Shocked by Graham Stephan’s Rental Remodel [Reaction]
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- เผยแพร่เมื่อ 16 ก.พ. 2020
- Graham Stephan’s rental remodel is going to be BEAUTIFUL - it’s definitely way more than I would have done though - here are my tips. *Vegas Meetup in 3 Days* metkevin.com/program
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#GrahamStephan #RealEstate #Rental
I just Purchased the Real Estate Investing Course, Ha HA!
welcome aboard!!
Meet Kevin Hi thanks! Have been following your vids for a while, amazing stuff! Just a wealth of knowledge!
Great Decision! Been a member of the Course since 2018 and the Private Live Streams alone are worth the price.
Welcome, Jason!
TSLA stock heading back up! 👍
Graham: *Frugal AF, Makes 20 cent coffee*
Also Graham remodeling: *goes HAM on spending*
Spends where it matters 😂
i respect Graham's approach -- long-term vision, take care of tenants, build loyalty, and make your investments robust.
Oscarbm1234 😂
Dude invested into his property and into peace of mind that he won’t get some BS calls about broken something thats 100yr old. I’m working on my own rental now it’s from 58 it’s like a duplex but in reality just in-laws quarter. One unit is a vacation rental and my summer house so I improved it more than I did t he long term rental unit. It’s all about $ placement. Video to come.
He's frugal and on his personal shit, but if it's for business Graham goes ham
*Confirmed:* Kevin definitely has a front row seat to all of Graham’s videos before they are posted
Haha I like the speculation :P
Let’s start a big conspiracy theory.
It’s because I smash like 🤓
On that note. K-Star and Gram Stam should do a colab like once a month. Now that would be some content.
Definitely! Graham literally posted this video earlier today, I just saw it before the live-stream with Kevin! lol
I'm with you on the minimal refurbishing. This place didn't need every single wall torn out.
Kevin, I really appreciate that you took the time to go step by step on this! I had watched Graham's video previously and as a new investor it had me worried on how much things can cost. I appreciate your honesty and transparency, even when it means criticizing your friend's own renovation!
Kevin is so underrated. Speed and detail. Unmatched. Glad to be here well before 1 million subs.
Ah thanks for that!!
@@MeetKevin hi Kev! Love your videos and Graham's
Man I couldn't agree more
What do you prefer? Simpler rental remodels and buy more deals? Or is it better to upgrade as much as possible while it's vacant? Both methods work! Curious on your thoughts.
Simpler rental remodels and buy more deals
Meet Kevin
My opinion is if it has an adequate LTV and/or can increase the ROI, then go for it! 👍🏾
There just has to be some fiscal sense to do any of those options.
It depends on the area, correct?
The first one , please.
Meet Kevin minimalist, it’s just a rental haha
Do more react videos like this, Kevin! I enjoy the input you have about these properties, especially when you talked about the red flags!
LED on old knob and tube? That's so smart. Never thought of that
What about when a tenant plugs in a 2000w heater?
@@kdrguru yup. Not the safest advice but dont sue him bro!
Wasn’t that video posted this afternoon? That’s quick!
gotta be! :D
Nice way of being polite. It's about the money.
The whole time I was watching Graham’s video, I was thinking, “ok, what would Kevin do?” Lol I’m glad you made this video
Kevin always has a big upper hand in remodeling just because he was a contractor. Most landlords don't have that kind of knowledge to do repairs inexpensively
This gives me flashbacks! A few months ago, I was remodelling a house built in 1913 and what supposed to be a short and cheap up to 30 days job ended up taking more than 3 months and 250% more than the initial budget. It was literally a nightmare watching my money burn and I'm definitely sure a won't be going through something like that ever again.
I was just watching Graham’s video and I was about to comment “now waiting for Kevin to react to your remodel.” 3/4 of the way through his video I got the notification of your video, impeccable timing! Lol
Hahaha nice
You know after all this, *you might as well just bulldoze the house and start from scratch* ;)
Graham Stephan: “I’m cheap!” Kevin: “No, you are financially conservative at times. But I AM CHEAP” Hahah hahah!
