Reaction: "Pro” Contractor RUINS Remodel
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- เผยแพร่เมื่อ 20 ต.ค. 2024
- Matt Risinger from the Build Show just ruined his rental remodel in Austin, Texas & I'm very disappointed; this is NOT how to handle a rental remodel. Learn the real ways of making money with real estate & psychology - use code [WedgeLife] for *29% OFF* metkevin.com/p...
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![[Reaction] “Pro” Contractor STARTS OVER on 6-Month Remodel -- RUINED IT!](/img/n.gif)
Kevin, you just earned my business. I'm looking to educate myself and your course is now on my roadmap for this next year. Great insight.
ashorts52 Thank you so much! Welcome aboard!
Why not start the course now?
You wanna learn from someone who has never actually been a land Lord just being a pompus ass....
His voice gives me a headache. But I am cheap like him. The secret to huge profits in real estate... Cleaning.
Then you’re a fool parting with a fools money. Seriously, google is free and will teach you way more than some get rich quick bs class given in a hotel. This guy will laugh all the way to the bank. I don’t know how much he knows about real estate but I’ve got 30 years as a contractor and this video is about 20% right and 80% ignorance, lack of ethics or lack of experience.
When I bought my house it had a 20 year old ac unit, it didnt blow cool air. Had a HVAC guy come out, recharge it with a sealent mixed in, been working great and its been 6 years later. Only cost $150.00.
Matt Schmitz but is it efficient. Is it costing you money in energy or affecting other systems in use or money?
Hard to say. Not sure how it would affect other "systems", and as far as money, sure maybe it does cost a extra $30 a month to operate compared to a new one. I only run ac 6 months a year at the most. So $180 bucks a year times 10 years which equals approx cost of a new one for my house size. So after 10 years it could pay for itself, but then I would have 10 years on a new unit that may only last for another 10. If i wait till it fails and hopefully it does after it becomes a rental, at that point it can be a tax write off, just my POV, not that it's right or wrong.
Matt Schmitz Definitely can't beat that savings 👍🏽. As for other systems I wasn't sure if you had other components tied to your system like a boiler/ERV/HRV etc.
I had a 30 year old A/C system with the older r22 refrigerant. It was leaking out every couple years and I too had the refrigerant sealant added. The sealant just slowed the leak down, but didn't eliminate it. The cost to recharge r22 was $500 every other year. Recently I replaced it with a heat pump to go along with my solar I had installed last summer.
Overall between solar and the heat pump my yearly bill is down from 2500 to 500 per year. The 500 per year is mainly for connection charges for gas and electric. The gas furnace still runs in extreme cold in January and February, but only below 30 degrees F.
So saving $2000 may not seem like much. But in order to earn enough to pay that, I would have to earn about $2900 to cover the payroll taxes. So in essence, I gave myself a $2900 raise for about $12000 net cost after incentives. Thats over 20% return on the investment.
The biggest thing I get is that the house is a lot more quiet and comfortable. The heat pump compressor and furnace fan are both variable speed. They keep the house at the exact same temperature when the old system was letting the house heat up and cool unevenly. Humidity is no longer a problem, so I no longer need to run a dehumidifier in the basement.
Gregg McClelland Thats awesome to hear. I hope you explored all the federal and tax incentives/rebates too. I know my state of MD really offers alot of money upfront and on the back end for energy retrofits like that especially solar
I watched this remodel TH-cam for some “realistic” ideas for my small “middle American” budget... and I got through it and realized that it’s absolutely NOT a realistic remodel. THANK YOU Kevin for making me feel like I’m not the only one who thinks this is nuts.
Matt let the rental renovation turn personal and went all out gut job.
What is so nuts about it?
Thomas White, too much improvement kills ROI.
@@charlesfoster575 Oh 100%, the guy decided to tear down the house 6 months after starting renovation. I mean, that is insane.
@@LargerThanCats, not necessarily, when you have all of the rat infestations that the house had and want to bring to the current code.
Matt is a LUXURY builder. He is actually planning upgrades even without realizing that he is upgrading.
Ha Ha
I feel like I'd be planning upgrades for my house literally the day after it'd done being built.
Also we're talking about Austin here. It's a different mindset. Some rentals are treated more like a bed and breakfast.
Through connections sponsors and his high level of a building experience, Matt Risinger may be able to do the much fancier remodel close to meet Kevin's budget. But what do I know. I wouldn't have bought the house.
The guy spends 445k on a house and doesn't even walk through it before buying. WTF!
He lives in the area. I imagine he is very familiar with the property.
Those comps better be SIGNIFICANTLY higher than what Kevin was thinking, and even then... money meet drain.
This has been your best video EVER, Kev!!
My take away for doing a remodel is to ask yourself this "Would Kevin freak out?"
If you hear a "Nooooooo!! Noooooooo!! Who cares?!!" then you made the wrong choice!
LOL
good drinking game: take a shot every time Kevin takes his headphones off in frustration
15 min in. Black out drunk
Alcohol poisoning! Here comes your $6000 ambulance ride!
I get the feeling he bought this house 50% to rent and 50% for new content to put on his channel. Lots of how-to videos can come out of this even if it isnt the most optimal decision for a rental rehab.
