Walking some of Our HouseHack Jobs

Hey everyone, today is a great day to

show you what we do at House Hack. Well,

at least from the renovation and

building side. Artificial intelligence

is another chapter that we kind of don't

have to leave the office for, which is

cool. But let's for today leave the

office and go check out what's going on.

One day we'll get that clean. But don't

worry about the the dust. Black's just a

bad color in SoCal. Right now, we're

rolling up in a neighborhood we love

buying real estate in, and it's mostly

home owners, which we love buying in

neighborhoods where you have a lot of

homeowners. What's awesome about this

neighborhood is because we did such a

great job buying a deal cash asis. The

sellers and the sellers side of the

transaction were so enthusiastic with

the work that we did, how fast we were

to close, how easy it was for us to work

with them, how simple we made the whole

process for them that we ended up

getting connected with another property

offmarket just a few doors down that we

also picked up. So now we got two

properties uh on the same uh actually

same side of the street too, which is

great in a great neighborhood. Uh here's

one of them right here. This one's still

in escrow, though, so we got to close

that. We'll be fixing that up uh once it

closes. Although it doesn't even need

that much work. We got a great deal off

market. Knock on wood. Uh and now we're

going to go over to the fixer upper,

which this one this one needed a little

bit of work. Let's just say we bought it

and it didn't even have a shower in it.

So, it's the kind of property you can't

finance. It's a little stinky and gross.

People always say like, "Oh, you know,

are you just buying properties that

other people could could otherwise live

in?" We're like, "No, we're buying

properties that have often been empty

for years." Uh, and they really need

somebody to come in and transform them

and make them livable again. Uh, and

then when we can, we'll even add units

to them. So, we're adding housing to the

local housing supply. So, here we go.

Looks like the painters are here on this

one. We'll go ahead and pull up and, uh,

we'll see what we got on this one. This

one's also getting a new driveway. I

usually don't love it when I have to

pour concrete, but this one was worth it

because it was such a great deal. See,

original driveway. Lot of uh termite

damage over here on the lumber. Getting

rid of that. As you can see, we're

throwing in some new wood over here.

Looks fantastic already. We get a new

garage door. All right, we got the sch

snazzy music.

>> Hello

[Music]

How's it going?

>> Oh, Kevin, how you doing, man?

>> Good. Good to see you. Good.

>> Do you need anything? You got the

cabinet paint, everything?

>> I got everything. Yeah. Yeah. Yeah.

>> Okay. Perfect. You're doing the wood?

>> Yeah.

>> You're doing a great job. Nice to meet

you. I'm Kevin. Pleasure to meet you.

>> Thanks. Nice to meet you. Very good job.

Okay. So, uh here's just an example of

an original kitchen. Usually, we'll do

whatever we can at every single property

to make a unique decision for a

property. Uh, in this case, we decided

the layout's good, the kitchen cabinets,

while there's a little bit of love they

need, there's nothing we can't fix here

and make great. The inside is actually

been pretty well protected by this felt.

So, we'll be removing this, having a

nice liner in here. These are great

functional cabinets, and really, we can

save a lot of money by doing this. So,

there's a balance here where we can take

an original kitchen and we can retop it

or glaze the top and we'll paint uh the

cabinets with cabinet paint, cabinet

primer, oil-based cabinet primer of

course, uh and really bring a kitchen

back to life for a fraction of the cost

of what it would cost to tear all of

this out, fix all of the drywall, reby

cabinetry. Usually, we can get away with

painting cabinets for about 25% of the

cost, sometimes even less depending on

if we're doing new countertops or not.

And that all comes down to the condition

of the countertops. In this case, the

condition of the countertops is pretty

good. So, what we're going to do is

we're going to compare the price to

glaze these countertops to new stone. My

expectation is that new stone is going

to run us somewhere around 5,000 bucks.

