Rehab Addict

Investor · Baltimore, MD · Member since 2014 · 78 posts · 48 votes

Like many others, I was originally drawn to the thought of REI after watching too much HGTV, specifically Nicole Curtis' show Rehab Addict. This question is for the seasoned flippers out there...is there any place in the the rehab world for restoring old homes and bringing the charm back in addition to adding modern updates? Would this be profitable as opposed to doing the "typical" rehab or is this wishful thinking on my part?What are your thoughts on this?

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James Wise

Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes

11y

Drew & Jonathan Scott have to be the worst ever at estimates.

Every episode goes like this.

Brothers rehabbing a house built in the 1920's. They open up a wall.

"Oh no, knob & tube! This wasn't in the budget."

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James Wise
Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
11y
Ive heard Nicole Curtis has trouble selling her homes because they are in such Blighted areas of Detroit.
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Scott K.
Real Estate Investor · Madison Heights, MI · Member since 2014 · 693 posts · 216 votes
11y
Originally posted by @James Wise:

Ive heard Nicole Curtis has trouble selling her homes because they are in such Blighted areas of Detroit.
The one she did last year is still just sitting there. She is doing another one in the area though.
The one that is finished is in a tough neighborhood. I have no clue why she would ever ick that house. There are 4 burned out properties right next to the one on S, Campbell.
Also I am not impressed with her work. She claims what should be sub floor to be hardwood flooring.
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Scott K.
Real Estate Investor · Madison Heights, MI · Member since 2014 · 693 posts · 216 votes
11y
Originally posted by @Rachel Gill:

Like many others, I was originally drawn to the thought of REI after watching too much HGTV, specifically Nicole Curtis' show Rehab Addict. This question is for the seasoned flippers out there...is there any place in the the rehab world for restoring old homes and bringing the charm back in addition to adding modern updates? Would this be profitable as opposed to doing the "typical" rehab or is this wishful thinking on my part?What are your thoughts on this?
She does horrible work. She keeps the old windows in Mn. Why would you keep old windows in an area that gets -20 all the time in the winter. I am not a huge fan of hers.
The cost is much more when trying to rehab the old homes. Old wiring, old pipes, lead paint. You need to keep in mind in most cities when you start rehabbing that means getting inspections and many times they will want a total upgrade of the electrical and plumbing. That can get out of control real fast
Aspestos (sp) is also a huge issue. It can be in anything in these older type of homes.
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Matt R.
Sherman Oaks, CA · Member since 2013 · 3k+ posts · 2k+ votes
11y
In some areas this could be a solid business model. What you see on reality TV might be the most unrealistic example of this business model you could find. Entertaining is their goal and no real business person would likely last doing it that way.
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Paul Ewing
Investor · Boyd, TX · Member since 2014 · 688 posts · 467 votes
11y
The one I really can't get is Flip or Flop. I can't see how you can call things making $30k in profit on a $600k deal a good business model. The one called Fixer Upper based in Waco seems to be the closest to realistic, but they still have some horrible things discovered in their rehab that a basic inspection should have found. I am not sure if these are overlooked to provide dramatic effect or what.
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Rachel Gill
OP
Investor · Baltimore, MD · Member since 2014 · 78 posts · 48 votes
11y
James Wise Scott K. Matt Rosas Thanks for your responses. I happen to like her work and I have a "thing" for old houses. I'm not naive though and realize that there's not a place for emotions in this business. Just wondered if anyone sees any value in saving the charm and character in these old homes.
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Rachel Gill
OP
Investor · Baltimore, MD · Member since 2014 · 78 posts · 48 votes
11y
Paul Ewing I've never seen Flip or Flop. Will have to check that one out. Thanks!
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Rachel Gill
OP
Investor · Baltimore, MD · Member since 2014 · 78 posts · 48 votes
11y
Paul Ewing I love Fixer Upper!
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James Wise
Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
11y
Yea the window thing gets me too. She does a lot of questionable things.
Another thing that bugs me
Normal rehbbers would just put vinyl siding these houses & be done with it. She always scrapes & paints.
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James Wise
Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
11y
Drew & Jonathan Scott have to be the worst ever at estimates.
Every episode goes like this.
Brothers rehabbing a house built in the 1920's. They open up a wall.
"Oh no, knob & tube! This wasn't in the budget."
7 Reply
Rachel Gill
OP
Investor · Baltimore, MD · Member since 2014 · 78 posts · 48 votes
11y
James Wise Agreed! Definitely not a fan of Property Brothers.
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Scott K.
Real Estate Investor · Madison Heights, MI · Member since 2014 · 693 posts · 216 votes
11y
Originally posted by @Rachel Gill:

James Wise Scott K. Matt Rosas Thanks for your responses. I happen to like her work and I have a "thing" for old houses. I'm not naive though and realize that there's not a place for emotions in this business. Just wondered if anyone sees any value in saving the charm and character in these old homes.
well not sure how you can say you like her work. Until you get an up close look at what she does its hard to have an opinion. Sure there is value. But you should see the crap area that she did the Detroit house in. She was and is never going to make money on that property.
You can have a thing for old house but in the end you have to make money. You really need to know what you are doing when it comes to these old houses.
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Rachel Gill
OP
Investor · Baltimore, MD · Member since 2014 · 78 posts · 48 votes
11y
James Wise I think her whole thought process is based on restoring as opposed to remodeling. She tries to bring the home back to its original condition. To make $ I can see the point of the vinyl siding, but she seems more focused on the integrity of the home.
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James Wise
Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
11y
As long as she keeps the ratings up id imagine actually profiting from the resale of the homes would be a small afterthought for N. Curtis.
I actually seen one episode were she was in a bikini. Not sure that had anything to do with house renovations.
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Rachel Gill
OP
Investor · Baltimore, MD · Member since 2014 · 78 posts · 48 votes
11y
@Scott K thank you for your honesty. Guess it's safe to say there is not really a place for this in a successful rehab business.
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James Wise
Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
11y
I don't want it to come off as bashing on the tv shows but they are what they are. TV shows. Nicole Curtis, Property Brothers, Mike Holmes, Armando Montelongo (check out my blog about an Armando seminar Here) Income Properties, Flip/Flop etc.
They are all loosely tied to industry practices with some tweaking to make for a better viewer experience & improve the ratings. Nothing more.
The Property ladder was probably the most realistic of all the shows I have ever seen. That one did not have a star doing the flips & always coming out on top. That one was about regular Joe's doing flips & many of them lost money.
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James Wise
Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
11y
I just googled Property Ladder after writing my last post.
Kristen Kemp the hose of the show who was also the "real estate expert" who gave the flippers advice that they did or did not take is not even a real estate investor. She's an actress. She used to be on saved by the bell.
lol, you can't take anything at face value on any of these shows.
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Howard Manning
Contractor · Sims, NC · Member since 2014 · 54 posts · 16 votes
11y
Hey Rachel. one thing you might consider is reaching out for city, state, and federal grants. There are tons of them out there and they love historical properties, community improvement projects, training un- and under-employed people. All these can apply to rehabbing. I looked into a block improvement project in Wilson and got lots of potential partners such as Habitat for humanity, Bk of Am, BB't. and city preservation society. I have not followed on it yet, been too busy rehabbing. But inner cities have plenty of guys that would love to work on rehabbing and get trained too. In Wilson there are plenty of guys willing to work for $9.00 an hour and some have experience with painting, carpentry, roofing, etc. good luck with it
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Brandon Hicks
Investor · Avilla, IN · Member since 2013 · 796 posts · 769 votes
11y
My favorite was probably The Real Estate Pros with Richard C Davis.
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Howard Manning
Contractor · Sims, NC · Member since 2014 · 54 posts · 16 votes
11y
Oh, another thing Rachel is that you might check with the city for city held properties that they would give away or sell for about a $1000. I just looked at a couple and waiting to check on grants first. Also, ************** has a lot of houses starting out at $1. Basically in depressed but historical areas.
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Derek T.
Real Estate Investor · Prince Geroge's County, MD · Member since 2012 · 392 posts · 104 votes
11y