Along with owning a pressure washing business, I am also a commercial HVAC service technician. You do not "charge up" a system like it's a battery. The coils would freeze up if they were low on refrigerant, in a closed system if it a liquid is low it is because there is a leak. Refrigerant does not evaporate, get used up or dissipate inside the system.
You didnt even get to the part where he says he going to move the staircase lmao
**facepalm**
@Jordan Ballou bro ur clearly a risinger fan boy and i love the dude too but how can you defend changing roof lines, and staircase locations, and the structure of the house, when the video starts with him saying its a guide for people interested in buying investment properties. His budget starts at 75k and the end of the video its up to a quarter million lol. He missed the mark on this one big time. Regardless who its for, the point is that rental property will never recoop the investment of the that rennovation. Just bad advice for what to do on an investment rental property. No disputing that man cmon
@Jordan Ballou I agree with you on the energy upgrades(windows and HVAC) if Matt is paying the power bill. A VRBO means that between his missionary folks staying, he's renting it out for top dollar for a weekend or a week at a time. The tenants need to feel comfortable to give good reviews to keep the property rented at high rents.
With that said, I think moving the front door and the bathroom is really crazy. I think the house layout is fine.
Viewrail staircase at that
@Jordan Ballou VRBO
Update: Matt is STILL working on this house, ripping everything down to the studs and completely demo'd a massive part of the it.
You must have missed the part where he ripped out the studs too and redid all the framing.
chaseoes lmao I saw that too, straight to the slab
He paid 700 grand for a lot and concrete slab. baaa hahah
@@chuckdickey3250 Uh, do you even know what area this house is in? There are million dollar lots all over that area.
It's 1 year after your comment & I hope he isn't still working on it!
Hes just trying to buy up the neighborhood and raise property values. He isn't looking at it as "just a rental."
Yeah I was like homie must be moving in. I have to tell myself with my Airbnb property, it ain't worth it lol
That's beyond assanine.
Why would he raise property value. What is the purpose of that
@@isackhernandez3691 are you saying there is no benefit or you see jo benefit to make sure your neighborhood increases in value??
@@frenchyalicea649 I'm curious about why people do this sort of thing
Kevin, I see your angle and I bet you make a lot of profit. I worked for flippers like you 16 years ago, I got tired of hearing "yes, you do it right , but just fix it with a case of caulk". When I did flips there is a way to it by saving money like RTA cabinets, and still have no guilt when you sell the house by having integrity. What worked for us is "Don't give them a reason to not buy it" not by just being profit driven. I went on to be a custom builder and for a time was entrusted to to complete a 60 million dollar apartment build. Now I share trade secrets and encourage people that want to build their own comfortable house. I also recommend regarding contractors that "If a contractor is more about making money than a reputation, then send him away". Kevin, you sound like the contractors I wouldn't let work on my jobs. I don't know you, but I know this business. Yes you can make a lot of money off people by just making it "good enough". "When Good enough Isn't" is how I do the work right. Kevin, you are why people distrust contractors.
You missed the point on this one. Matt Risenger lives around the corner, this house is for people that are Missionaries with his Church. Again about Building a Reputation. How could he look people in the eye that he is ripping off and taking advantage of. Integrity has made me well off and dept free. Matt and I both share a faith and also the same principles. His show is The BUILD Show. Mine is GO BUILD IT BETTER.
subscribed!! :)
@@dcell7037 Thanks
9:37 my fave part. "!!!!! THE SLIDER WORKED FIIIINNNEEE!!!"
"He's going to move the front door????????" "Shut the front door." Cheezy greatness.
Agree with you. At first, he is bringing a flippers mentality into a rental, and then he adopted a dream Home mentality.
IT'S JUST A RENTAL!!!
When you realize Matt is trying to control the value of his neighborhood by buying everything up and over improving...
Well damn, that conclusion was unexpectedly spot on.
Why don't you buy up all the houses in your neighborhood?
@@alanhowitzer Most people don't have the means. Matt probably does. So, that's why.
@@mattlovespeanuts We should all be trying to buy as many reasonably houses in our neighborhoods as possible.
Alan Fox thats what a multifamily landlord does except they often group the units together under one roof (apartment building) or multiple roofs on one plot (apartment complex) - its financially inefficient to buy up all the homes in your neighborhood and maintain them to simply control property value but yeah I agree the idea is to control as much as possible but to do it under as least as many roofs as possible for maintenance efficiencies sake
He is showing a remodel for home owners remodeling, he just happens to be keeping it as a rental. HIs budget, style and the entire series is not to show what to do for a rental. Love the build show and yours as well.
Why would an owner do that to the house? Buy some vacant land and build a proper house if you are going to throw 200k at this type of shit house, you might as well just build one that fits what you are looking at.
@@viperswhip Austin is all about being trendy and location. It is one of the most moved to cities in the country. Most of the houses, especially closer to downtown, are super old and run-down pieces of crap. But since the population is always growing there, the market doesn't care. People are making big bucks throwing big bucks at these old crappy houses. Like I said, it's mainly about location. In order to build a house like you mentioned, it'll be pretty difficult to find a nice location close to Austin. Half of the city is unbuildable because it's all green belt.
There are an alarming amount of "pro" contractors that are actually noobs 👎
He’s a noob at real estate investing not contracting, why is that hard to understand? It doesn’t mean he’s bad at his job.