Lol
I was waiting for this to drop!!!❤️💚💛
Keep on keeping it real!!!!!!
Big up Kev!!!!!
Had to rip out the wiring and have it completely redone in our rental (it wasn't safe at all, major fire and shock hazards: grounds that were carrying loads because of improper installation, and aluminum directly wired to copper, wires that actually lead no where but were carrying a load, wires that were connect to circuits they shouldn't have been connected to, etc). In doing so, we also tore out PRESSED board that was on the walls--not drywall. This lead to us discovering that some of the headers above doorways were...well, not there--these were load bearing walls and after discovering this we checked the level of the doorways and found they were starting to bow. So now we have to repair structural damage. Plumbing was leaking inside the walls, which we didn't see because of a tube surround when we initially looked at the house.... Over all the exact same thing happened, we went in with intentions of just doing some upgrades and found out that this place was a fire/shock/collapse waiting to happen. We'll have a New/Old house by the time it's done. But it'll be one of the nicest ones on the block! LOL
I do have a question though, what if you own the property outright and are planning on a cash out refinance to reclaim the money that you spent on it and then invest that money again into another property. Wouldn't that make these types of extensive repairs more worth while?
Thats how real world renovations go mate not the nonsense Kevin is saying where u just paint and change carpet..esp an older house at some point u have to deal with roof plumbing electical work insulation windows etc maybe even structural issues
Kevin, keep doing what you’re doing. Analyzing and deep diving into other youtubers deals/investing strategies is absolutely genius. It helps us newbie investors tremendously. 💯🔥
Thank you!!
I gotta say, Kevin you're right.... the house looked fine before... should've just painted, left the original hardwood floors and cabinets etc, and called it a day. 100k+ is practically downpayment for his next rental unit. I know, he doesn't really need it, but.... why not?
"Expect it to cost more than it should, because it totally does." - Fair enough!
"Renovations always cost 20% more than expected and take 20% longer than expected" - Graham Stephan
That's why you double the amount you think it will cost, and that's your budget....
Rick Novotny But by explicitly saying that, it become expected. So now he needs to add another 20%.
Kevin is the man! This is the stuff he teaches you in the course!
I had a strong feeling this reaction video was coming!
I was thinking about Kevin's reaction the entire time I watched Grahams video. Kevin is trying to be so nice about it.
Poor Graham...Looks like the contractor guys did the ole, "okey doke" on him, especially the part about the beams sagging.
I would choose to rent from Graham but if I was a landlord I would listen to you. It is so awesome to listen to both you and Graham.
Well, we do know that there was a lot of termite damage in the home and I wonder if that's why so much work is being done on the house.
Drywood termites out here center around window sills and trim -- usually less than $4-5k for wood repair in a typical 3/2 house in LA
@@MeetKevin that's excellent information. Thank you.
Dude you’re freaky fast with these Graham Reaction videos.
You're spot on as always, love it.
LOL...I've been waiting for this...all day!!!
The Floor kevin happy like a little kid asking may I peel it lol Epic great info
Cool reaction vid, nice to see different perspectives
Thank you!!
modern shower! Very crazy to hear the prices of subbing all this work out. On my rental I just rehab 800 sqft in 3 weeks but I did everything myself just hiring a few demo guys to pull out the junk and I only spent $10,589 for complete rehab interior ,
Niiice
Its amazing isn't it? I'm getting ready to do a light rehab/updating myself, estimating about 10-12k
arturo raygoza arturo raygoza it really is. I see how cost can increase the people you bring on which is great because it frees you up to go make more money some where else while it’s getting done. But sometime I feel contractor / subs are over charging for somethings. I love that my father taught me everything in construction. I’ve built houses in Hawaii start to finish. And the amount he spent on a remodel I could have build a 1200 sqft brand new house in Hawaii. th-cam.com/video/B_JWLBB--sc/w-d-xo.html
Link to 2017 building in Hawaii with my father we do every trade.
