"TAREK:" "Flipping houses is a risky business." "Tarek?" "I'm Tarek, and this is my wife, Christina." "This is our worst buy yet." "We buy the ugliest..." "Wow." "...the nastiest..." "[ Screams ] ...the most run-down houses that we can find." "Oh, my God." "And we transform them into beautiful homes that every buyer dreams of." "We pay for these houses in cash, sometimes sight unseen." "No matter how we look at this house, it's gonna be a risk." "And you never know what you've got until you walk through that door." "No, Christina, I would like to stay outside." "Well, what kind of issue we having, dude?" "Are you serious?" "Oh, my God." "What is it?" "The bigger the disaster, the better the makeover." "I'm thinking crystal chandeliers." "What do you mean, chandeliers?" "Oh, wait a minute." "All right." "So this house we're going to look at right now, it just came on the market." "It is a short sale." "It's in an area we know." "It's right by our old office in Anaheim Hills." "CHRISTINA:" "Even though I'm more than 6 months pregnant with our baby boy," "I'm still heading out to look at homes with Tarek." "We're trying to keep our flips local until the baby's born." "It's, uh, two bedroom." "It says 2 1/2 bath." "And they're asking $425,000." "Okay." "That's so cheap for a house in Anaheim Hills." "I found comps, some as high as $600,000." "Sounds too good to be true." "Well, it's kind of a house." "It's attached on one side." "It's under an HOA." "So, that's gonna limit some of the buyers because a lot of buyers don't like paying HOA fees." "So we've dealt with HOAs in the past, and sometimes it can be a nightmare." "Here it is." "Wow." "That is one ugly house." "Well, let's go check it out." "What do you think about the outside?" "This is probably, literally, the worst house in the neighborhood, though." "The houses are attached." "Yeah." "Where's the front door?" "No." "That's the neighbor's house." "That can't be the front door, right?" "There's a gate right here with a doorbell." "So..." "You're kidding me." "Looks like..." "Is it the front?" "No." "It's not because you're walking into bushes." "Okay, well, let's go look because I don't see a front door anywhere else." "What in the -- This is really awkward." "You can't see the front door with all these overgrown bushes." "It's definitely the most interesting house in the neighborhood -- That's for sure." "Look at this roof." "I know." "It's horrific." "It's so bad." "I'm kind of scared to see the inside now, based on the outside." "There's our front door." "You ready?" "Oh, I'm kind of scared." "Dark." "It's dark." "But, I mean, looks good when you walk in." "The entrance is really big." "High ceilings." "And look at this kitchen." "Ugh, the kitchen is so small." "Oh." "It looks like a really small kitchen that would be in, like, a tiny apartment." "You know what we could do, though?" "If we got rid of this wall, put a big island or peninsula here, it'll overlook the family room." "Oh, yeah." "And even, I feel like, get rid of this wall." "It just seems so pointless." "So here's my thought." "To redo this kitchen, it would cost at least $9,000." "Plus, I would say, 99%, this entire thing is load-bearing." "So, to remove this wall, it would cost around $5,000." "We could create, like, a huge kitchen." "You know what?" "This living area is huge." "Honestly, it's so big, I don't even know what to do with it." "I think it's great that it has a fireplace." "I mean, that could definitely be a focal point." "We could do something really cool with the fireplace." "Yeah, like a stack stone or something." "Yeah." "Let's go look at the bedrooms." "Wow." "Huge bedroom." "It's a big bedroom." "Oh, my God." "Okay." "This is good." "We just need new carpet and a coat of paint." "This is a huge master bathroom, but it's so dated." "This whole thing would have to go." "This would be a complete redesign." "Look at the closet." "That's a huge closet." "Okay." "This has so much potential." "What do you think, cost-wise, to redo this bathroom and the shower layout?" "We're probably looking in here because it's so big, $8,000 to $9,000, maybe." "Okay." "Here's the second bedroom." "It's a decent size." "It's not as big as the first." "The bathroom's decent size." "The good news is there is a tub." "So we can just reconfigure that master bathroom and put, like, a huge shower." "Right." "I would say in here, to remodel this, maybe $6,000, $7,000." "I mean, the good things with this house, it's not " "It's actually not in bad shape." "It's mostly cosmetic." "The worst part is just outside." "The roof needs to be replaced." "That's probably $7,000 to $8,000." "Okay." "So, based on what we walked," "I think it's about $50,000 remodel." "$50,000 including opening up that entire kitchen to make it open up to the