Chris invests:
He is a pro contractor and I can tell because my father works for my uncle who is a contractor so I would know the difference having grown up around that and seeing what good is from bad. I even have seen his build show and learned quite a bit actually,
The issue is this, his clients have high expectations and high cost tastes. He tends to think high end and all new due to that, he isn't used to budgeting this extensively and realistic rentals. That is why his remodel videos are not achievable by the everyday people who realistically can't afford it (he even mentions that is why they are doing this video series). They are best scenario and budget isn't an object. If he say were to do a no budge budget and get creative style of competition show than he might have to be forced to do the things that kevin is mentioning. It's also his budget so he like his clients are going overboard, he even mentions that himself.
@@ShiningSakura Well it doesn't really matter. That video is so bad it looks like satire. He said he won't do HGTV and that's literally what he did. MOVE THE DOORS?? ADD WINDOWS??? It was already bad holy shit.
Chris Invests - Personal Finance Videos you pay extra for the low voice......and muscles (from the gym).
When it comes to windows, you have to consider the moisture damage that can occur with bad windows. Its not for the renter. Its to protect your investment.
you talking about the aluminum frames?
Bingo!! At least someone gets it!! Aluminum frame windows, especially in Texas, create lots and lots of condensation!! Where does that pooling condensation go, and yes, with air conditioning there really will be pools of condensation. So the aluminum frame windows, while working fine Kevin, are a huge liability cause you will have rot, mold & mildew issues, possible termite infiltration, higher utility bills, etc, so it’s pretty much mandatory to change out those old aluminum frame windows even tho they still function otherwise your gonna have all kinds of expenses related to the functioning windows, but just because your gonna install new windows doesn’t mean you have to install top of the line windows at $1,200-$1,500 per hole when you can get a spec grade builder window for $150 installed for double pane windows.
And you are absolutely correct, you have to protect your investment!
I'm not in real estate or contracting, but this was the most entertaining vid I've watched in quite some time. Lol. Been a fan of the channel since early on and always enjoy the variety and presentation.
(After “cheap” remodel is complete)
Matt: you know what? It still saids 1970 on the deed, let’s just tear it completely down so it can say 2019.
1970 on the deed won’t matter. It is all about what is inside, location, and curb appeal.
lol this didnt age well
@@VisionsDivided lmao
LouCityStudios wait, did he actually do that? 🤣🤣
shadypalmtree th-cam.com/video/zvZku7YJzFc/w-d-xo.html at ~ 4:02 lmao started as half the house then in same video tore it all down
I can't wait to see Matt Risinger's reaction video to MeetKevin. Matt is smart and open to good ideas.
Donald Lee he charged 150 for a mail box.
Yeah,,, he'll be like,, ok yeah sure use the cheapest material to rip off everyone below you!
I mean some of the stuff is unnecessary and wouldn't recommend doing the extra until you're done with what needs to be done. Especially when it's a budget and I would replace things overtime. You're losing money when it's not available as well but doesn't mean it has to be in bad shape.
@@AJ7- You're completely wrong here. Matt is a builder, he WANTS to build things regardless of costs. But he states at the beginning that he wants to do this on a typical middle-class budget. And then he FAILS to do that spectacularly.
Kevin knows EXACTLY what he's talking about. Pay attention.
Best video I have ever seen. I have an excellent contractor friend that has remodeled several houses and lost money just like your contractor here, Just because it would be cool doesn't mean you should do it. He has overfixed every house he has ever owned. When he builds from scratch they are awesome. Meanwhile the most talented guy I know is worth a couple hundred thousand and his client---me ---is worth a couple of million. I really like your listing of the remodel costs. Again Huge thumbs up.
Kevin, you didn't get to the part when he talks about moving the entire stairway. You know, I had already watched Matt's video the other day when it came out. And like you, I also sat there with my jaw dropped. Apparently, a lot of what you teach must have rubbed off on me because I was also criticizing his decisions on the same things you were freaking out about in this video. Matt might be a good contractor when it comes to spending other people's money. However, as a project manager for a rental rehab? That he is not. Great reaction video Kevin. Keep them coming.
The staircase is bad from a safety angle, and also takes up a huge chunk of the already smallish living room. Any family would hate walking an extra 20 ft through the living room every time they go upstairs.
I renovated my house and considered moving the staircase in a similar fashion, but then I realized it would add a ton of walking and put the bottom further away from an exit door.
In case of danger or fire, you want the stairs very close to an entry door, and firefighters would like the same!
I didn't think I'd see a crossover analysis of one of Risinger's build, but what a pleasant surprise!
Matt is an one of the most innovative builders in the nation.. his focus on building science and practical construction techniques makes him fun to watch and learn from; he's not necessarily focused on budget or the bottom line
Loved getting both takes on this remodel-
do these more PLEASE WE NEED THESE THIS IS LIKE GRAHAM TO MILLENIAL MONEY
I love Graham as well. Just got Kevin in my recommended and subbed
Kevin don’t ever become one of those fake gurus. you are legit the only true TH-camr I love to watch
Matt is use to working on 2 to 3 million dollar homes. He's almost slumming it doing this house and still thinks super high end
More like, Matt is used to working on $2-$3 Million dollar houses, where his horrible decision making is easier absorbed in the home value - And where the clients are further removed from understanding how much bullshit is coming out of his mouth.