It's going to be uh probably a slab and

a half here plus the install plus the

sink, the sink install, the backsplash,

a lot of components there. Uh and then

unfortunately, we'll also run into

damage uh like potentially at the side

of the cabinet in the event the

backsplash isn't cut appropriately. So,

so a lot of little considerations that

end up creating nuances, nuances,

especially if we damage the cabinets. Uh

so here if we compare that to the price

of potentially glazing these cabinets,

we might be able to do that for under

$800. Uh in which case or the the

countertops for under $800, in which

case we're saving a substantial amount

of money. So this is where we'll go

through and make sure everything that

we're doing uh on, you know, within

these properties is upgraded to new

standards. So we're going to get decor

switches in here. We're going to get rid

of the old ivory. We're not just putting

a plate over to mask the color. We'll go

with new flooring, a luxury vinyl plank,

something waterproof, new baseboards,

usually a 4-in baseboard. Uh we throw

ceiling fans in in every room before uh

uh we end up uh obviously doing your

painting, so we're not double painting

and double drywall working. Uh in this

case, we'll get a new vanity in here uh

and uh clean up the bathroom. So, this

is just a quick example. I always like

to get fart fans in as well. So, I'll

upgrade the fart fans. I run the

electricians through before we drywall

and paint, of course. So, uh, that to me

is very important. I love taking these

properties that need some love and

coming in and contributing to the

neighborhood outside, new paint, inside

new paint, new systems, and now

providing it to a tenant who can rent it

and not complain. Because no tenant

wants to move into a property and end up

having a crappy property that they

constantly have to call a bad landlord

with. That's one of the things we love

about what we do at House Hack is we try

to create a great quality property. So,

we'll have all of this landscaping uh

redone. We usually to save on cost and

water uh depending on if we're in a

drought or where the property is

located, we'll usually do a mix of grass

and a mix of mulch and a mix of rock. So

that way it's not all one thing, not all

mulch, not all rock, but we might do uh

rocks over in this area and then maybe

40% mulch and then 40% grass. Uh and

then of course we'll paint these fences

as well after doing wood repairs to

them. Roof in this case is in great

condition. Uh outside will be painted

and uh of course we're running licensed

plumbers, licensed electricians through

licensed HVAC. It's great. So this is

just one example. Let's go to the next

one. Last thing we'll do here is the

concrete. Mostly because when people are

painting or drywalling here, they always

end up getting my new concrete stained

or messed up. So, there's a there's

definitely an order of operations to

these properties. But, really, they I

almost feel like I can do them in my

sleep. I've just done so many of them

now. And the most enjoyable part about

these renovations is once they're done,

they're done for like 15 years because

we pick neutral styles. Well, Lauren

does. Our our designer, we like to say

she's the prop chief property manager,

chief designer. She makes the design

choices. Uh we're actually going to go

to a property where we're looking at

adding a bathroom. And what's so

exciting about uh about all of these

remodels is again once they're remodeled

and we do it right the first time, we

don't have to deal with calls.

The tenants almost manage themselves in

a single family. It's a pretty great

business and a great way to diversify

investments. Always keep hand sanitizer

in your car. So now what we're going to

do is we're going to head on over to a

multifamily. This was actually a 1920s

property that was three units when it

was first acquired. Was uh then

converted to four units legally with

permits. Great, great work. Uh now we

are building two more units and then

there will be two more after that. So,

the permit time frames and processes

with this particular city, they could be

a little better. They could be a little

faster and and I'd love it if they can

consolidate some of their permit work,

but sometimes you take what you can get.

And the fact that, knock on wood, it

looks like we're going to be golden for

four extra units on a fourunit apartment

building literally doubles our unit

count near a downtown of a beautiful

city. That's coastline, California real

estate. So, the rents we could get here

are going to be phenomenal. And the the

ROI on the cost to build is excellent.

So, couldn't be more excited to show

you. And let's go take a look at the two

units that are almost complete.

>> Welcome. This is a wonderful ADU that

obviously is in the building progress.

Uh ADUs, accessory dwelling units, uh

all permitted. And uh what we'll find

here is it's all just been painted,

which means we are now prepared for our

countertops to go in. Got the dual

painted windows. We got the beautiful

can lights. So you can see it's all a

beautiful smooth finished texture, which

is gorgeous. Very modern. Uh honestly,

amazing. like it's nicer than my house.

So, uh we've got our uh dishwasher and

sink stack over here. Countertop plugs.

You can see mini split inside the unit.

Uh this is going to be more of your uh

sort of dining or living space, if you

will. They're smaller units, but these

are just converted garages. So, if you

think about it, you've got what used to

be a 400T garage and you turn that into

now a 400T unit and then a second 400T

unit on top and then potentially two in

front of it, which is fantastic. That's

how you get an extra eight units. Uh so,

here you've got your classic bedroom.

