Frank, a high school conselor buys a 100 yr old beach house (s. california) for $550,000, plans to put in $75,000 and sell it for about for over a $150,000 profit. First of all he is a first time flipper and I remember reading a book about a woman who did this for a living and for your first time you should buy something very easy to fix. Basically, a paint and new carpet type of place. Everyone of the flippers in this series is really getting in over there heads.
This house is a small 2 bedroom, 1 bath house and he wants to raise the roof, push out part of the front by 4 ft and add a master suite. He is making major stuctural changes and Kristens shakes her head slowly amazed that he thinks he can do it for so little. Timeline is 18 weeks. He is also planning to live on site because he is renting out his townhouse while this project happens, to save money and live there with his 8 yr old daughter. Another real dumb idea.
Turns out after demo that there is termite damage and no foundation. His contrator, Arturo, hires a friend to do the foundation and it is a sloppy job. Fred then has to hire and expert to do it right. There are a lot of delays on this job partly due to the fact that Arturo, the contractor is over his head and not experienced enough to do the job right, eventually after several months Fred fires him and hires Jaime and pow the jobs goes to super speed. Untill they find and old septic field under where they are pouring the foundation for the master suite and there goes another 15,000 and more delays.
Finally, after 38 wks Fred is finished and the place looks great, but he is asking for $999,999 in a market that the average house goes for $850,000 and that is what all the realtors are pricing it at. At the open house all the customers like the house but all say that it is too expensive. No takers but after a couple of weeks someone buys the house for $1,000,000. And since Fred has 4 kids 2 in college and 2 to go he plans to flip another house. Fred ended up spending over $200,000 in renovations and had extended himself out to the max and he was lucky cause he could have lost everythiing.