Rachel I did one in MD that was built close to 1900 and while I wouldn't say I would never do one again, I would just have to make sure the margins are very nice. Literally everything had to be replaced so it was a huge money pit. Closer to DC there is a market for it but for me the spread would have to be great for me to take on another one. There are too many $40-50k rehab deals with $125-150k spread for me to take an $80-90k rehab with the same spread. I definitely wouldn't make it a staple of my business.
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Derek T.
Real Estate Investor · Prince Geroge's County, MD · Member since 2012 · 392 posts · 104 votes
11y
Sorry, my message was posted twice.
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John Quebedeaux
Real Estate Investor · San Diego, CA · Member since 2014 · 27 posts · 58 votes
11y
All those shows are for entertainment. It is always NOT what it appears to be.
Read article below:
Ever since reality television exploded into American homes in the late ‘90s, we’ve had to keep reminding ourselves the same thing.
Even though it says “reality,” it isn’t always real.
That’s especially true with shows that follow house flippers, home remodelers and real estate agents. These processes are usually drawn out, tedious and not very fun to watch, so some liberties are taken during production to make the show interesting to viewers.
HGTV’s “House Hunters” is a notable one. The show hires actors to portray some buyers and usually only approaches buyers who are already in escrow, which means they have to act out reactions to houses they already know they’re not going to buy.
We can’t count how many times we’ve seen a house hunter object to something silly like a room’s paint color or tile scheme.
But what about the network’s new house flipping show, “Flip or Flop?”
Television networks are notoriously guilty of misrepresenting house flipping, and it has no doubt led to some novices getting in over their heads. “Flip or Flop” follows the husband-wife duo of Tarek and Christina El Moussa as they take on distressed properties, renovate them and attempt to sell them.
Some viewers have criticized the show for misrepresenting the costs required in renovations, unrealistic home sale and purchase prices, staging the auction scenes and depicting a couple that mostly only deals with capital. Their contractors are the ones getting their hands dirty, which is a luxury many house flippers can’t afford.
The biggest complaint of all centers around the fact that the couple almost always turns a handsome profit, which any experienced house flipper will tell youisn’t necessarily true.
So what of the El Moussas? Are we watching a young couple scraping by, trying to make it in the business, or is it just another made up Hollywood production?
The people are indeedquite real. They worked in real estate until the housing market crashed, and they’ve been paying the bills by flipping houses ever since.
Business has been going well, with Tarek reporting last year that he had taken on three new employees and expanded his operation into neighboring states. It is also shown that he uses creative financing and help from outside investors to pay for his flips.
As for the rest, nothing has been explicitly revealed.
Those of us with experience in the business can probably pick out the unrealistic parts of the show and surmise how — with a little selective editing and Hollywood magic — everything came together. In the end, the savvy viewer already knows the show is for entertainment and shouldn’t be used as a basis for serious decisions.
After all, it comes back to the old adage.
If it’s too good to be true, it probably is. There’s no such thing as easy money.
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Account Closed
Contractor · Raleigh, NC · Member since 2014 · 651 posts · 510 votes
11y
@Rachel Gill There absolutely is a place for rehabbing and restoring old homes. It's what I primarily do and I find it very profitable, both monetarily and in personal satisfaction.
For you, it will depend on your market, finances and abilities. There are many challenges in the process but it is so worth it.
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Howard Manning
Contractor · Sims, NC · Member since 2014 · 54 posts · 16 votes
11y
Oh, another thing Rachel is that you might check with the city for city held properties that they would give away or sell for about a $1000. I just looked at a couple and waiting to check on grants first. Also, ************** has a lot of houses starting out at $1. Basically in depressed but historical areas. That would be a fast way to get hands on experience with restoration.
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