tenants & bad landlord destroyed this house

ah

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right jack

hey everyone me kevin here with

jack we go carted over here that's why

jack's got his helmet on and uh we're

gonna do a quick walkthrough of this

1964

1500 ish square foot house jack what's

your favorite part so far about this

house

the old mail slot in the door this is

pretty cool huh

and the oranges so one of the first

things you're going to see when you're

looking at a property like this is well

first of all there's no flooring you

have kind of a lot of flooring missing

you've got some cracks in the floor uh

essentially in the concrete slab and

a lot of folks will look at this and say

oh my gosh like there's no way we're

going to be able to get financing on a

house like this because all of the

carpet has been removed but one of the

beautiful things that you could do if

you wanted to finance a house like this

is you could just write into your

contract buyer to install carpet prior

to

the appraisal at no liability to the

seller

and now a buyer who's putting three and

a half percent down five percent down 10

down or whatever

would potentially be able to buy a

property like this with the acoustic

ceiling you've got the old 1960s kind of

frosted glass over here

1960s electrical 1960s most things here

of course you're gonna run into some

issues when you have this

uh because this is obviously clearly a

sign of a roof leak so uh this is where

things would get a little more expansive

where you probably have to fix this

prior to closing escrow so financing on

something like this is going to be a

little bit more challenging because

you're going to have to be creative with

how you deal with things like this

uh older kind of kitchen layout here

you've got the smaller kitchen layout

here i usually like these older cabinets

these have been painted before the sort

of navajo white color here i usually

like going a little brighter uh what do

you got there jack

the house comes with orange trees

yeah which also means the house comes

with rats

but uh fruit trees i don't love and

rentals but anyway one of the things

that a lot of folks were going to be

really motivated about in a property

like this and you'll see it better when

we zoom out over here is your walk out

uh is this little middle section here

that really compartmentalizes off the

kitchen be really nice to be able to

open this up

although it could create some

complications if any one of these is

bearing it even potentially be worth

just leaving a post so you have to so

you can minimize your building and

safety requirements but anyway

coming into here walking into this

closet a little weird right not sure

that it's necessary if you could open

this up and create much more of a

flowing dynamic in the house i think

that would work well because then you'd

also be connecting the dining room to

the family room to the kitchen which

is sort of a popular way of homes being

designed now you've got the triangle

right dining family and kitchen being a

triangle uh this

sort of segmenting things right now with

this sort of weird office

office thing odd another thing you'll

notice here is they painted the

baseboards the same color as the wall

not very popular usually you're going to

want to see a contrast it's a lot more

modern to have a contrast to the colors

jack do you think it would look nice if

these were white and next to this so you

have different colors

and we got a thumbs up from jack okay

good uh obviously you've got acoustic

ceilings here this was built before 1978

so you're probably going to be looking

at lead-based paint you're looking at a

coos or

acoustic that probably contains asbestos

probably if it's the original furnace

asbestos ducting as well uh this furnace

was replaced in the 90s we do have a

fiberglass plenum here

without going into the attic though it's

it's not going to be possible to know if

they've replaced the duckwork but a

quick peek in the attic you would know

this unit also looks like it's already

kind of getting to the end of its life

see this condensation right here on uh

on the exhaust pipe this is a sign of

something known as short cycling where

basically the unit turns on and off

frequently and creates condensation on

the exhaust pipe

not good nah so

jack you doing all right

all right get over to the bathroom over

here

first you're gonna notice a few doors

have uh have have

damaged them kind of right at like fist

level uh looks like there was a patch

done right here and then this entire

door was actually replaced

six panel door circa early 2000's and uh

this one has another one right here uh

most of the time you're gonna have to

replace doors like this but uh this

surround actually not in horrible shape

not in bad shape at all and from what i

could see it looks like the property has

been replaced with copper plumbing water

heaters copper plumbing it

is a little difficult to tell what we

have here so i'll take a take the tip of

a key here

and uh let's see if we can

get a little bit of a look-see here ah

this might still be galvanized

yeah

so it's only been partially re-plumped

which is a little bit of a bummer

yeah so half replied probably the

outside the kitchen and the uh

and the backyard plumbing's expensive

you go to reply re-pipe an entire

property probably looking at six

thousand dollars out here in california

and i'll take a peek under the kitchen

sink kind of gives you the original

cabinetry look here i don't

really love the condition of these

cabinets usually i love keeping cabinets

when i can

but um not loving the condition of the

cabinets a little difficult to see uh

this kind of signifies probably original

plumbing here uh the electrical panels

original they've added a few gfcis here

but otherwise pretty beat up i mean

everything about the cabinets is sort of

being chipped and eaten up and chewed

away already or grimy

doesn't doesn't make it super desirable

this was probably a rental

uh something that uh

you know need it didn't didn't have like

a homeowner over improving it right it's

also a little funky here look at this

sort of countertop how they put uh they

went with a cheaper

cooktop or oven unit range basically and

rather than getting the more expensive

ones that are flat they ended up just

putting a formica piece or formica

wrapped two by eight right here

to sort of cover

the back which is not working at all if

you ever do a range like this you would

just get one with the controls in the

front jack we're almost done okay

[Music]

