our first renovation | my real estate startup - HouseHack

so you want to see progress on house

Haack this is what a house looks like

after 51 days of house Haack being

involved with it but first you got to

understand what it looked like the first

time around when we came through here

and we saw the devil on the wall we saw

trash everywhere poop everywhere was

disgusting look at the living room as

you go in there's furniture and garbage

everywhere look at the nastiness of the

kitchen or the restroom or even worse

look upstairs at these bedrooms look at

the bathrooms this is gross nobody wants

to live in this nobody wants to move in

this I'm proud to say after we closed on

this after the end of August it's been

51 days and we're probably within about

2 weeks of having this property rented

out let me take you around and show you

a little bit of the touch-up that we

still have going on these are some of

the leftover things that just bother me

that I want to see finished so first of

all this was all weeded up so we are

going to paint this so we get rid of the

weed uh leftover remnants that have sort

of ripped off the paint from these walls

we want to have this all nice and

consistent so we'll give this a nice

fresh new coat and the neighbors will

love us too if we do this because this

doesn't look that good because it used

to be covered with plants that were all

dead so we got rid of those now this

right here is still some of the original

from when we bought we did add obviously

the mulching here we had to

replace the holdups back here or the

retaining wall back here which we did so

you can see this is beautiful it's a

gorgeous new retaining wall what I'd

like to do is paint that retaining wall

to match this pressure treated or at

least match this fence just so we take

what looks old and start making it look

new but this is beautiful with the

Pebbles here already and the new

retaining wall maybe we'll throw a

little bit of mulch over here and really

clean this up but absolutely gorgeous

work on the retaining wall let's go

inside so as you walk in you can see

we've got flooring down we don't have

the carpet down yet pain is done we've

got the new Hardware in we've got got uh

the doors painted we've got new hardware

on the doors new hinges over here still

some things to do property isn't

completely done but we've already worked

in new light fixtures some small things

that I want to do I don't really love

this tile but it's not worth reglazing

this tile but this gold we can really

make a big difference here we're going

to mask this off with tape we're going

to Black bronze spray paint this you got

to clean it first though otherwise the

spray paint won't last sometimes you can

even steal wool it a little bit doesn't

take long most of the work is in the

prep that's actually generally true when

it comes to painting and so we're gonna

black bronze the gold and that'll look

really nice that'll really clean this up

and then all of a sudden the tile won't

be as much of a statement see the tile

actually looks worse because it's next

to the gold when this is next to the

black bronze it'll look just fine

already done the new flooring we got the

thresholds over here we've got to get

the 2 in fauxwood blinds those are going

to be coming in Windows will be get

cleaned as well once once we're out of

here and everything's nice and clean we

got our new light fixture here we've got

our kitchen here gorgeous a white

countertop gray cabinets we've got the

hardware Garage still needs to be

painted being used as trash storage

right now stainless appliances so pretty

gorgeous I mean much better than what

this was really functional kitchen now

functional space good appliances clean

property uh we've got a new faucet over

here in the bathroom got to throw in a

mirror and a couple toilet bolts which

toilet bolts are sitting there this is

all part of hey got a couple weeks left

obviously there's still stuff to do uh

but it's nice to see some good progress

here and quite frankly in 51 days done a

lot of great work out here touch-up

paints obviously going to come to touch

up the rails after the carpet folks kick

in their carpet there'll be some Nicks

to my baseboard as well I expect that

totally fine totally normal we've got

one more light fixture throwing over

here it's still see the uh smoke

detectors that we had originally I'm

going to replace those with new and then

I it drives me nuts when these stay

dirty so once carpet's done and we're

doing touch-up paint we're going to get

this cleaned actually maybe we'll take

this down and clean it right before the

carpet goes in if we look at the

bathroom over here we've uh done a

special type of glazing on this bathroom

which is really exciting to clean all

the windows and that take a look at this

this countertop is actually glazed which

is remarkable because it looks gorgeous

really great job we got the new light

fixtures in here a little bit of cleanup

here obviously as we reinstall some of

this cabinet hardware which was here

which we decided to keep for the master

closet but otherwise we've got what look

like brand new countertops cabinets uh

faucets sinks beautiful new light

fixtures Hardware bathroom in the shower

very functional over here some parts to

change out what we're going to do is

we're going to bronze the uh tub flow

and the tub controls so so that'll get

solved and this whole Space will look

brand spanking new uh we are doing