@@BrokeTheGamer Because he makes a nice house and not shitty little "aesthetic" fixes like this guy that starts to fall apart in months.
As an electrician I would love too work for you because you seem to know your stuff, I can't stand gc or owners that try to hard to mess everything up
I posted the other day as a painter and commented, but I also have to say that I have done wood repair as well, and your estimate of 5,000 for wood and window repair is spot on!
Kevin obviously knows his stuff! 🙂
I have a feeling Kevin's rentals are slum houses in LA for $3500 a month. Open a closet door and it falls off, doesn't respond to repair requests for 6 months. Looks nice from the outside but is filled with mold, poisonous materials and is actually complete garbage once you move in. You do need to take pride in providing an effective and safe home for people not just a pig in a dress that lines your pockets.
He must be buying this for himself even though he says he’s not. No one in their right mind would move a staircase on a rental.
He says he is going to rent to missionaries from his church at a discount.
@@RoverT65536 not if he starts to go bankrupt, he will not. The market for million dollar homes and renovations dries up first. A home that he bought for 445k sinks another 100k or more into it... the crash comes, that house sits as well. It's not a pretty situation in the least.
@@RoverT65536 It doesnt even make sense, because it sounds like those missionaries wont be staying in it any long period at a time, so they wouldnt even care about half the things he is talking about. He is throwing away money to show off, thats it.
Or a front door...
AustinAirCo You’re dumb. Risinger is probably worth like $15 million or something. The guy is loaded.
I think you are forgetting a couple things..
First, he mentions it will be a VRBO, much different than your traditional rental.
Second, he is a content creator. Buying this home gives him a gold mind of content to produce. Curb-less shower, functionality of high end garage doors, fancy stair systems, just to name a few of his ideas your ripping.
Mike Berner This guy is just ripping to make viewers believe he’s knowledgeable. This is common, TH-cam hot air. And with his numbers there’s no way he’d get anything close to MR quality. I’d like to tour his finished product and talk to his subs.
Kev, this is a great expansion on noob vs pro. A good way to capitalize on reaction videos with your own niche. I'm looking forward to more.
I’m still struggling to understand how this is “middle class” my family makes 80k+ a year, we can’t even fathom having this type of money...
borad39 no, we live in moderate housing. My family has massive health issues, my sister alone has had 17 surgeries.
Could you have bought this house if your sister didn't have 17 surgeries?
What I really like about this video is how you where very liberal with your budget , almost like a worst case scenario. Everyone else that makes these, do the best case cheapest scenario. Awesome work Kevin! I’ve been in you’re course since it’s been open I should interact more! Love the content.
31:54 " When you approach from the eaaastt ssiiidee" im crying llololo!!
LOL
I watched the entire video the other day. I'd love to get Matt's reaction to your reaction. I think it's safe to say that in truth Matt isn't really buying and renoving this property as a true investment but more as a show case for The Build Show. Matt probably has the money. He purchased it from a friend (neighbor) and was definitely not getting a "wedge" deal. While the proposed overhaul (much more than a simple remodel) of the property won't make any investment sense it will, straight up, make for great video, and so perhaps a lot of views.
All these buttkissers totally missed that point. Matt wants to make video money AND have a rental that doesn't need constant attention, or a major reno when sell time comes. There's a slumlord way to do things, and then there's a moral way to do things. Also, all the surrounding houses have not been neglected for 20 years. Higher rental income. And why the "pro" quotation marks? Matt is very successful and probably a much nicer person than Kevin appears to be. Plus he can do it for less with all the free materials and endorsements. Sorry Kevin, you just lost my confidence.
@@knewhunter1 I mostly agree with you. Matt is getting promo materials and can showcase some higher end building techniques applied to a mid-sized home.
However, Matt's stated goal & purpose was to budget out a realistic middle class remodel. To achieve this, he would have needed to start in a sub $300,000 neighborhood, possibly buying a foreclosure to save even more.
I think if Matt had started out saying this was going to be a high end remodel of a midsize home in a half-million dollar neighborhood, expectations wouod have been different.
I wish Matt would come to Michigan and show people what 1920's built homes look like. I have lived in and worked on a 1927, 1925, and 1924 built homes. So much history. The entire structure is nearly an antique. The older hemlock framing lumber alone merits discussion.
As of now that video only have just over 500k views, so its been quite awhile.
@@knewhunter1 so then why name the video the way he does? It's a bait and switch. He called it a "middle class" renovation. It is really neither of those things. That's why people didn't like the video
Plot twist Matt is rebuilding the whole house for himself lol.
He had a back wall that was rotten all the way through.
The front right corner of the house was termite infested.
Mold and mildew throughout.
Completely rat-infested.
Kevin was like "Lipstick it! It'll be fine!"
No. Not it wouldn't.
Basically Matt bought the place with one thing in mind.
It turned out to be unsuitable for that.
So he rolled into a different project instead.
Shit happens.
Now he actually is lol
"And I was thinking about putting a retractable roof on, and hold the Super Bowl in here..."
One thing in his defense, and he even mentions this when talking about the bathroom, these projects are content for his channel and likely will pay for themselves. So for him specifically it is what it is, but agreed it's not sending the right message to the other 99.9% of people who may copy him.
