Why You Should NEVER Buy A Fix And Flip House | THE HANDYMAN |

okay I got a treat for you today it's actually a treat for me got a call yesterday from a realtor do I then I do a lot of work for and he said hey handyman can you go clean out the garage of a house that I'm listing this is a quote the sellers were too lazy to empty the garage and I said well no I can it was Saturday and he and I got to thinking about it and I said well could be easy money I can do it tomorrow morning which is today Sunday and I said what part of town blah blah blah so many ways he sends me the address and I'm on my way down here and I'm looking at this address and the GPS I'm like man this house looks familiar so this is a fixin flip I think and I gave an estimate last summer summer of 2017 and the lady who was doing this she was like a super bargain shopper for the labor and you know using because it's not a not an occupied house they didn't need skill they didn't need it they just needed a a quick fix and flip a my prices i priced myself out of it on purpose but it is going to be interesting to see what's inside this house hopefully I can see inside but I can already tell that the house has been painted gray and they got like a new fence so let's go see what we're in for all right this place was a disaster complete disaster when I came and looked at it we honest first first look it looks pretty darn amazing this was an original 1960 seventies style so this this beam here was a wall the door here and a doorway there had brick paneling this is pretty impressive looks pretty impressive and that's what catches the buyers eye this bathroom was crazy different I mean it looks really nice but I think once you crawl up into everything you'd be very surprised how do you get to the basement there's kind of an example of a fix and flip complete daylight underneath the door huge gaps look at where this was cut and it's not even a straight line on the front door I'm in the basement and this was what I was going to build here is this bathroom it's all chopped up and had a weird layout man it really looks nice I'll be honest I like the finishes it's real nice so it took them I think it was probably July when I came to look at this house and it is now March middle of March well it's not too big of a deal I'll get in one load not sure about this washing machine in microwave though what they want to do it though they may want to sell those so I spent 15 minutes it was in the pile I swept up the floor problem is I can't get a hold of the realtor this washing machine in microwave not sure what they want with that they got a brand new sheet of drywall half sheet of drywall and paint that I'm assuming I would like to go with the house because it's all the paint colors it just went in there and light bulbs I don't know I was thinking when I was doing this estimate the lady who was doing this fixing flip like she was like full-on right off the television screen like all amped up and talking fast and there was a painter that came in and he gave an estimate on painting the whole place and he did a written estimate right there and I give idli remember him handing her his estimate and her looking at it you know oh no no this is way too high and like tried to do negotiations on the spot with this painter at that point I was just thinking to myself this this is not the type of job I want to get into in this lady she wanted this thing flipped in one month one month that was last July and here it is March of the next year and it's finally gonna be put on the market and be careful if you go to work for a fix and flip type situation there they are notorious for nickel and diming their labor they will spend like those giant tubs you saw in there they'll spend the money on the finishes but they will not spend the money on the labor to install them it's just I usually work for the people who end up buying a fix and flip redoing a lot of the work that went into creating the shiny mess as I call it you're buying one me and I would get a good home inspector and that home inspector should also be the quality control on just fit and finish and workmanship not just like is there a belly in your sewer line or if you've got enough smoke detectors or carbon monoxide detectors have them be your quality control and you could probably negotiate quite a bit off the price depending on your area so this house may already be sold I'm looking on Zillow says it was last sold the lady who bought it to flip it paid 395 for it and says it's not currently for sale but this is the updated listing it's been fully staged where it's got it's all furniture in there appliances couches you name it window coverings fully furnished in the photographs here I'll show you the kitchen what they got so this not sure if you guys can see it is how it looks staged in the Zillow ad so it may already be sold this has been on the market for a long time they originally listed this last October for six hundred thousand price changed dropped it to five eighty nine price change dropped it to five 75 sale pending back on the market price change dropped to five sixty sale pending back on the market five sixty sale pending back on the market for five sixty and finally listing removed at five sixty well I finally heard back from the realtor I was already halfway home and I was supposed to take the washer washing machine and the microwave that's good and I got a whole bunch of details about the fixin flip and the lady that I told you was running the whole thing and how she seemed like she was trying to be just like it is on television they went for the design look they went for was flashing obviously and the realtor said it was kind of a horrible experience because she didn't want to let him do his job as a realtor and she wanted to priced at six hundred thousand and he knew that it wasn't gonna happen the final sale price was five hundred and forty eight thousand and the purchase price was three ninety five and he said that the last time he asked her about how much she had into it it was sixty thousand so we'll go with you know maybe seventy thousand dollars that's not a bad profit and the house was done in October because that's when I initially went on the market so July August September October so for about three and a half four months of renovation well he didn't have to sit on it for a while and pay the mortgage actually I don't know if they had a mortgage I think they may have been cash buyers but not