we'll show the oranges in one minute

okay jack we're gonna show the bedrooms

and then the oranges is that a deal all

right good deal

so uh you know this used to be back in

the day a door frame here and a lot of

chips a lot of nicks in the property

just a beat up property it's unfortunate

but uh oh man they just painted right

over this i mean this is just it's just

lazy to me this looks like honestly like

seeing that

it looks like lazy landlord this is like

blow and go kind of landlord who went

through here it's everything's beat up

and chipped up about this place it's

really crusty and kind of nasty i mean

look at this look at this janky janky

work here this is a kind of property

that's just like

ugh

like i don't even know that i want to

own something like this because it's

just every

corner you go to or every new turn you

make you feel like what is this like who

does what kind of craftsmanship is this

it's not it's non-existent craftsmanship

it's horrible i mean it just the more i

look around the more i'm like gosh

could you have been any more like crusty

uh with with like the big drips right

here and just

everything about it like even though

like the rusty color up there like what

happened here how many leaks have been

painted over in this place the windows i

mean just like i mean i have properties

with old windows but god lay this this

is

crusty

this is like a

oh

it's actually not as horrible it's like

but i mean what is this nail look at

that hold on

look at this

this screw here just going through the

window screen because they

probably lost the original screens

screen screws

and then you can even see here

non-weathered what looks like a

potentially a drywall screw right here

just uh

the more i look at this thing the closer

i look at this the more i look at this

and go this is more than just a a fixer

i mean look even the six panel door has

already been smashed you see this jack

look at it split

all right crazy huh

somebody broke it in huh jack

what's that

yeah a big old hole how do you think

that happened jack

tnt okay yeah uh so

i don't know i mean

like this room doesn't seem as bad again

the same blow and go kind of navajo

white i like to scrape the ceilings it's

not that hard to do even with asbestos

look up the ocean rules for protecting

yourself with asbestos it's actually not

that hard uh it's so overblown the fear

for another roof leak over here so on

this one you've got original plumbing

original electrical partial plumbing

upgrade but i don't trust anything these

people did looking around at this thing

uh the roof needs to be replaced i mean

these are big system things that make

this a very expensive property gosh even

the sink has a massive crack like how do

you crack the sink like that it's just

ah

i don't get it you know this

i've had one of these before and uh

actually had it end up uh

leaking in the foundation i'll link a

video in the description down below it's

kind of cool

you can see we had we had to excavate

the entire thing out and uh and the

insurance company fortunately covered it

but the whole thing backed up it was a

disaster but uh that was thankfully

because it created damage and insurable

event

all right jack what are you doing the

water works little guy

uh no no exhaust fans in the bathrooms

you know this is the the lazy landlord

put the larger face plate over these see

this is a super sized face plate compare

that to a normal face plate let me see

if i can see like this is more of a

normal sized face play look at how much

smaller this one is compared to that

last one no no please jack turn it off

okay

we're in california we don't have a lot

of water uh i wouldn't be surprised if

this was like either a room rental or or

something but

every room's got different sort of a

different motif i mean this is a blue

framing around the window and then uh

and the closet and then you've got

the white sort of 70s paneling here

uh man

rough

uh oh yeah look at this every every room

is keyed

ugh

funky another damaged door

uh i mean all the all the doors are gone

here uh

see like these are the things that just

make this like real estate unprofitable

because you go in here it's like oh i

just need to put flooring in and paint

in it well then you look you go no every

door needs to be replaced uh the

electrical system is old the plumbing

system's old the roof is shot uh any

work that they've done is shoddy

craftsmanship so you're tempted to

replace it there are nicks and damage

everywhere it's um

this is marble paper over the closet

like it doesn't make sense

it doesn't make sense ah

if this is this is

i mean it's not like it's bad but it's

just abused is what it is uh it's

nothing that can't be fixed but

ah league just abused i i just don't

personally i don't buy abused properties

i buy i try to buy properties where

they're dated and ugly

yes sir

what you have a light switch yeah that

works

that works

i'm like what's special about a light

switch son well this one works

that's a good one jack there you go look