In Texas having single pane windows is probably fine, but in the midwest it would be more cost effective to put in dual pane windows because the heating bills would be through the roof otherwise.
This was a sick loooong video! I would rather watch this than any TV show!
Kevin,
My wife and I are buying our first house in College Station, TX while i finish my degree at Texas A&M. We found a good deal at $182k that has new interior, but older exterior, however the roof is being replaced with a 10yr warranty. We will be living in the house about 2.5 yrs of our 15 yr loan and renting after we move out. I will be adding backyard patio cover and some external security lighting around the entire house. House was build in 1979 and has an outdated HVAC system that still works well. New fence on 2 of 3 sides. What else do you also recommend we do to pull maximum rent? Extra note, I am extremely skilled in carpentry and electrical work.
oh my god i came THIS close to sending you this video for a reaction and then was like, naaah Kevin's probably got a backlog of videos a mile long. this is awesome
Winston Fiore never doubt sending things 😎
I love the idea of “ITS JUST A RENTAL” because you dont need to REMAKE the entire house just to make it rent ready
Love "Thaaa Buuuild Show" but when I watched this I was scratching my head over the budget. I think ultimately he's doing his own version of the unreasonable HGTV shows that he criticized at the beginning. There's a certain amount of EGO attached to his project and channel. That's why he builds million+ dollar houses and remodels.
Good assessment Kevin. I remember watching this video when it first came out and thought dang I don’t think this fits the bill for a typical middle class budget. But now watching it again I’ve realized I think Matt is
Ultimately doing this Reno to be a showcase house and the “rental” reason is the short term plan. He’s making his money on views and the advertising business this might bring his company... so if course he’s gonna bring in the big guns.
Honestly more power to Matt he wants to really improve the home and make it more appealing to renters
Legitimately the most useful thing here... "put in the floors while in escrow"
As someone who's in the process of my first house and looking for deals that most people would pass on, I had NO IDEA you could do that.
Hey Kevin, I use to own a handyman business and followed the TH-cam contractors word like the word of God. I only did high end finishes, high end perfectionists installation, perfect bathroom waterproofing etc. I felt like I ripping the customers off if I did it any other way. (Eventually I closed my business because I could not get enough jobs with my high estimates, and I could not bring myself to do "low quality" work)
Nowadays I have the investor mindset and realize that these guys are all "butter". Maybe it makes you feel good, but it doesn't make you money!
Refrigerants for older HVAC are being phased out, and are rapidly becoming exorbitantly expensive to recharge.
In a VRBO, is the renter paying any utilities?
I'm a noob and I was face palming the whole time 😅
I am with you on the frustration level, I watched his video through my fingers thinking why are you doing it all this way?! grew up in a house that was my parents forever project literally for adding bathrooms and changing bathrooms and converting an external garage into a studio apartment. So much wasted money and time, but I learnt good lessons that mean I will be able to renovate my house myself for the most part and not waste money
I was laughing so hard I was crying! Your reaction by the end was golden! OMG... I would've quit watching too! Matt, it's supposed to be a RENTAL! HELLO! LOL...
Makes me think of that scene in Family Guy when Lois is telling peter all the things that need to get done and she adds the the house needs to be moved a few inches to the left XD
There is a lot of focus on the “rental” aspect. The whole point of this project is to show things a middle classer might do to a house. That being said, this would not be a middle class house in my area.
Yeah, it may not be what he originally thought he was going to do with the house but there's a lot of things that effected that decision.
Like the previous owner was someone he personally knew and so it was a home he wanted to preserve but then he was faced with it having far more damage and built issues than he originally thought he would have to deal with...
Add, it's in his neighborhood so fixing it up also helps his own house property value... Versus not fixing it and risking not being able to sell it and risking it becoming blight for his neighborhood and reducing all the home values...
While many of the improvements will reduce his long term costs and maintenance requirements... It's giving him a ton of free content for his channel and he gets to turn a home that could have been condemned into something that may last over 100 years... Along with getting a lot of the materials and cost covered by sponsors...
Plus he may live in it himself at some point and it gives his family some flexibility and could lower future costs as they can opt to do things like give the present family home to one of the kids and retire into this home, etc. Instead of needing to buy any other properties later when housing costs can be even higher than they are now... Among other scenarios where he can use this property to his advantage...
So there's a lot more going on there than just it being a rental property and multiple of them can apply to other people in different situations with the property they may be working with...
Just not a great source for people only looking for one type of scenario...
Kevin, the garage door is more expensive because of the code requirements here.
The rotten siding will end up with framing issues, which will trigger many other codes *insulation, clipps & fasteners, engineering, certification.
A/C is a huge issue in Texas - that HVAC will cost you more in emergency repair as a rental than replacement. The window replacement, I agree with you - double your screen money and put solar screening over them.
Popcorn ceilings in our area aren't asbestos, scraping is an unnecessary expense for a rental.
Sliders are a nightmare for the security lock requirements here in TX.
The vanity cabinet and counter replacement is just stupid. Add a cheaper eyepop of backsplash tiles and tile the floor to match - neutral color, classic pattern, make sure it works with the white shower. Reskim the shower grout instead.
Replace faucets on shower , sinks, toilet. Never pull the toilet! You trigger all kinds of things with codes.
