Keeping Up with the Joneses
Tarek and Christina follow up on a large family home in Fullerton, CA that is listed for $389,000. They tour the house with their contractor and discover that it will need extensive rehab. Not only will the interior need a full remodel, but the whole roof will also need to be replaced, multiple balconies will need to rebuilt from scratch, and the crumbling driveway needs to be entirely re-poured. However, it might be worth it because Tarek thinks a house this nice, in this area, will sell over $600,000, giving them potentially huge profit margins. But, the 1960's floor plan could seriously hinder its sale price. So Tarek and Christina check out a neighboring home with the identical floor plan that has been recently updated. They like it so much that they decide to replicate the house by opening up their kitchen and master bathroom walls. If they can modernize this mid-century home, it will appeal to a higher end buyer, but the scale of this remodel is pricey. So they cannot afford any unforeseen delays especially because they have to cover $600 a month in HOA fees themselves, until they can finish the rehab and sell the house. Will keeping up with the Joneses make them Flip or Flop?
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