at that

uh so here's just another example of

kind of like cheesy landlord i i

honestly i hate to say this i'm like i'm

a landlord but i don't do this kind of

bull crap look at this they put linoleum

over

uh this is linoleum right which is just

like sheet vinyl and then they put it

over

uh the old linoleum that was here that's

also chipped and they obviously didn't

do a good job because now the vinyl is

peeling up off the other vinyl which is

also chipped and damaged i mean look how

grimy this place is it's just disgusting

and again i'm i'm all for buying places

that are gross but like

like if this place had updated plumbing

a new roof and new windows i'd be like

yeah give me so you know what give me

some mold while you're at it but there's

nothing good about this place i mean

maybe

if there's one thing it's this 800 water

heater that actually looks like it

i was going to say it's pseudo look

professional because they actually

drained the temperature pressure relief

valve to the outside and uh

looked like a professional install but

no smitty pan

but it's it's actually nicely plug uh

blocked which is good that's another

lazy thing

oh thank you jack we'll try to take a

look at that in a moment

copper plumbing here which is nice they

put a little probably a soft water loop

in here to wash a car or something but

otherwise just

kind of sad honestly janky you got the

exposed romex over here to wire in

a fluorescent light which is just

another code violation draping uh the

yellow cable there through the attic

it's silliness where's that one that you

saw and we'll go out back i'll show you

the electrical panel here in a second

what do you got jack

oh yeah you got the fan that works all

right jack let's take a look in the

backyard

what you want to look at the oranges

just not loving this well i didn't even

show off the crack in the foundy but

now we're at this point

now we can go back to it so uh quick

note on on the roof since we're here and

we can look at it so uh

the leaks appear to be where the valleys

are so valleys are where the two parts

of the roof come together all the

staining seems to be kind of like right

in the middle of those which is a very

very common place for there to be leaves

or debris in the water to pool and then

anytime water pools water can easily get

under the asphalt shingle rather than

just rolling off like a duck's back

uh and then this is not a good idea

either to have like a curb next to your

property like this and then and then a

bunch of water that tenants you're gonna

put in here uh which would just damage

the foundation uh very bad idea to put

this next to a property i i personally

would probably get rid of this

uh or you know like an easy thing you

can do is like

flat like frame it out and flat cement

it

and then it's like a cement bench that

actually

really good idea i'm proud of myself for

that

um

yeah because i mean if you got rid of it

then you're gonna have all that stucco

damage on the side of the property it's

not gonna be great uh we'll take a look

at the old electrical panel here and uh

then we'll look at jack's oranges looks

like they had a shed back here

definitely want to paint these fences

the fence actually not in horrible shape

jack

there you are okay

so electrical panel over here chimneys

missing a chimney cap both of these

houses are missing caps on the chimney

gotta put caps on the chimney uh people

don't do that they're like 100 bucks

look at this old rusty crusty zinsco

recalled electrical panel i wouldn't be

surprised

if we open this jack would you mind

holding the camera for a second

if we open this up if we see some arcing

can you just hold it kind of like that

don't push any buttons if you can okay

all right i'll kind of point it towards

where that is

down a little bit

okay so that way if i get zapped okay

hold it right there that's good that's

good up a little bit yeah yeah right

there that's perfect okay hold on a sec

let's see if dad gets zapped here oh

okay uh so

not much to see here other than a lot of

dust and grossness uh actually i'm

surprised it's for what it is it's not

in terrible condition it's a little

rusty in there

thank you jack for holding that a little

rusty in there

but no clear signs of arcing

so not horrible copper wiring throughout

which is good uh jack would you mind

holding this whole or you know what i'll

just put it right here that's all right

oh and we got some termites on the fence

right here so i'll show you what

that looks like for giggles

but uh this is the worst part honestly

taking it out is one thing but

oh the big leads are right there and i

don't want to get shocked by those

because

that's a lot of a lot of potential

amperage

oh still 120 volts times two though

there we go

okay oh they put a surge protector on

the house i thought i was the only

person who put surge protectors on they

even used the same one i did anyway uh

these are termite droppings right here

you can kind of see just the little

termite frass they call it in there and