Totally agree with kitchen assessment...except insulation above the furrdown will require sealed units
Ditch the paneling though.
He's got a huge problem in that garage! I guarantee that house has crick-brick!
If there's mold in the HVAC, guaranteed its fiberboard ducts - that's a duct replacement. Which goes with the system replacement, wrap it to a package that includes the ducts. $10,000-12,500.00
Matt totally screwed the pooch on this.
*My Foolish assumption:* I can't help but think there are many dynamics that make R.E investing in California(and new york for that matter) different than many other places in many important ways notwithstanding principles of R.E investing being the same.
What do you think(respectful replies only☺)?
I think if you're going to rent from someone, rent from someone who has gads of cash to spend and also takes personal pride in great home design and construction. He won't make any money off you but the house will be freaking mint.
I agree. When I lived in SF and LA, the quality of the apartments/condos in my budget were very much like what Kevin (my assumption) manages. They were safe and likely up to code. But he quality was incredibly lackluster. I didn't fault my landlords bc that's what the "standard" was in the market. Now within the same budget ($2.5-3k/month), the condos/homes I rented in PA, AZ , and KY were much higher in quality. The homes had sold-filled doors, real wood flooring, granite counter tops, etc. There is no reason that my prior LA/SF landlords would have invested in such materials for their rental properties- financially it just wouldn't make sense. However, in other markets - such quality was more or less the standard. At the end of the day, I agree with Kevin's approach. You should invest in upgrades that will bring a return (ie - cheapest possible approach while still meeting the minimum safety requirements). There is no shame in that approach.
Rents only go so high.. making your dream home out of a rental is a bad bad idea. Kevin nailed it imo
No area of the country do you add a koi pond and redo the outside for a rental
@@tajmann1 that makes a lot of sense
I think you made some fair points regarding the costs of renovating a house for rental. I've been following Matt's videos on this property and with the later videos its become evident and even stated that he's going to live in the house himself. Probably off-camera decision making based on other stuff he found wrong with the house, led to his budget increasing and therefore making the decision to live in it with his family rather than a rental.
I've had similar experiences in the UK, whereby I would fit pre-primed white paneled doors as opposed to the solid wood doors that would be varnished same with the skirting boards. Flooring wise for my rentals I use LVP as we have some good products in the UK which look like wood, but are virtually industructable as far as a tenant wrecking the floor goes! I normally fully re-wire and re-plumb the house for the same reason you stated - don't want any call backs due to issues with the heating / boiler etc.
Good video and good points made as rental properties need to be refurbished at a minimum cost since all the tenant cares about is the rental price they pay and whether the house is safe and functions correctly- begars can''t be choosers- if they want a luxury finished house, go out and buy one or rent one at a premium price!
To be fair: IMHO, whether VRVO or not, Matt was walking this job as a buyer/owner/builder who's in more of a "permanent" and "long term" mindset, while Kevin is viewing this property strictly from an investor's point of view who is looking to spruce up a property to sell as soon as possible while making profit. Matt is a Builder who has "experts" at his disposal, while Kevin is a Property Investor that remodels to resale/flip rentals/properties.
Side note: Both of these videos were made to appeal to each group of viewers.
Frankly, Matt should just demo the entire house and build a new house ground up, and Kevin could react to a different video entirely! Funny reaction though, Kevin! Love it!
Would be great to see Matt's video to see what an "affordable remodeling project" actually looks like in the end and how much was spent.
Pretty sure Kevin is a buy and hold guy.
50k remodel??? I'm almost 5k saved trying my best to save 10k for my first rental property, how am I suppose to pay that much, even if it's just 10k HOW am I suppose to get that much AGAIN for a remodel??????? I feel like rental property is impossible!
I've been waiting for either you or Graham Stephen to react to this video. 😂
So I know I'm a year late, and this will probably never be seen, but I feel like there's some perspective that Kevin is missing in this video as he hasn't lived down there. So starting off, do not remove the Shed, they are common place down there, your not gonna modernize the house by removing it, your simple taking away an almost necessary feature given how much grows down there, mulch and tree bark won't make it through the spring let alone the summer, so there a lot of yard care that needs to be done. Second replacing the windows actually the right call, unlike Cali, it's not uncommon for that area to get hit with a lot of strong storm, and single pane aluminum windows are absolutely terrible in those conditions, it's actually a safety issue, they should be replaced double pane storm windows. As for the back, this one varies drastically, but more often then not a Concrete deck is also a bad idea, as there are many areas down there where concrete will sink into the earth itself, on top of that it gets much hotter down there and nobody will want to spend any time on or near that patio. just replace the lumber that's there and maybe put down some new rocks. It'll be a lot nicer that way, and not a heated death trap when it's over 100 outside with 80% humidity.
Matt doesn't build homes that profit 100%, he builds homes that last 100 years.
No, in 20 years it will be out of date and need another "Freshening up" to make it cool.
Okay but lets consider this for a minute, that
1. Matt Risinger is a very smart man (which i believer him to be, i've been watching him for a very long time.)
2. The BUYER of the house might come from watching his youtube channel, which is very likely because why amass a large following if you cant convert it to sales?!?
