A Juicy House! | Noob vs Pro Real Estate.
FULL TRANSCRIPT
hey we're going to do a throwback back
to 2018 when we used to do a noob verse
Pro Series in real estate and so that's
what we're bringing back as we're
traveling to look for real estate for
our real estate startup house hack let's
go ahead and start with some new versus
Pro tips and we'll start with the
outside an easy way you can spruce up
this front is just paint the garage door
you could do it yourself in a single day
probably it's not going to cost you any
more than like a gallon of paint and you
can see you've got the mismatch of like
fingerprints and discoloration over here
even some screws sticking out somebody
screwed something through the other side
quick little bit of paint the pro knows
we can spruce up this curb appeal
quickly with 50 bucks and a little bit
of Labor the noob is looking around
going oh but it's warped what if I have
to replace the whole garage door it's
going to cost me one to two thousand
dollars forget it paint and you're good
here what do you think about that Jack
good idea he says good idea okay let's
see what we got inside
so inside the first thing you notice is
the way this house is laid out is
there's not a lot of overhead lighting
the only set of overhead lighting you
have here is this sort of lighting most
of the newer real estate buyers are
going to come and say we're going to add
canned lighting everywhere we're going
to add all this electrical and you end
up with an electrical invoice of five
grand just in wiring and circuits and
then they sell you a panel upgrade in my
opinion the easier thing to do here is
brighter paint these color schemes can
be a lot brighter without being white
you don't want to go hospital white but
look at this nearly mustardy orange that
you've got over here nice bull nose
you've got like a mat to semi-gloss over
here I prefer flat it looks a little
less rental grade but a brighter color
like an edge comb gray big pro move to
really brighten the space up obviously
it's Arizona it's a hundred and what
nine or something Jack what's the
temperature 100 something
98 fine it's almost 100. uh it's
supposed to be 109 later today and uh so
we keep the windows closed just to keep
things nice and cool so you come into a
kitchen like this a lot of the noobs and
many of you have been watching my
channel for a while you already know
this a lot of the noobs are coming in
here saying we need a whole new kitchen
rip it all out this is a 2000 early
2000s build this was a 90s style this
90s style really transitioned into the
early 2000s so pretty common to see this
a lot of people are looking to just
going ew I don't want these cabinets
especially when you look inside I hate
to say it but they're like they're kind
of gross on the inside these don't even
have the white boxes they're like a
mustard on the inside I I don't even
want to use this kitchen but the actual
box uh there's no wallpaper in here the
frame this is a wood frame with a thin
veneer in the middle it's actually good
quality stuff you just need to number
the doors and the pros gonna come in
take the hinges off number the doors
spray paint these all white just make
sure you use a good wood primer and then
a good Cabinetry paint don't use your
regular latex paint get a good Cabinetry
paint on this and uh which could end up
being the latex as well but like usually
you get like a urethane on here uh and
uh and uh watch some of my videos you
could type into YouTube meet Kevin uh
it's like I don't know 300 kitchen
remodel or something like that and I'll
show you exactly which products to use
but you could transition this kitchen uh
with a primer coat and maybe a couple
coats of color I'd go for the white so
you'll probably you'll need two white
coats if you go with the gray you might
do one coat but Gray's already starting
to transition out and white is just
Timeless you also have to consider the
top see a noob is going to come in here
and go but Kevin you know I want the
modern uh beige colored cabinets or or
the gray cabinet or whatever it's just
not going to work with this top this top
will work with white I don't think it'll
work really well with a gray or a blue
and now you're doing a new top but then
you get somebody who comes comes in and
they want to start rebuilding your
Island and and now you're spending 10
grand where you should have just spent
you know less than a thousand I would
call it a thousand bucks to repaint the
cabinets then add some nice Hardware add
your personalization like that don't
overspend hey by the way if you want to
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Time to check that out link down below
the last time we sold out so quickly we
had to shut it down for like three
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out the link down below right next to
the link for the courses over here same
thing with that overhead lighting but
again uh paint Scheme change will help
possibly even a floor because what we
have here is an older ceramic tile with
the darker grout lines it's giving you a
little bit more of that dated look you
can really transform this property with
just paint and flooring it's probably
the extent that I would go here so
looking at the same thing with all the
cabinets by the way bathrooms you come
in you've got some stains on the carpet
I'm actually a big fan of buying places
with stains in the carpet and kind of