a bad profit for let quite a bit less than a year so as you can see I got a few more things I got a toilet and and a shower shower doors in here I stopped by a bathroom remodel that I'm working on and picked up some doors a whole bunch of stuff so I got a full load just uploaded a video to Instagram about my the airbag system that I have on my half-ton truck to level the load when I'm you know back to the gills like this I also got a little bit more information that you may be curious about on fix and flips this is coming from the realtor the only permit that was pulled was for an egress window well in the basement all the electric all the plumbing all day both bathroom remodels the kitchen remodel removing that wall down the center which it may have been load-bearing I looked at it pretty close and it did have a droop in it but you know this lady she's a really fits the bill for a like a fly-by-night or fix and flip I mean what would be the actions that a their new buyer could take so in three years down the road that huge wall that they took out of the kitchen to open it up to the living room say that thing start sagging I don't know three four inches who do they call they got to pay out of pocket there's no way to tracking this lady down I mean the city's not gonna do anything it's just the the way life goes and I told you that there was two buyers that walked because of the home inspection and the seller did not want to address the issues that were found on the home inspection so I'm wondering what the actual buyer the one that closed on it what their home inspector found and if they have a budget in mind to bring it up to some sort of safety standards or fixing all the crooked installations that went into it yeah the realtor said in his 10 years he's never seen more corners cut on a fixin flip then on this one and he's done several himself just be very careful when you're going to buy a fix and flip there are so many people getting into it that they see it on on TV and they think they can do it and they realize how expensive it is and that they they have to cut corners it's the only way to make as much money as they think they deserve because what they see on TV so as I'm going down the highway here and I'm thinking of a another topic of conversation first of all I am going a little slow I'm only going 55 so if you see cars passing me you know I got a heavy load and I got an exit coming up so about a grand party so this topic is permits and what my experience has been on the resale of homes that have had work done that a permit was not pulled and there were no inspections on the remodel or whatever they had done I've never ever seen a closing held up because of a non-permitted home project now the example I gave was a home inspector found certain things and a home inspector not a government it's not a government agency they there is no home inspector license they are just Joe Blow home inspector in this state usually they're calling out quality control type issues on a remodel like crooked light switches or this or that but you can during those negotiations you usually just reduce the price into a giant block of foam but as far as at the point-of-sale someone fun does research who finds out that the new electrical service that's in their house was not permitted and was not inspected by the the city or county or state never have I seen the state or government get involved and say oh whoa this was brought to our attention by such a such buyer that they have and who have a new electric service in the house that you have listed and it wasn't a permit wasn't pulled so keep that in mind that when you're buying a house don't assume that you've had permits bolt was supposed to go on that well we're taking a long way to dump it's like it just doesn't come up and the realtor that I did called me up to pick up this trash I've done dozens of jobs for him and houses that he's owned and houses it his friends of owned that he was the realtor for and no permits were pulled on the work done do their own house so it's not going to hold up your your closing at least in my neck of the woods it doesn't this is just a tip for you mondays are the worst days to go to the dump because they're not open on Saturdays and Sundays and everybody is unloading so it's kind of chaos right now right now my loaded weight is where is it 7000 tension oh yeah 7000 160 pounds yeah well we'll get weighed once I get rid of all this and see what we had with that one [Music] [Music] yay now for the toilet [Music] [Music] - Matt on camera turn and burn though we were at 1,000 160 pounds and the price went up it was just over 75 bucks but I had fun smashing toilets and shower doors and seeing the heavy equipment one thing to note another tidbit of information try to give some in for useful information in these videos is I go to discount tire to get nails and screws pulled out of my tires and other chunks of random metal at least once a month my front tires were so bad they had so many repairs in them that they said of course they probably could have done it you went to a you paid full paid enough you probably could have gotten him so I go to discount Tires and I get my repairs fixed for free and a lot of that is due to going to the dump that's why I don't take my trailer there I'll usually use the bed of the truck for all my construction debris all right well I can't think of anything else more to say today so leave a question let's have a discussion about what your experience has been in hopes when selling a house that has non-permitted work do you have to have a state inspection before the sale do you have special requirements that like carbon monoxide detectors and smoke alarms and that business that have to be in the house per lock and is inspected before the sale of a house where I'm at there's none of that you can sell a house in any condition you want and someone can buy a house in any any condition they want okay very later

Channel: The Handyman

Views: 797,391

Rating: 4.3340259 out of 5

Keywords: diy fix and flip, how to flip a house, how do make money fix and flip, fix and flip gone wrong, how to buy a house, how to remodel a house, home remodeling, home renovation, home improvement, home maintenance, diy projects, handyman projects, handyman business, youtube carpenter, carpentry, carpenter, bathroom remodeling ideas, bathroom remodel, kitchen remodel

Id: UCfZykJhGf8

Length: 21min 36sec (1296 seconds)

Published: Fri Mar 30 2018