3. Matt is ACTUALLY going to get a lot of sponsors on the remodel for parts of the build, again, you can't hate him for this, he put in the work in terms of branding YEARS ago and any discount he gets is well deserved. (Although its bit misleading to make us feel like its possible for us normal people, even though he swears to list the prices)
and KNOWING these things, Matt RAISES the price he says he bought the house for in order to already set the minimum benchmark, after which he will further raise the price again upon completion. To put in simpler terms, if he bought the house for $350k, and then tells you he bought it for $445k and puts it on the market for $600k Post Renovations
You think he's barely breaking even after spending his $100k(+) budget on the renovations but in reality it was a sales strategy to sell you on a particular price range of the house's value even before you knew it! and the profit is actually $150k post reno cost
i guess we'll never know, but i do know that after he uses the house as a rental for a number of years, he will sell that house, and Matt Risinger builds 50+ year home on the regular so he will make sure the house is well equipped to pay for itself eventually, you can't knock that kind of experience.
Okay Koi pond I'm having a nervous breakdown now
I did notice myself that he seemed to do the exact opposite with the house when what he originally defined as his goals in his first video. I came to the conclusion that 1. it's good content 2. He can afford it. and 3. this may not necessarily be a '$$ rental' like you're defining it but more of a house he can use for charity and a tax write-off. He mentioned VBRO and mission work, not long-term tenants. VBRO clients will appreciate a nice vacation pad and pay for it. I think we've completely missed the point here. But of course, you got great content out of too, right? Mmmm
Matt, says "rental" but he is acting like he is moving.
Alex41 which is why someone will too
Whats missing from the equation is Matt is getting contractor pricing, no fees on the work as he is the contractor which makes kevins 80k an actual 35-40k for him so he has the room.
I watched his show the other day. I assume he wants to "showcase" the products he gets FOR FREE and his channel is also being SPONSORED so you think he's wasting his money renovating this house? I doubt that very much. Not only that he gets to rent this out for a while and maybe sell it down the road for a profit. I'm curious how he installs the windows maybe he'll use the flashing he showed in Germany and how it looks afterwards which I think would be very helpful to watch. He also did a show on decking and I wonder what product he's going to use outside that house? Maybe he'll use steel frame with composite wood or he might use IPE. IPE wood looked really good to me from the video he did oh though I'm a composite wood fan because I hate my wood deck.
It really depends on how far down the road. He is already in the 700k-800k spent for this project/vid with only 525k neighbourhood prices... sounds like it'll really have to go up.
Not to mention he's a contractor. So he brings a lot of skills to the table along with contacts to tradesmen. What someone else would pay isn't what Matt would pay doing the same work.
It's funny, I was originally only watching your videos for stimulus updates. But now I find all of your videos so educational and entertaining that I'm a fan for life. Keep up the great work!
Matt is making his $ on the TH-cam revenue, not the rehab (same story with all of real estate youtube).
I think this evaluation is spot-on in light of the purpose being to prep the house as a short-term rental. **Not every remodel has to involve moving walls and "opening up the floorplan"**!!
Now he just needs to hire that Holmes on Homes guy. He'll be digging up all the plumbing and having a hazmat team in there.
The humidity in Texas is horrific, "kudos to Matt for thinking of his renters." We have very few days in Austin that we are able to open up the windows, and let the fresh air in without feeling like we are in a sauna!
Have you watched any of the follow ups from this initial video?
BTW I wouldn’t live in a house you “remodeled” to save my life.
Why not? Serious question
Gig go to the part where the mold in the grarage is talked about. All he says he would do is remove the mill dew and put up new Sheetrock no investigation to see why it is happening. Just putting lipstick on a pig tells you all you need to know.
Interesting video! It's fun to see how other people price their renos. My husband is a contractor. We bought a 1920 fixer upper in need of serious work a few years back. He and a few of his contractor friends spent 3 months and $30k renovated 90% of the place. The place ended up being sold for 4X the original purchase price+reno budget. We did our own house for about 35K. It's labor that is costly (thank heavens my husband is a contractor lol). Materials - if you know where to look and wait for sales, you'd get some good stuff for cheap.
Missing the point. Matt is custom builder, he said that he might move his family into the house in the future. He Is not building a rental portfolio for everyday tenants. He is also using this home to show best building practices for his TH-cam Channel. I can’t watch your video any more with supercilious comments.
I think you're missing one major point that Matt Risinger will have: His bread and butter of his TH-cam channel is showing renovations. He's tearing this house apart and making such large changes because that's what the video series is. He has sponsors. No matter how much he puts into this remodel, he's going to make it back from sponsorships and AdSense.
I would 100% agree with you for anyone else -- but this is what he does. He's a GC that builds to the highest current levels of standards for efficiency and doing things right.
This whole video I was thinking, "it's a damn rental!"
Great video Kevin. I wish I had someone like you advising me when I renovated my first house. I managed to cut out a lot of the stupid stuff, but I still spent too much on it. There could be a business oportunity here in advising people on SENSIBLE upgrades to rentals, instead of what contractors and architects and designers push them into.
You just watched the business opportunity.
They took the piss out of Matt so freaking hard in the comments of that video, it was pretty glorious lol.