Very nice, simple. Uh and uh this will

be where the stackable laundry is. As

you can see here, we've got our uh vent

exhaust. We've got our um water lines

here. Our gas line over here. Light

switch for here. Corner. Beautiful tiled

subway tile. Timeless bathtub or not

bathtub, corner shower here. Something

to remember is a lot of people really

like to pick trends that are in right

now. But the downside of picking a trend

that's in right now is what happens if

in 3 years it's not in anymore. Think

for example Satio tile very in for a

particular period of time or look at

slate flooring which was super in like

the 2003 era. Another example might be

um gray kitchen cabinets. We renovated

some properties with gray kitchen

cabinets as well but it always rubber

bands back to white. So all of our new

projects will all continue to be white.

Uh but uh beautiful beautiful even

hexagonal

shower pan here. We'll get a nice uh

glass surround in the fart fan. the

vanity, the toilet will come. And uh

this is just one example. We'll go show

you the unit upstairs, too. And here you

can see is exactly the same thing

upstairs, which is awesome because it

makes it easy to build. It stacks your

gas line. It stacks your drains, drain

lines, stacks your drain lines over

here, uh stacks your venting, uh stacks

your electrical. I mean, the electrical,

beautiful work here by the licensed

electricians. The mini split uh unit

over here as well. Fantastic. Uh, so

this is just an example of two ADUs that

we're building. And right now we're in

progress on eight more units at an

8-unit apartment building, which is

exciting. Few single ADUs on single

family homes where we're adding an ADU

in a larger backyard. For example, that

last property that we were in, we

wouldn't add an ADU to the back. We

don't really want to turn a single

family into a duplex, but some of our

single families are so large that we can

create a separate entrance for an ADU

and really make it feel like you have

two single family homes that are just

neighbors. Hey, here's another one that

was a total fixer mess. Uh, we honestly

think that a hoarder lived here and they

had a lot of cats uh and then I believe

they passed away in a hospital or

wherever. But um the property was vacant

for quite a while and so the smell

really sunk in and this is where we have

to go through and treat the concrete uh

with you know whatever products that we

can usually natural solutions or what

you want to use for urines. Uh and uh

then we came through and we've now

primed it multiple times with uh bin

advanced. It's really expensive but been

advanced for something like this really

good. Uh, and we've now eliminated any

odors. Uh, and, uh, we've already got

the walls painted on this. We've got the

ceiling painted on this. Uh, we've got,

uh, now electrical to do. We've got dual

paint sliders and windows in here. We,

uh, like to have the painters, when the

painters are in here priming things like

kitchen cabinets or doors, we like to

have the painters also do the 4-in

baseboard. So, we have that delivered

first. So that way while the painters

have Swiss coffee uh semig gloss in the

spray gun, the airless sprayer, they can

do this at the same time to lower labor

costs. Especially since a lot of our

painters, we pay by the day. Cabinets,

sprayed cabinets look absolutely

gorgeous. This is just a good example of

what after sprayed cabinets can look

like. Quartz countertops still to come.

Electrical work uh to be done. Jack and

I delivered these fans yesterday. Here's

a clip of Jack helping me deliver them

so we can get them ready for the

electricians. Can you uh tell me what

you think uh about the flooring we did

in here?

>> Is this the cap piece?

>> Yeah,

>> this sounds better.

>> Hey, here's another example of one with

our paint scheme uh done. You can see

the garage uh nicely painted here. We've

got uh the uh uh the eaves and and the

fascia board here uh nicely painted,

which looks great. So, uh fantastic uh

work here by the painters. We're going

to hop on inside on this one. Also got a

nice uh new roof on this one. Got our

toilets showed up, which is great. The

uh toilets go in after the flooring,

though, and then we put new door

hardware on. So, this door hardware is

still a little wrecked some of the old

stuff, but that's okay. These are all

jobs in progress. Quick reminder, if any

of what we do resonates with you and you

want to diversify to House Hack,

remember that you can go to

househack.com

and you can get 5% as a yield by

investing in our latest round. You get

that 5% paid on a monthly basis and you

get that distributed to you the way you

want directly into your bank account.

So, it's great yield paid from the

income of the business and you get a

100% of the upside in the company.

