The Bungalow Gamble
Tarek and Christina get a lead on a bank-owned (REO) property that is a small 1920's craftsman bungalow in Whittier, CA. They are able to tour the house prior to making an offer, and discover it needs a complete overhaul. It may not be worth flipping. But there is a studio in the back that doesn't seem to be included in the square footage on the listing. If the studio is permitted, it would be a major selling point for potential owners, who might want to offset their mortgage with a renter. They check with the city and discover that it is in fact permitted. And the bank accepts their all cash offer of $182,000. They want to flip this house in 30 days so work begins right away. On Day 1 they discover that the lead paint on the house must be dealt with according to EPA standards at an unexpected cost of 12 thousand dollars! Day 2 and it's a broken water main, which once again destroys the budget! With their profit margin getting gouged, Tarek and Christina hold their breath to see if this bungalow gamble will Flip or Flop.
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