Kev, us contractors only pay our guys 25-30$, so take the labor cost you estimated and multiply by .33 (excluding materials) for actual cost. Also since he owns the business, there’s no materials mark up. Only applicable for contractors. That’s why contractor/investors usually bank big. Keep in mind he doesn’t pay retail for labor for licensed work
This is a VRBO correct? He is using this for his church as well sooo there is different "goal " in mind then just a rental. I do not think its apples to apples . Not the best you have done but i do like these types of vlogs
Kevin, @28:40 when reviewing the drawings from the architect, you read it as "removing shed" What it actually said was "remove shed roof" That's not the roof on top of the old shed, but the style roof that's above the garage. Also, removing that roof leaves that whole wall above the garage exposed which is why it said "add bedroom windows" They're not replacing windows, they're adding them to a wall that didn't exist before. (OK, it "existed" it was just hidden by roof) If you look at the drawing closely it looks like they replaced the "shed roof" with a flat roof.
That being said, I think your points were spot on and I was wondering what you might say about this video when I watched it the other day. Guess now I know. Keep up the good work.
Now THAT'S a reaction video!
I know this is an older video, but how do you feel about retro-fit flush recessed lighting? I've thought about using it in my own home due to its ease of installation.
Kevin, lots of great points and I wholeheartedly agree with many. However, I think there is a BIG difference between VRBO/AirBNB and long-term rentals (our family has had many of both...though most have been "long-term" year plus standard rentals). For VRBO/AirBNB, the aesthetics of the house must pop in photos, and you are continually convincing "renters" to rent the property sight unseen except through photos AND through reviews/feedback of those who stayed and lived in the space. So aesthetic upgrades that you'd NEVER do in a long-term rental start to become MUST DOs in an AirBNB situation. It seems you heavily discounted or ignored this in your commentary. I do think external curb appeal for AirBNB doesn't need as much attention, but significant attention needs to be paid to interior details to make the home feel special...and hence you can charge higher per-night rates, longer minimum rental periods, higher cleaning fees, etc. vs a standard looking home. People are on vacation/travel and often want to splurge a bit.
Also, at least in Seattle, the amount of net rent per-month for AirBNB is *WAY* beyond what a monthly rental would be...in many cases my friends make double in rents via constant short term rentals (which has its downsides too with constant commitment to scheduling/cleaning/etc). So your thresholds for improving things (like trim work, wall detailing/features/wallpaper/paint, and kitchen look) would be much higher than if it was going to be turned into a standard rental.
That said, look forward to your comments on the next round of videos. Insightful!
I love Matt's channel. I lived in Austin for 27 years.
He starts sounding smart, ' avoid TV false remodel stuff '.
He ends up describing a Tarrytown teardown, micro-mansion. ( million dollar Austin neighborhood built in the 40s)
My dramatic, head grabbing and shouts of "Noooooo!" mimicked yours.....even as an Austinite, WTF!!!??
LOL! Your totally right!
He isn't, especially when he says one guy can replace all the rotten siding on the home in 3 days. That's after he said the exterior just needs to be power washed and painted...
You're*
One thing you forgetting is that Matt is a contractor and already has his pro crew. Labor/installation will be fast, not half ass, and cheap since most likely he will be paying them for the day. Materials will be likely on the lower end of the budget. For the average Joe, who doesn't have access to discount warehouse and have a pro crew then for the majority of your audience, you are spot on.
You had me cracking up 😂. Love your passion. “It’s a rental” investment keep it investment, you are so right.
Those Boots Matt Risinger are wearing are the Timberland Pro 88559 Barstow Wedge steel toes. I recently bought a pair of these and I have to say, as long as you're not in wet conditions, because I haven't tested how well it does against moisture, these boots are absolutely fantastic for your daily work boots. They are very comfortable, especially after you wear them in. Best cheap boots I ever bought.
We need a counter for how many times he throws his headphones lol
I liked the trellis idea only because I always hated those big empty entrance voids. As for the front all it needs is some paint, some lighting, and landscape trimming
You’re content is so great. I’m looking forward in purchasing your course soon!
The biggest thing that ‘ruined’ the rebuild was when he took it and ran towards it being his own high end house. No longer the rental redo.
Trying to get attention from Matt’s successful channel. I wouldn’t have this Kevin guy touch my home because he’d paint lipstick on it and cash out huge profit for terrible work.
Trying to get attention? perhaps, but Kevin has plenty of followers of his own. I love the build show and have watched it for a while now. And I like Meet Kevin too. The issue here is Matt is a home builder remodeling a house for himself (he says as much) that he will rent. Kevin points out (several times) that as a rental investment many of these decisions don't make financial sense because they are expensive and the payback is not there. The one thing I would push Kevin on is the HVAC, insulation, and windows - since this is a rental and it is hot here and the landlord is paying the AC bill the payback for upgrading HVAC, insulation and windows might be there. But otherwise I tend to side with Kevin this being a rental and all.
@@faultlessfrank I agree on the HVAC component. 20 years is old for a Texas A/C system, and if it is marginally operational, might as well replace it before the house is rented.
No, the issue is with the mislabeling of the video. It ain't no "middle class" remodel. He basically builds a new home. You would never do that for a rental property. First of all a middle class person probably couldn't afford a $445k house. And especially not one that is a dump. People don't like Matt's video because it's a bait and switch
How do you get the cheapest costs on repairs while making sure they get done quickly and good quality? Where do you search