family room?" "Okay, let's just say the rehab here will probably be between $50,000 and $55,000." "Based on that, there's still a good spread here." "I ran the comps." "They're in the high fives." "Right." "They're asking $425,000 for this house." "So, I'm ready to write it now." "I wonder if they have any offers." "I'm sure they do, but you know, we'll come in cash." "All right." "Let's go call the agent." "[ Line rings ]" "Uh, this is Tarek El Moussa." "We spoke earlier about your listing in Anaheim Hills, the short sale." "So I wanted to talk to you about writing an offer at the asking price, um, all cash, $425,000." "Okay, thank you." "The bank accepted our all-cash offer of $425,000, and the house is ours." "Our rehab budget is set at $63,000." "$55,000 for the house, plus another $8,000 to clean out the overgrown landscaping and draw attention to the front door." "And now it's time to open up these walls and dig into the small kitchen." "Have at it." "Pregnant people don't stay for demo." "So, love you." "Let me know how it goes." "We have some issues in the kitchen." "Specifically with that wall that you wanted to take down." "And I'd like to show you, but I need you to put that mask on." "Okay, why don't I just give it to her." "No, Christina, I would like to stay outside." "Oh, what kind of issue we having, dude?" "Put the mask on, and I'll show you." "You're pregnant." "No need for you to go inside." "Yeah." "I wasn't planning on it." "All right, Frank." "Let's go do it." "Let me know what's going on in there, okay?" "Holy..." "Oh, my God." "What is it?" "Oh, my God." "TAREK:" "Oh, my God." "What is it?" "Black mold!" "Black mold?" "Yeah!" "Oh, my God." "All this." "And you can see where it's growing." "Christina and I are flipping a house in Anaheim, California, and we were planning on blowing out the wall between the kitchen and the living room." "But once demo started, we found mold everywhere." "We cannot come back until this is contained, treated and gone." "It's really bad." "I would not expect that here." "We were really lucky that the mold didn't spread to the neighbor's unit." "But the removal cost $7,000, so we decided not to spend the money to remove the kitchen wall." "Okay, mold's cleared up." "House is safe." "I understand that the wall can't come down, the mold, blah, blah, blah." "What about actually just doing a -- a large cutout right here?" "That way at least you get the, you know, appearance that the room's bigger?" "How much extra is it to do everything she's wanting?" "You're looking at about $2,800." "That's so doable." "Okay." "Deal." "Okay." "So now let's go upstairs, figure that whole situation out." "Okay." "We've got two bathrooms to design." "This is the master." "I'm thinking just large, huge, grand, walk-in shower." "We have to be very careful with budget." "Because it's such a large shower, we have to keep the material cost at -- at a minimum." "But this is the wow factor." "And for this area, younger family looking for something cool, more modern, they're gonna want that bling factor." "I'm thinking crystal chandeliers." "What are you talk -- What do you mean chandeliers?" "We're not -- we're not..." "Absolutely, we're gonna put a can light, done." "How about you -- you can design and do whatever you want to do in that bathroom." "This bathroom's mine." "You want to challenge my design?" "Yes, a design challenge." "You could have that bathroom." "And I get this bathroom." "Okay, first of all, do you think you could beat me?" "Ye-- yes!" "You think she could beat me?" "He's laughing because he knows I can beat you." "The one thing you got to guarantee is I'm not in the middle of this whole contest." "Frank, who do you have?" "Who " " Frank can't decide because..." "I'm responsible for all of it." "So no." "No." "What we'll do is when people come through the open house, they can look around and people can vote." "And we have to stick to the budget." "Deal." "All right." "Well, game on." "Deal." "There's no way you're winning." "So, my overall theme here is gonna be white, modern and bling." "I want to do this glass mosaic the entire shower wall and then continue all the way to that wall." "So I'm thinking this arabesque tile, just framing around the window, around the soap dish and just only on this back wall." "And the rest would be all the subway tile." "What I want to do is get a vanity mirror to the ceiling." "And then I found some really fun, extra bling-y bathroom lights." "Have you seen Christina's design?" "Of course." "No matter how much Tarek tries to bribe you, my secret stays in this room." "Can you show me the materials?" "Hell no." "How's his design going?" "You just asked me to keep it..." "But we're better friends." "I'm the nicer one." "Tarek wants to know what Christina's