Technically, they're convertible bonds,

which means you get a yield through

conversion. And then the only way the

bonds convert to stock is if the value

of the stock goes up, then you can get

100% of the upside. Now remember, we

buy, we fix, we manage, we build, but

we're also developing our secret sauce,

which we already use internally, but now

we want to license to other investors or

real estate agents or really just

clients who want to get a good deal on a

home. And that's going to be our

WedgeFinder artificial intelligence

software to help prioritize deals and

find out which deals are the best to

buy. So, we'll be licensing that

probably with a beta starting in the

fourth quarter and then hopefully a

public release in the first quarter.

We're super excited about that. And if

you're interested in investing, consider

going to househack.com. Remember, every

investment has risk and it's really

important that you read the offering

circular or the private placement

memorandum. If you have any questions,

you can always email us at

ir@houseack.com.

Keep in mind also, I am the CEO, so I

can be a little biased at the upside.

I'm very bullish myself, but that should

not sway your personal investment

decisions. So, let's go take a look at

this one. Uh, love dropping off

electrical items for the electricians.

Like I said, the last property, I like

to really get ahead of bringing supplies

to these vendors, so I'm not paying them

to go stand in line somewhere. Uh, and

so in this case, we could see that, uh,

you know, they've already come in and

thrown in the decor outlets. The decor

switches are in. Obviously, windows need

to be cleaned in this place, but that'll

be done towards our clean up and

finishes. But, uh, here is an example.

We've got brand new cabinets. Uh, not

only brand new cabinets and our GFIs on

the countertop, we got the 20 amp GFIs

over here. 20 A plugs over here. All

tamper resistant, weather resistant as

well, which is great for the kitchen

area. But, uh, these cabinets are

fantastic. We got new can lights in over

here. Uh, 6-in cans, which is great.

We'll have our sink and dishwasher over

here. Uh, this originally had one of

those double wall ovens uh and cooktop

combos. I hate those because to me

that's multiple devices that I have to

now get. I have to get a custom fit oven

for this. Then I have to get which a

custom fit oven is usually going to run

around $1,600. Then I'm going to have to

get a cook top which is going to run me

at least 1,000 bucks. That's not even

installed. Uh and and and then of course

the microwave, which I would do either

way. The beautiful thing about a range

is I can get a really good quality range

for $5.99 and have an oven and range

like cooktop in one. So all of a sudden

just in materials cost as opposed to

paying you know 16 plus,000 which is

$2,600. I'm saving $2,000 by combining

the appliances into a range instead of a

cooktop and separate oven. And so

practically to a tenant, this makes zero

difference. and to investors it's a

$2,000 difference. So, it's remarkable.

This is also a fantastic property where

uh in the future we are uh planning

hopefully uh we'll see to um uh to turn

this into a property that has a

beautiful higher fence uh and maybe

we'll even add an accessory dwelling

unit depending on what kind of uh

authorizations we're able to get from

the city. We're very very excited uh

about how we're contributing more

housing uh to the neighborhoods and uh

couldn't be more excited with this. This

is a this is a great project. We've got

a nice twostory here. Uh the it is a

split level so the master is only up

half of the way. All of this will be

refloored. Look gorgeous. Uh so this is

an example of the master over here. And

uh it's a great property. So very

excited. And this will be a nice little

accent pop wall which will look really

great when the flooring is in. Wish we

had an example today to show the

flooring, but we don't. Well, soon

enough we will. So, these three fixers

that we just saw, we think will probably

generate I mean certainly hundreds of

thousands of dollars in equity uh for

the company, which is bonus value to the

company. It doesn't even show up on the

balance sheet because you're not paying

taxes on it until the time comes you

sell it. So, you know, we look at them

as like great, these are great little

piggy banks that we can refinance in the

future, which is really exciting because

our vision is the more we can build

these little piggy banks, the more if in

the future we're in some kind of

recessionary environment or there's a,

you know, a reason for rates to come

down because inflation is lower or

whatever the rationale is. Who knows? We

have these cash properties that have no

debt on them and we can go to a banker

and say, "Hey, we've got, you know, call

it $100 million of of real estate

whenever that time comes. Let's say

we've got $100 million of real estate

paid off. We want to finance this up and

go buy more real estate." We could

really blow up the size of the portfolio

uh to probably a third of a billion

dollars, which is which is insane

because that 100 would represent our

down. I mean, if that was 20% down, uh,

you know, we'd blow it up to half a

billion dollar portfolio of real estate,

which is remarkable. Uh, and there's

just so much involved in every single

property getting the renovations done

that it is a lot of work. A lot of

people look at this and say, "Man, I'd

rather just invest in stocks." And I get

that. Uh, I always say, "Hey, once your

net worth is over a million bucks, just

invest in stocks."