some musty carpet smell you know the
noob comes in here and does the usual oh
the nasty carpet the kitchen's nasty and
there's you know their fingerprints on
the walls and the garage doors dirty and
you know you come over to the the
bathroom for example and you get the
typical sort of mildew around the edges
of the shower and so what happens is
people see this crusty stuff right they
see the crust around the shower door
they see the mildew along the inside of
the fiberglass frame and I look at it
you got so much mildew it's peeling off
right here it's not a big deal though
this is all easily cleanable uh either
cleanable you could glaze it
quite frankly somebody with bleach and a
good scrubber can really clean up the
shower a lot you've got hard water
stains on here the noobs coming in here
doing a new kitchen new bathrooms and
and they're spending 50 Grand the pros
coming in here going hey I got a 10
grand budget for uh paint and and maybe
some miscellaneous new light fixtures
and cleaning up the bathroom maybe call
it another eight for flooring and
baseboards and you're putting 18 in
where the noob's putting in uh something
like uh uh you know 50. uh and and
you're up you know you've got the same
potential value play so uh the other
thing to consider as well is a lot of uh
Sellers and homeowners they don't
realize this but they start putting in
these over improvements into properties
I'm going to show you a fantastic over
Improvement now that really you have to
be a noob to install in your house uh
but for some people it makes sense I'll
tell you whom it makes sense for if
you're making more than 250 000 a year
and your income taxes are so high and
you want to offset some of your high
electricity bill and you've got a three
four hundred dollar electricity bill or
more maybe this makes sense maybe what
I'm about to show you make sense but
beyond what I just said it doesn't make
sense for you to make this Improvement
certainly not for most people so what do
we have well of course it is a whole
Tesla solar system now I understand I'm
not showing you the solar panels those
are on the roof and it's really hot even
in here but this is delicious each of
these has a value of about 15 grand
maybe with about a 30 tax credit that's
about thirty thousand dollars that I'm
looking at here this is a Square D
backup load Center uh this was an extra
so you're at you know 15 15. this was
probably a couple thousand bucks Square
D is an expensive brand you've got the
arc fault breakers you got three Arc
faults over here this is a 100 amp sub
panel you're going to probably have an
upgraded main as well hey Jack
Jack
hey can you open the garage for me
and we'll see if they also updated the
electrical panel out here usually they
do that top button there right above
your hand there yeah push it cool thanks
man so uh usually you know you're
putting in another five to ten Grand of
electrical work it's not just the cost
of these batteries but then it's also
the cost of the panels some homeowner
here spent fifty sixty thousand dollars
probably on the solar panel system that
they threw in I mean look at this look
at all these disconnects I don't even
know why I have these two electrical
meters maybe that's something they do
out here in Arizona I've got like three
electrical meters my goodness uh that's
almost like one per battery and uh and
then your main house here I don't know
I'll figure I'll get the answer to that
when I talk to the agents here but you
know this panel is actually original
which is fine uh so you've got your
original panel here and it looks like
what they did is they basically
abandoned everything and took your 200
amp panel sized it down to 100 amp a
main that is now in the garage so the
entire house is battery backed up with a
massive solar panel system up there uh
I mean this is amazing uh this is really
good so I like the problem for the
seller and this is the new part the
seller may have spent 50 Grand the comps
in the neighborhood for this house are
four hundred eighty thousand dollars
this house is listed for 5.25 so what
they're probably doing is they're going
okay 480 plus my solar panel system
they're not going to get it maybe
they'll get an extra five grand so
whoever buys this house is probably
getting a 90 discount on that solar
panel system assuming it's fully paid
for that is a fantastic deal for a home
buyer so if I were ever a home buyer the
type of home that I would want to buy is
one that has all these crazy upgrades
that they're not going to get comp value
for and then has the uh you know old
kitchen cabinets the stained carpet you
know the the golds or brass or whatever
Hardware you know these are simple
things to change the pro comes in here
and says I'm not paying for the panels
even though that's the most important
stuff and I want a discount because the
condition's bad you know the carpet's
not stretched anymore the pain sold you
got stains over here you know these are
all the things that send the home buyers
away meanwhile the investor is like this
is the easy stuff so uh those are those
are some new Boost Pro hacks here let's
look outside now you do have a pool here
so this is Market dependent and the pro
knows this is Market dependent if you're
in a market where you're not getting
extra rent for a pool you don't want a
pool uh but if you're in a market where
you can hopefully cover not just the
cost of servicing the pool which this
