Ah and remember this video is brought to you by the courses linked down below on building your wealth, use that coupon code linked below 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 gon na. 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 gon na 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 gon na 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 gon na 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, we'll show the oranges in one minute.

Okay, jack, we're gon na, 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 gon na 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 gon na have all that stucco damage on the side of the property. It's not gon na 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 got ta 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 gon na 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 gon na, be the disposal? Okay, good! Don't do the other one. Okay, the other one's gon na 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 got ta 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, 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 gon na 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 gon na 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 gon na - 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 gon na 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 gon na 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 gon na 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 gon na.

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 of those tenants to make sure that you don't get screwed in real Estate check out the programs linked down below there's a course on property management and rental renovations and then separate one of zero to millionaire real estate. Investing if you're trying to get started getting your first property go for zero millionaire. If you are already a landlord you're trying to level up your landlord and rental renovation game, you don't want to. You want to stop wasting money check out the rental, renovations and property management course, thanks.

So much for watching use that coupon code check out the program's link down below on building your wealth and we'll see in the next one thanks. So much bye.