carpet upstairs which I know some people

are like oh why why do carpet so what we

decided to do is go with a little bit of

combo where we have the flooring we're

using downstairs in the bathrooms and

laundry and we're going to do carpet in

the bedrooms and Hall some people have a

preference for that for

comfort and it's also about 1/4 the cost

so we're going with that because we

could always change out a rug it's not

that big of a deal and the extra cost it

would have taken to do more of this for

another maybe 800 square ft here just

wasn't worth it for this project we're

not going to get that extra value back

so we're really matching our rental

competition here and that's totally okay

always have to look at what your

competition is doing some markets you go

into you're not even going to replace

the hardware to Brown or bronze hardware

you're just going to leave the gold

Hardware you'll even leave the brown

doors because that's what the

competition is but we like to go in same

kind of standard uh same plan for light

fixture switches you name it so uh

that's this project now let's talk

numbers now before we hit numbers I got

to say I love the combination of rock

and mulch especially put the weed

barrier down it's so low maintenance

it's so easy to add some new mulch in

the future to freshen up add a few extra

bags of rocks if you need and we were

thinking about replacing this but then I

got to the idea thinking you know what

we should do is just paint this it looks

pretty cute looks like a birdhouse give

it a nice little sand spray paint it be

pretty cool as a mailbox so we're going

to keep this we're going to touch it up

a little bit now when it comes to

numbers here's the deal we're going to

be into this project for about

$511,000 now when we bought the project

we were thinking comps might be

somewhere between 610 to 630 because

that's where they were sitting we've

started to see comps move a little

closer to the 600 to 610 range but that

still leaves is a

$90,000 Budget on this property that

we're probably going to be rent ready

for within 60 days that's not too shabby

we think we can do this at scale that's

why you want to learn more by going to

househ hack.com read the offering

circular and as this Market gets a

little soft in this winter we think

we're going to be able to get wedges

that easily average out to $100,000 over

and over again if not more because once

snow starts falling in some of these

Northern climates sell were selling

they're going to be walking away and

we're going to get some nice wedges now

the cool thing is as part of that

renovation on the other house you just

saw we're in now a different house which

here's what it looked like before notice

the trash everywhere how nasty the

kitchen was the water leak that was in

the ceiling how horrible the garage was

given that it had its own growroom in

there this is where we've gotten so far

now this project closed about 4 Weeks

Later so it's about 4 weeks behind and

as you can see there's still a little

bit of trash around but that's okay

ultimately we're actually pretty nicely

progressed the countertops are in the

cabinet pain has been done the

flooring's been done downstairs

appliances need to come in plumbing

fixtures need to come in and so

obviously and some electrical work needs

to be done so there's definitely still

work to do here but we are vastly

progressed compared to where we were

when we closed on this property remember

this one's about 4 weeks behind it's

only about 4 minutes from the last one

and this deal closed for about

$21,000 less than the other deal now

just two straights over from the last

house we were in is this property it's

within 200 ft it's listed for

$635,000 that's almost $200,000 more

than we paid for the other property and

essentially the same neighborhood it's

exciting again this one's a little bit

larger but we think we're doing a great

job of finding wedge deals and we could

not be more excited about the deals that

we're doing and how we're scaling our

Opex because we want to make sure we

minimize those costs for our investors

now no guarantees obviously we are a

startup so anything can happen but go

read more go read the offering circular

at house househ hack.com learn more

about what it is we're doing how we plan

to take properties and turn them into

mini funds and basically create cash

flow that's our goal our goal is to

create cash flow the ER always comes and

says it Kev remember we can't guarantee

cash flow we can't guarantee not making

guarantees this is just the vision and

it's what I'm going to be doing

full-time for I see myself doing this

for at least the next 10 20 years

because I've already been doing this for

the last 10 years I love doing this I

enjoy it I walk comps I walk my

properties I teach I grow my teams

that's how we're going to scale house

hack eventually Nationwide

congratulations man you have done so

much people love you people look up to

you which I say yes meet Kevin where

does this mean we are are in the

economic cycle should we be thinking

about buying real estate should we be

thinking about buying stocks I have a

background in real estate as a real

estate agent real estate broker real

estate investor a stock market investor

and fund manager why not advertise these

things that you told us here we'll we'll

try a little advertising and see how it

goes always great to have you on Kevin

PA there financial analyst and YouTuber

meet

Kevin