doing." "Christina wants to know what Tarek's doing." "Tarek, Christina, Christina, Tarek." "[ Laughs ]" "I feel like, for the kitchen, we should do mostly all white to make it feel bigger." "Agree." "So, white cabinets, white counters, probably a gray flooring, light gray paint." "Think that'll look beautiful." "Perfect." "TAREK:" "Okay, so I know you talked to the HOA." "What did they say about the roof?" "With the stringent guidelines from the HOA, they're gonna have to approve everything before we start the work." "All right." "That's normal." "So they just have to approve what exact kind of roof we're doing?" "We can't touch the roof until we get approval from the HOA." "They don't meet for another 3 weeks." "Three weeks?" "The house should be done in 3 weeks." "We can't wait 3 weeks." "TAREK:" "Christina and I are flipping a home in Anaheim, California." "She's over 6 months pregnant, so we're looking for a fast turnaround." "But we just found out that the homeowners' association might set our flip back." "We can't touch the roof until we get approval from the HOA." "They don't meet for another 3 weeks." "Three weeks?" "The house should be done in 3 weeks." "We can't wait 3 weeks." "I guess that's the risk you take when you buy a house with an HOA." "So in the meantime, we're just gonna keep working on the inside." "Right now, I'm focusing on my bathroom because I have to win the design challenge with Christina." "What do you think, dude?" "I actually like it more than I thought I would." "She's going down." "There's no way she can beat me." "How's that, uh, bathroom coming?" "Good." "Think you have a shot?" "Yeah." "Is yours done?" "Mine's like halfway done." "Have you looked at it?" "No." "I don't even want to see it." "I already know I'm gonna win." "I don't even need to see my competition." "No way." "Unless someone helped you, you're not winning." "Nobody helped me." "Don't peek at mine." "Okay, I won't." "It's kind of cute that Tarek thinks he's gonna have a chance at winning this thing." "But my bathroom is gonna have that wow factor." "Frank and his guys are tiling the shower so that it's a real design piece." "And they're installing white shaker cabinets with a sparkly white countertop." "I can't wait until Tarek sees that I have a chandelier in the bathroom and the closet and the shower and the bedroom." "¶" "TAREK:" "Let's talk about the living room." "So this is kind of gonna be the focal point." "So design-wise, what do you want to do with the fireplace?" "Okay." "So I brought these samples." "This for flooring." "It's just a nice, pretty, neutral gray color, kind of light." "So I picked that for the fireplace, but instead of doing the matte finish, a shiny finish." "It'll just be really modern and square." "[ Whirring ]" "I would say, overall, the design of the kitchen is, like, 10 times better." "Christina's idea of creating this pop out," "I mean, really, really paid off." "FRANK:" "Yeah." "I like that." "Opens up the space." "And the kitchen actually looks a lot bigger." "Well, finally, huh?" "Yeah." "It's finally going on." "Been waiting weeks for the new roof." "It's been a long 3 weeks, and we finally got HOA approval." "I'm glad we were able to keep things moving on the inside, but now we can finally make the outside look amazing." "These are the approved colors from the HOA we got?" "Yeah." "So, this is the approved color for the body of the house." "You mean the stucco and the siding?" "Exactly." "And then we can pick either of these options for the trim." "Okay." "I think this one is too close to the roof color." "I agree." "So I think, you know, to keep it really light and nice, I think these two." "All right." "It's gonna look so much better." "¶" "Hey, what are you up to?" "Oh, nice." "That looks good." "After all the HOA delays," "Christina's getting closer to her due date." "So she's at home getting ready for the baby and I'm finishing up this flip on my own." "Hey, Tarek." "Hey." "What's up, man?" "I like the darker grout with the white tile." "It looks really cool." "It does." "I'll give it to Christina." "She did a really good job here." "But there's one other thing." "I did a better job on my bathroom." "So..." "We'll see about that." "Tarek better not be peeking in on my bathroom." "I know him, and I would not put it past him." "TAREK:" "Since I'm the one overseeing the completion of this flip," "I wouldn't be doing my job if I didn't take a look." "You know, to make sure everything's done to Christina's high standards." "Oh, wait a minute." "Wow." "[ Squeals, laughs ]" "Get exclusive, behind-the-scenes footage and even more reno ideas with our online videos." "Is it possible to take out these windows and turn this into a door instead?" "Plus, check out our favorite house flips" "Oh, wait a minute." "There's