And that's actually why we think what

we're doing is so exciting because we

give an we give people an opportunity to

reinvest in uh you know their their

profits or their income or their gains

on stocks or whatever into a diversified

pool of real estate that somebody else

is handling the management on. That is

us like we handle that. Somebody else

handles the acquisitions on, we handle

that. Somebody else handles the

renovations on, we handle that. Somebody

else deals with the contractors on, we

handle that. somebody else deals with

the lenders on when that time comes. We

handle that. Again, we don't have any

bank debt at the moment, but when that

time comes, that's going to be a lot of

work. You know, somebody's got to deal

with the lenders, the appraisers, deal

with the refinancing, deal with the

cycles of loans because it's not all

going to happen at once. It's it's buy

refi, buy a refi, buy a refi when we get

to that phase of the market cycle. Uh

and and that's just going to be that

many more renovations. Fortunately, when

that time comes, all of these

renovations that we're doing right now,

we shouldn't really have to ever do

anything except maybe the occasional

touch-up paint. That's the beautiful

thing is if a tenant leaves after 2 or 3

years, average time a tenant stays in a

property is probably 5 to seven years

realistically, we do some touch-up paint

or we repaint with the same color and

floors still in, the kitchens, the

bathrooms are still in, the tiles are

still in, the fans are still good, the

light fixtures are still good. you know,

maybe replace some light bulbs, make

sure the smoke detectors are good, and

rerent it. So, it becomes really easy

and formulaic. So, for us, it's actually

not that stressful to handle. It's

pretty simple. We go in, we're like,

"All right, we already know the formula

to apply to this, so just do it. Call

the right person to do it and it's

done." Uh, and uh yeah, that's uh that's

an example of uh just some of the real

estate that's in progress. Mind you, we

just closed on these properties. We're

beginning of October here. We just

started buying in September again. So,

we're October 3rd right now. We just

started buying again in September

because we said we would buy in Q3 and

Q4 again of 2025. We let August go by.

Kevin was also on vacation in Japan

right before school started. Not that

that had any bearing on our timing

because we wanted to wait for school to

start. That's usually when buying

activity slows down and it creates an

opportunity to be a buyer when other

buyers have dropped out. So, I don't

like buying before school starts.

Anyway, then the kids went back to

school. I observed the market for a

couple weeks and decided, you know what?

It's go time.

Seven properties in escrow or closed in

the span of two weeks. And that's not

bad. Some of that is because of the

artificial intelligence that we can use

that can help us find deals. Uh some of

it is, wow, we got a deal because we

were really good at another deal. Uh

like we showed you on the first

property. So, it's very exciting. But

this is really the the construction, the

nitty-gritty side. And to us, while it's

not that sexy, like, oh, that's the AI

SAS or whatever, this is the core of the

business that's really hard to bankrupt

because it's just an it's a hard living

in terms of all that needs to be done,

but it's an honest living. It's

straightforward. Uh we think it provides

massive shareholder value and value to

the community by providing more housing,

but really what we do is uh we do what

other people don't want to do and as a

result, we get paid for it, which is

great. And now on top of that, if we can

take some of the equity that we're

building and build out real estate

software as a service as we're doing

with our reinvest app,

that's very exciting because to us, our

company safety net is this amazing

portfolio of high-quality real estate

that we have renovated. That's our

safety net. And the upside is infinite

thanks to using and replicating our

experience in in real estate, what we

see as a good deal in real estate and

then licensing that to people not just

across the United States but eventually

across the entire world. So our total

addressable market for for deals is

insane.

>> Why not advertise these things that you

told us here? I feel like nobody else

knows about this.

>> We'll we'll try a little advertising and

see how it goes.

>> Congratulations, man. You have done so

much. People love you. People look up to

you. Kevin Praath there, financial

analyst and YouTuber, Meet Kevin. Always

great to get your take.