Transcript for Seasoned Home Flippers Offer Tips to Avoid Pitfalls
This -- -- it is the only bathroom. It's Monday morning -- Charlotte, North Carolina following a pair of house clippers do anything electrical or plumbing. I don't think it's an update to women -- -- -- real estate for decades. Looking for their next big school but this property looks like a home buyers nightmare 11100 square feet of hidden horrors. That's up from the exterior windows were probably happier place there's definitely a good bit of what -- would rot warped floors -- dated back after. And a special surprise in the master closet. I don't think this is just kind of pain six. With the housing market improving since the crash of 2008 home builders like him Williams and Maria -- are taking advantage of the turnaround abstinence only now we need to be beaten. Aren't so what do you think of this line. Well a lot of work there are some red flags from this -- I didn't -- great property. Fleets in North Carolina are up 14%. In the last year. Clippers averaging 50000 dollars gross profit per property. Memory is say this 175000. Dollar property -- the -- renovations and additions. Could sell for as much as 500. Dollars. Across town at least half a stay at home mom and her friend Carmela and -- -- sister Alina our first time flippers. Tried to get into the game. A lot of people would say it should never get into business with friends or family leading health. And their home -- -- steal money to be made. We definitely miss the heyday. Really cheap housing but then we were worried that would have trouble -- after losing out on six other properties in bidding wars. They -- this modest three bedroom for 150000. Dollars what did it look like when you pull that off. I don't doubt that kitchen floor was sinking and you need Brockton in your kind of crack head -- the yard was a -- all this survey are still can't figure out exactly where the property line -- between renovations and real estate fees. They put 60000. Dollars into the project figuring things out as they went -- -- looks like standard that. The Philly sound like you know it's what husbands and they can say. When you told them Wear -- he apartment and then when we can't take -- the mortgage news a little bit more nervous. When he had put in money and -- -- spent eight years helping her husband Chris in his physicians practice off the grid. And raising their daughters but it was the itch to create her own business that led to this gamble -- It scared him. -- first -- hasn't really. Yeah. First -- Real estate location location location. And not every market is as -- -- Charlotte making a profit can be tough. To make this work for a living you gotta be worth about four six at least for six of its more -- -- year -- -- -- -- -- We twelve slips under their belts even read our scouting is up and coming neighborhood -- homes to add to their portfolio. -- -- we already have blood going up on this block the people that owned it and lived in it for forty years were actually here to watch it that now. Three -- three McDonnell. Will be no more. This used to be -- 12100 square foot home. But for 240000. Dollars. -- Maria tore it down and are completely rebuilding 3800. Square feet they plan on putting it on the market for. 899000. Dollars. I think the toughest thing right now is finding the deals two years ago able to find. This type of property over and over and over can't see -- reporters here. And eighteen for an average return of 25 to 30% on each rehab property it looks easy on TV but it's not easy most people lose money on flat I know a lot of people. That -- -- get -- some of these deals and the -- they can do along the -- themselves and then when it becomes complicated. And they have to hire the people and they -- fat -- that -- stand they -- the lighting for sure we need the butcher block and they bargain behind her every. Lighting -- counter -- and molding because every dollar saved is another dollar in their pocket. By the church. -- -- Middle -- and -- -- his first time plant was finally finished after tearing down a Walt removing the chimney and guiding the kitchen enduring. More cases the poison ivy. And surviving -- -- counter. There -- lightning twice you know different -- and they recently listed the property. For 275000. Dollars. What did -- really think at this one. I think personally for me we want something that we can grow into our experts well. But even after a successful open house they still don't have any offers me -- to fifty you're done. We have -- forty million anymore. And that leads the women to seriously assessed their finances and how long making keep the house on the market and Priscilla Campbell until January. -- -- -- you know those marriages everytime he knows me mortgage -- If they managed to sell for the list price of 275 the bill -- when he 7000 dollars which they plan to invest in their next flip. But if they have to drop the price and just make a few thousand dollars -- they say it's still worth I think it. Will be a little like watching your little and go off to college when they're eighteen and it's definitely I haven't sold -- -- -- yeah. I. If they're hoping the house -- suit. -- For rails and build leased out shoveling snow capped the fourteen -- For Nightline I'm Rebecca Jarvis in Charlotte, North Carolina.
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