the little channels that they create

not a big deal you fumigate the house if

you wanted to but dry wood termites out

here pretty common

yeah you're gonna kick around

yeah you are all right so uh

for the privacy sake of the property i'm

not going to show the front of the house

uh otherwise i just don't want to hear

about it especially since i wasn't like

the most optimistic

and there's a

there's a bungee cord hanging from the

roof with a nail in it all right the

oranges and then i want to show the

crack in the foundation which i want to

talk about uh yes so uh we have uh i'm

not sure these look like lemons

these are lemons

you've got oranges i saw oranges here

these are oranges uh there there they

are orange oranges

yeah

we we are kind of out of room in the

go-kart we did go-kart over here

so kind of kind of limited our room here

but otherwise no major two stories next

to you kind of like that this flat roof

over here looks like an add-on

uh see and you get a big flat roof like

that looks like an oh man what happened

to that door next door now i kind of

want to know what's going on next door

because when you oh gosh jack

uh look at this oh yeah this is for sure

an add-on

hold on a second here

what is this funky door

oh it's just some old like foam that

they

sprayed around look at this

in the house yes please jack

that's a little funky and then you can

also see where the add-on starts over

there see where it juts down

it's just just a little funky so i

wonder if that's like a room rental or

something like that

why is the glass look so dusty and look

at this hold on a sec

i got another one

i'm

i don't like anything about this house

so far i don't like the neighbor i don't

like the

the property itself

uh

i mean

yeah i i don't want to just bag on it i

mean it has potential oh and the rat

poop stick to the wall or stuck to the

wall like how do you how do you pull

that off

i really want to know how do you pull

off jack how do you get rap rat poop

stuck to the wall don't touch it

it's literally rat poop stuck to the

wall how did that happen

they probably had some cabinets or boxes

up against here and then they were

running around on us or something and

then

yeah that's a thumbs down all right

let's let's get inside

oh this is just gross but again like i

could deal with growth

it's just this has to be

properly dealt with for the amount of

like just

structural

or like bone bad things like this isn't

even a fire door

no

all right jack let's get inside

it's it's it's thing after thing with

this one

okay so now let's look at the

one of those is gonna be the disposal

okay good don't do the other one okay

the other one's gonna be disposable as

they added one i'm sure all right that

door's locked good so let's take a peek

over at the

foundation that's cracked

uh pretty nicely over here

one two yeah one side check one two

three

four

wait a minute

oh my gosh this was an add-on that's why

it's crack jack

i said don't do the other one

remember

when dad said don't do the other one

there was a reason for that

i told you not to do it

uh so take a look at this just figured

this out so you got one bedroom over

here

one bathroom over here

number two bedroom

number three bedroom

number

two bathroom

and the sink is dripping

turn that off there we go

um

this crack right here because the entire

the house's slab is actually pretty good

look at this

and that's kind of weird it almost seems

like there's a close-up there like that

wall there but anyway the slab not that

bad you know this is the worst

which that's not that bad for a 1964

house that crack right there well it's a

little larger than a hairline crack i'd

say not that bad

a lot of this slap you know another

little hair line over here super nominal

like that's that's nothing

you come over here and i'm looking at

this like man that's a crack

take a look at that

see and this folks

is actually a settlement crack because

look at that they're two totally

separate slabs

so this back section

was an add-on

now it makes sense

so they added

one

uh room probably and now it makes sense

why they have the wood paneling because

they probably added this in the 70s so

check for permits on this

so they added two bedrooms

with the 70s paneling

and i wonder how they ended up pulling

off getting the ductwork over here so

that'd be interesting uh one sec almost

done jack uh but

now you have a five bedroom two bath no

bed bathrooms they added definitely

gotta make sure this is permitted let's

take one more look out back and let's go

yes jack um can i count how many bikes

is worth yes but don't touch that one in

the kitchen again okay

thank you so jack's doing our home

inspection

all right

let's see if we can identify from the

outside

or the add-on one

but uh yeah i mean you would want to

epoxy seal that whole

cobweb nice

uh oh yeah yeah you can definitely see

it

take a look at it right here

see that

look at that right there in the stucco

pretty obvious

they even uh they even go to a different

kind

[Music]