one needs a little love but also uh
maybe make some extra profit on it in a
market especially like Arizona where
jacket it's got to be over 100 now what
what's our temperature update Mr Jack
no temperature darn it it's still 98
okay feels warmer but anyway because we
just came from 55 degrees in Cali but uh
we flew in for the day so um look this
is uh this is great because it's going
to keep a tenant here longer assuming
it's maintained properly and again this
is where a seller is probably not going
to get the full value for what it would
have cost up with this pool in if this
was let's say a 30 grand pool to put in
with the fountains in that they have
maybe we'd give them 10 to 15 on a comp
basis so easy improvements that a pro is
going to make here and uh really a lot
of mistakes that a noob could make uh
I'm not the biggest fan of what they did
here with the spray foam insulation
Under The French Door I'd like to clean
that up with some kind of molding or you
know think think of something for that
but it's stuff like that that really
bothers home buyers they're like oh it's
just crusty around the edges or whatever
but so inexpensive for for a pro to
handle we've got the newer can lights
out here this is actually nice to
smoother stucco here you do have some
water stains here so you want to check
the roof there although you know what
and that's the other thing is like when
it rains in Arizona it rains uh and then
their AC is a little bit on the older
side here I'll close this door for a
second out of respect for them see all
even just the Crusty paint and all that
we'll sneak over to the air conditioner
here and take a quick glance at what we
got here we also still have the original
Windows of the property some people have
already upgraded from these but they're
dual pain they'll be okay so you could
tell this sucker is probably OG so uh
we're getting to the uh probably point
where uh one of these guys might die on
you in a summer coming up sometimes you
could find a manufacturer date on them
uh sometimes it's a little harder to
find I can't seem to find one now but
it's not the biggest deal it's uh it's
at that point where I would probably be
having it serviced regularly honestly
you probably have to do that anyway
wherever you in Arizona also as a pro
before I would rent this property out I
would make sure that stuff like this
stops happening so you've got rust
appearing at the bottom edge of the
property here I want to know what's
causing that because it's very strange
that that almost feels like it's your
master bathroom and uh that's not good
because I I can't imagine it's these
pumps that are flooding out causing this
but then again they have that pump on
some kind of weird Marble Slab
which implies that maybe they've had to
mess with it at some point in the past
so there's something going on there that
I don't like I'd like to investigate
that this I would get rid of I do not
want to incentivize my tenants to do
this stuff I get it it's cool as a
homeowner I'm a big fan of growing
tomatoes and stuff like that too but I
don't want my tenants doing it they
don't take care of it rats come it's a
disaster so let's quickly look at the
other side see there's a clean out right
there there's your clean out probably
for that bathroom and the stains are
just past that clean out so let's go
investigate as a as a pro should do
what's going on in that bathroom
so as expected here's our bathroom
and it appeared that the clean out would
have been somewhere here so maybe it's
even the other bathroom one over but
let's see if we have any secrets here
um I mean I see some staining but
nothing that would imply so much uh uh
damage over there at least not in this
cabinet if I hop over to this no just
sort of your normal kind of Dripping
under the uh the sink Basin so nothing
abnormal here but why you're getting all
that rusting on the foundation it's
almost as if either water's sitting out
here uh or something's happening but uh
no bathroom here yeah your next bathroom
isn't until here so that's something I
would talk to uh
I'm not going to put much faith in the
homeowner on because they probably have
no idea it probably has to do with pool
equipment so what I would do is I would
talk to the person who's been
maintaining this pool and then get a
full history on that pool equipment it's
probably the pool equipment and
occurring from the outside which makes
sense because quite frankly water
leaking from the inside and rusting all
the way through would be a severe water
problem and that is not indicative of
that so that's coming from the outside
uh so they just had problems with the
pool equipment doesn't surprise me with
how old the AC is but uh you know I mean
the thing this place has is those solar
panels and that could be kind of a nice
free upgrade so Jack what'd you think
about the house
uh I don't really like to poop you don't
like the pool is it too small for you
yeah of course it is if it were bigger
it'd be okay and um
a little nicer like some new paint and
flooring
yeah anything else
no thanks man thanks for joining a house
hack video so by the way if you want to
join us to Shadow us as we explore real
estate click the link down below you can
now Shadow us again right next to the
link for the courses where I give you
all my perspective on building your
wealth thanks so much and we'll see you
in the next video
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