no way." "She has chandeliers?" "Wow." "I might actually lose here." "Christina and I are almost finished with the flip in Anaheim, California." "We couldn't agree on what to do for the bathroom design, so we decided that we'd each take on one to see who's the better designer." "After seeing Christina's bathroom," "I've got to be honest, I'm a little worried." "But I got to put my game face on." "All right, so I have a confession." "I'm here at the house in Anaheim, and I cheated and looked at your bathroom." "Well, hey, you're not here, so I need to make sure it's progressing forward." "But let's talk about list price, yeah?" "So, after closing costs and staging, our break even on this house is about $530,000." "I ran the comps, and they're kind of ranging." "So, they're anywhere between, like, the upper fives to as high as $629,900." "But the only issue that we're gonna have is that the higher comps actually have usable yards or views." "Where we don't really have a yard." "So what do you think?" "Should we list on the lower end in the high fives or push it all the way to like $629,900?" "Okay." "So you're thinking $629,900 is a good list price?" "Okay, perfect." "¶" "Clean, simple but nice." "Wow." "This place looks great." "Hey, honey." "How are you feeling?" "It's good." "I just got here to the Anaheim Hills open house." "And, honestly, this place is spectacular." "The pass through between the kitchen and dining room and then also moving the sink and reconfiguring the kitchen, it's honestly a huge difference." "All right." "So I'm walking into your shower area, and I will give you credit -- it does look pretty spectacular." "All right, honey, now for my bathroom." "Oh, this looks so good." "I told you, "I'm in it to win it."" "All right." "So, in my opinion," "I beat your bathroom 60/40." "We'll find out today." "So when the people come through," "I'm not gonna tell them which bathroom's mine, which bathroom's yours." "Honey, I would never, ever cheat." "Love you, bye." "Is this the front?" "I think?" "Is this it?" "Or is this the side yard?" "Hello!" "Hi." "I'm Tarek." "I'm Pam." "Nice to meet you." "Hi, nice to meet you, Tarek." "Who's this little guy?" "This is Luke." "Say hi, Luke." "So, I'll tell you a little bit about the house." "It's, uh, two bedroom, 2 1/2 bath." "It's about 1,900 square feet." "And, uh, we just came on the market for $629,900." "I'd love for you guys to take a look around and let me know what you think." "WOMAN:" "I like the color." "It's really pretty." "It's very pretty." "I like the gray tones in it." "Mm-hmm." "It goes so nice with this countertop." "Did you notice the subway tiles here?" "Yeah." "This is really cool." "If you're cooking something up, you can just put it right here." "It's the quartz kind of looking fireplace." "Just like the kitchen." "They pulled it all together." "MAN:" "That's just big enough." "So, you know, little barbecue there, few couches, and it's good to go." "WOMAN:" "It's -- it's not huge, but it's big enough." "And this is beautiful." "Wow." "What's great about the backsplash is they -- they filled the entire bathroom with it from floor to ceiling." "Even though it's a small bathroom, it looks bigger because of the tiles all the way out." "Oh, my gosh." "I love the chandelier." "Yeah." "And look at the bathroom!" "The lighting, it matches the chandelier." "I like the little tile accent, the kind of Moroccan tile." "And another chandelier." "You're gonna fall in love with this master closet." "So what did you guys think?" "It's amazing." "TAREK:" "What do you feel about the price?" "Price is pretty good." "We spent a little bit more money than we usually do on the upstairs bathrooms." "I want to get your opinion on the master bathroom versus the other bathroom." "Uh, which one do you guys prefer?" "The big master bathroom." "I'd have to say the white design." "I'm in love with the chandeliers." "So..." "Uh-huh." "Um, I think I like the master." "I liked how because it was kind of feminine and pretty." "You don't think the other one was pretty?" "No." "It's a little more masculine." "TAREK:" "So I just wrapped up the open house." "It went well." "Everybody loved the house." "They loved both bathrooms." "But, um, I must say," "I think I got you about 60/40." "All right." "Fine." "I'm lying." "You got me." "I'll give it to you." "So, I don't know." "We had good feedback." "Everybody loved the design." "And, um," "I think we're gonna get some offers." "But we'll find out." "All right." "I'll see you in a little bit, okay?" "Love you." "Buyers really loved Christina's bathroom design." "And after a few weeks on the market, we got an offer at $589,900." "If this deal goes through, after closing costs, we stand to make close to $60,000." "Time to find another house to flip."