$2 Million Dollar Home Flip Disaster | Before and After.

hey so remember this beach home that

i've been remodeling since like

september of 2020

yeah that's because i got stuck dealing

with this city but hey at least we got

to film millennial money on cnbc make it

at this house that was pretty cool

especially since lauren and i got to

film that together but anyway we bought

this house in september of 2020. it was

supposed to be a rental property maybe

even an airbnb and we bought it totally

stripped for

1.335 million dollars completely empty

that's because the prior people spent

about two years trying to remodel it and

get permits and they got burned out not

a surprise because i had to wait myself

about 22 months to get the permits just

to bring this thing to market and i

didn't even do the crazy job that they

wanted to do i just wanted to put in two

headers and replace the doors and

windows and the city drug me along for

20 months to do that which is absolutely

insane the other people wanted to add a

second story and expand the property no

wonder it took them a lot longer anyway

here are some of the things and costs

that we had to go through which one of

the cool things about this is you're

gonna see a little bit of where we like

to spend money and where we like to save

money which is a lot of what we talk

about in the real estate investing

course and do-it-yourself property

management course which has an expiring

coupon code for tonight and then the

prices take up again that way you get

our benefits of our lowe's partnership

and all of the tips and tricks that we

have for real estate renovating let's go

through the before and after so first

we spent a total of ten thousand dollars

doing drywall the first time around and

unfortunately because the city well got

involved after we kind of started doing

some drywall it kind of made us take

some parts of it back down we had to

spend another seven thousand dollars

then we did some exterior paint which

cost us about six thousand dollars for

labor and material we did flooring

downstairs which ended up costing us

about five thousand five hundred dollars

and the fireplace uh with those a little

bit of labor and material probably cost

us about seven hundred bucks we ended up

throwing in new appliances counter tops

and cabinets that was all just under 14

000 and we added a laundry room here

which used to be an exterior utility

closet that was i think really great

added value cost us about three thousand

dollars we did the flooring upstairs

which cost us about two thousand dollars

now we could have continued doing the

same flooring that we had downstairs

that waterproof vinyl flooring which is

pretty amazing but we decided to go with

carpet

mostly because we really enjoy the

feeling of carpet upstairs and let's be

real it also saves a little bit of money

now we also replaced all the hardware as

we generally do cost is about 800 bucks

for all the new hinges and hardware on

the doors we added a wall in the master

since the master was one big room we

wanted to turn the house back into what

it originally was a three bedroom two

bath so that cost us about a thousand

bucks then the first bathroom we

completely renovated for about three 000

bucks and given that it was all the way

down to the studs like this i can't wait

to show you what it costs we spent about

4 500 bucks in the second bathroom and

of course got ourselves some boob lights

you know those are about 30 bucks for a

packet too anyway the back wall and the

master was a little expensive because

they kind of made us redo some of the

stuff even though we had a licensed

engineer help us

the first time around they wanted us to

go above and beyond and even though we

had when we had our engineer the first

time they wanted to go even further and

of course we obliged because you have a

choice you can wait 20 months for a

permit and do it their way or you can

wait five years and probably still do it

their way after fighting anyway we got

these awesome custom exterior doors that

cost about seven thousand dollars and

those are some of the big expenses that

we spent on the property now i'm pretty

excited to show you the after which

remember when you see this after i'm a

big fan of quality and safety and making

sure the dollar goes as far as possible

so remember we bought this for 13.35

we've listed the property for 1.9

million dollars which not considering

renovations is about a difference of 565

000

now obviously we had to hold the

property for about 20 months plus our

time frame and closing so they're going

to be some expenses for that but let's

go ahead and take a look at the after

so first here we go this is the

downstairs we really believe the

flooring we added easily 3xed our money

we think we did a really great job

putting this place together and after

all a buyer now doesn't have to worry

about it they don't have to go through

20 months of headache to deal with all

this stuff

the kitchen probably adds about 30 000

of value and note we spent about half of

that

now the laundry room we think adds at

least fifteen thousand dollars worth of

value and it only costs us about three

to do it which is awesome because the

plumbing hookups were already there on

the other side

uh flooring probably a 3x on the carpet

painting carpet tends to get you a big

3x bathroom costs definitely having a

completed bathroom for three thousand

dollars probably adds about ten thousand

dollars of value not even considering

the fact that we also next door added a

whole new room now adding the wall

wasn't the best return on investment

because adding the wall along with

opening up the kitchen a little bit you

know these things probably cost us about

40 dollars in paperwork plus the time so

really adding the wall and all the home

permits maybe added a hundred thousand

dollars of value as well as you know

making sure we had the permits but boy

oh boy i'm not sure it was worth

paperwork to go through all that as it

usually isn't

then of course ceiling fans we think we

add some great value with these ceiling

fans cost us about 150 bucks a piece

probably double on that the master

bathroom looks absolutely amazing and to

die for it cost us about five thousand

dollars we think we probably got a 3x on

the value of how good this bathroom

looks and quite frankly if we outsource

this we'd probably have to pay somewhere

around 25 to 30 000. but a lot of the

costs you're seeing here are our ability

to do these in-house or to use the

tricks that we do to make sure we're

buying right and that's really important

and that's why in our courses we've got

our partnership with lowe's to make sure

we minimize our costs well and of course

we've got three 15 dollar boob lights

creating about 65 dollars of value per

light because come on who doesn't like

boobs that create more value than what

you spend on them now what's amazing

about the master bedroom is that it

connects to the outside balcony it's a

perfect size and it's got its own

hallway here with its own bathroom and a

walk-in closet now in landscaping we

added about seven thousand dollars and

we think we added about twenty thousand

dollars of value to the property and

there you have it there's our full

restoration of this home that used to be

completely into studs and turned it into

a beautiful home now now to wrap it all

up we spent about a hundred and seven

thousand four hundred fifty 450 on the

project

plus we had holding costs waiting for

those darn permits

of somewhere around 80 000

being generous here with the numbers

meaning we're probably sitting around

somewhere

hopefully of a gross profit of around

370 000

we're going to have closing costs and

since i'm representing myself as an

agent we expect those to be under sixty

thousand dollars which means this

two-year project should be netting just

over three hundred thousand dollars

which is very fortunate because if the

market were going down and we had to

wait 20 months for stupid permits

we'd be screwed now folks if you want to

prevent getting screwed in real estate

and you want to learn how to prevent all

of the mistakes that i've made in the

past learn exactly what to do what not

to do what to spend money on and what to

spend money on folks join the programs

on building your wealth link down below

consider bundling together the zero to

millionaire program and if you want to

take it to the next level the

do-it-yourself property management and

rental renovations program we've got a

coupon code expiring today check it out

link down below prices go up every time

the codes expire and they haven't come

down since we've started this course

four years ago