a different kind of or smaller material

here uh well you got your transition

piece right here uh so you go from sort

of like uh original two by fours to what

looked like new school two by fours

and uh and then more of like a two by

six in the middle

six that work and one in the garage jack

do you like this house

so so

yeah we'll have to we'll have to let the

commenters decide so let me know folks

did you like this house it's a 600

nice 680 000 house

that's probably you know if this were

dolled up

uh like if i could buy this which i'm

not going to be able to but if i was

able to buy this for

six

i'd probably be able to flip it for

eight

nice but then i'd be able to actually

put the money in that this house needs

but

plumbing electrical

roof

uh

yeah that's not bad kind of weird

doesn't have another bathroom but i mean

the add-on if it's permitted not

terrible

good job jack

so maybe that'll give it some extra

value but windows

all the funkiness of it you know what

it's like it's an eight plus house

uh in this neighborhood could even be

8.25 roof

uh but you're gonna have to spend at

least bare minimum

75k

getting all that stuff up to date unless

you just didn't do the plumbing you

didn't do the electrical you patched the

roof and you just went super cheap on it

but i don't think this house deserves

super duper cheap because it kind of

needs the other stuff

uh i don't know maybe i'm overestimating

but again you put seventy thousand

dollars into this then you're in at 750

by the time you pay realtors and selling

fees you sell for eight your break even

or losing money that's no good so

i don't know i mean i wouldn't be

surprised if flipper gets it but

for me in terms of something to keep

no thanks too many too many problems too

many big expenses that i don't want to

deal with

only ate that work i think so thanks

jack thanks for helping you ready to go

back in the go-kart you want to see the

go-kart take a look at the go-kart we

got

youtube

if you like

go-karts and you want something like

this go to met kevin dot com cart

matt kevin.com cart k-a-r-t or c-a-r-t

all right so i just did want to run some

quick numbers on it if with this extra

square footage well let me first say

we're sealing down guaranteed at nine

hundred thousand dollars at nine hundred

thousand dollars actually you're way

above you have a two thousand square

foot home which means you've got about

500 extra square feet you've got an

extra bathroom and you've got a 90s

build which is about 30 years newer so

that honestly means this particular

property probably caps out somewhere

around 8 30

although if the market continues on this

path it's on it wouldn't shock me for it

to sell for like 8.50 fixed up which if

the property sells for list price at six

hundred eighty thousand dollars and you

put

seventy thousand dollars into it i'm

gonna call it roof 10k a plumbing

electrical

10k might not be re-piping everything

but making everything safe in quality

and fixing the issues there are new

valves on that so now you're at 20km

paint and flooring inside out for paint

uh plus flooring you're probably gonna

be another 20k here so now you're at 40

000

and you still haven't touched the wall

uh or or uh light fixture well plumbing

and electrical or throw that in there so

you're looking at the wall the kitchen

bathroom vanities uh because you could

probably yeah i don't want to keep the

vanity so you probably keep the tub in

the shower the little triangle shower

that you've got in the master not the

most ideal but short of replacing

everything uh you're you're gonna be

knocking on the door of probably seventy

thousand dollars i think relatively

quickly on this one so uh let's go with

and that's not even i mean then if you

have a sewer issue on top of that

that's just you're gonna break the bank

i don't even know what the ducting is

like uh uh you know the the furnace

already looks put so you're usually

gonna blow the extra 30k on your kitchen

vanities fixtures finishes furnace and

potentially other issues so if you buy

it for let's say you got it for list

price 680 add 70 000 into it you're in

for 750 if you were to flip it

uh you'd probably be looking at a break

even of about

798 000

which hey i mean if you could sell it

for 830 000 that'd be like a 32k profit

especially if you got this moving fast

and your holding costs were low

uh

not horrible if you wanted this as a

rental again i think you really you max

out at like 825 830. uh i wouldn't be

surprised if this ends up going out with

multiple offers though and ends up

selling for over listing price uh

probably unless there's a creative loan

buyer probably going to go out with a

loan

not my favorite kind probably would be

looking for something that needs a

little bit less work it's a lot of money

to tie up and a lot of work to tie up

into a property that i just don't love

as much uh not not particularly my

favorite like if this were in a location

in a different location

maybe i'd consider it and you've got the

question mark of the neighbor you got

the question mark permitting which i

could look up to see if it's permitted

but i'm not gonna do that right now

because i just don't like it i'm just

not interested in it but hey there's

room there for somebody to make profit

on it if they kept it as a property that

like somebody's starting out with three

and a half percent down you do the

little carpet and the roof patch and

certification or whatever there's upside

in it there is upside in it

just know you're getting into a property

that was

probably a room rental style property

and the people didn't care and they beat

it up but and again that that's just a

matter of a little bit of extra molding

and the windows maybe you don't

necessarily have to do the windows but

you know it's so temperate the climate

out here but anyway these are just some

extra thoughts all right thanks so much

for watching this remember if you want

to know all of my thoughts on real

estate investing and my tricks for

property management getting great

tenants who actually take care of

properties uh and and how to take care

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don't get screwed in real estate check

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and we'll see in the next one thanks so

much bye

[Music]