to where to find your financing and your contractors check out the link in description the first 25 students who use the coupon code 5k at checkout will get a 25 discount off the course all right man this one was exhausting going back and forth all the time i'm glad we're done i don't know i think we need more of these thank you guys for watching this thanks again to simply say for sponsoring this video make sure you go to simplisafe.com flipsters protect yourself before you wreck yourself thanks for watching this video be sure to subscribe follow us on instagram austin flipsters and we'll see you guys in the next one i think somebody tried to fix the foundation on this house and then they were murdered by a gang of kittens i have no idea what was going on here i have no idea why there's so many holes in the floors i don't know how it got to this point i seriously don't i i can only blame the coronavirus

Channel: Austin Flipsters

Views: 2,331,503

Rating: 4.7481103 out of 5

Keywords: house flipping, home flipping, complete home flip, complete house flip, how to flip a house, house renovation, home remodeling, fixer upper, house flip, before and after house flip, flip house, house flipper, home makeover, home staging, home renovation, house makeover, home design, real estate investing, house transformation, first time flipper, flipping Austin, Austin house flip, $5k house, SimpliSafe, farmhouse, modern farmhouse

Id: ZQ9nIFQN0To

Length: 25min 51sec (1551 seconds)

Published: Fri Aug 21 2020

Reddit Comments

[u/keithforpresident]

They talked for way too long about that console table.

[u/mel2000]

Not a fair comparison since HGTV productions likely have a far larger budget at their disposal. And unlike HGTV rehabs, they did't try to hide the fact that they hire contractors to do all the work. Still, there wasn't much construction education going on, just like HGTV.

At least their show spared us the annoyance of having contractors discover a budget disaster every 10 minutes. Overall, I'm not sure if their estimated $177 monthly rental profit was worth the effort.

[u/Rivsmama]

I'll admit, this reno was pretty awful. I can't believe they actually put the sink where they did.. however, I tried to be fair and give them another chance and checked out some of their other flips and they came out way way better. I think the difference is that their other houses are flipped to sell, while this one was flipped to rent.

[u/BubblyDistribution55]

It’s very nice compared to the before picture Good Reno 👋

[u/VintageBlazers]

What a very underwhelming reno