I went and liked several comments asking for the official Meet Kevin reaction because we all NEEDED this! 😂 Kevin is the OG of all things real estate 💯
Thank you!!
Keep it up Kevin, love these reaction videos!
"I figured it out! I the Graham version from Millennial Money when it comes to remodels!" 😂
Lol, i saw this coming from Gram Stams thumbnail. "Lol, 100k?! Kev bout to flip out ..." And sure enough. I don't think it would be within a few hours tho XD
Please keep posting more such videos brother! Great work!
Thank you!!
Love how graham calls the joist, joust. 😆
Hey Kevin, this was a really helpful video! Curious why you wouldn't put vinyl in bedroom and transition to hardwood for the rest of the house? Does that look bad or there's a functional case?
Your analysis around 15 minutes I have found to be extremely true. I have spent 100k on a big remodel and was like man I could have gotten away with spending 70k and still gotten the same sale price. Kicking myself in the butt on that one however sometimes you learn by doing. My dad was advocating your typical remodel and I did a Graham remodel and since I sold the property I really should have done your way. Now I'm the wiser though lol.
It's also LA where a couple thousand in remodling will hardly show on the price, since its already expensive
When I watched gram's video, and saw what he did to level the floor I was thinking to myself "Kevin would be heartbroken". And then 9:57 lol
Hahaha yup
I think in certain parts of LA, an extra bathroom is worth $500 a month easy. Also, the quality of tenants makes a difference. Higher quality tenants would probably mean less wear and tear, especially in LA.
I think your simple idea would be more ideal, if I had the choice to fix up this remodel. This was a total gut remodel, one I would expect I would do if I was going to live there. The money would have been better used for another rental or upgrades to other units. Good video!
I know you’ve done this before. Maybe years ago.
But can we have a video on the baby steps to financially set yourself up for your first house, please?
I know it was different for you, because you had help from your daddy, but can you give us a few ways that we can get started?
I’m trying to explain this to my mom.
Us youtube-viewers aren’t really good at sifting through hundreds of your videos to find what we are looking for.
Thanks 🙏🏾
Maige Matthews Hi. If you’re serious about this, go to my channel and watch Lessons 6-9. Probably take about an hour of your time. To find my channel, go to Bill Stewart How to be a financial success. I actually recommend you watch all 9 lessons, but I think you’ll find what you’re looking for in lessons 6-9. Let me know what you think. Thanks and best wishes.
Been waiting for this video
Wow amazing vid. U should do more of these. Came off your other video with "245$ kitchen"
Thank you!!
Ok ok love the idea of redryalling the cieling- if needed but without the drywall onvthe cieling how hard would it be to just rewire the house 60s 70s wire sticks
Holy F$@# Sherlock Holmes! That was some kind of deep dive analysis I've never seen in a review. Love it!
6:15 and again later - Graham says "Ceiling JOUSTS". Red flag of an amateur. I agree with you, Kevin, nice windows would be much more appreciated than perfectly level ceilings. I sag of 1" or more in a ceiling is often not a big deal, and since they opened it up in the first place, they could have fastened some jack studs to the roof rafters to lift the ceiling if it was really that bad.
Lol andrei called it! Love seeing you respond to his video! Do a collaboration with Ben Mallah please!!!
LOL, I wonder when Graham will be making comment videos to your investments 😂 I love these commentary videos. 👍
Amazing how you can do deals in LA area.. in California in general.
this people: how it looks like when a contractor up-sells you
Mario Knob and tube wires and poor structural support is not an up sell, it’s not to code and he would not be allowed to dry wall over that once it was discovered in most areas.
Exactly when they could’ve easily ran a beam detector down each frame
You forgot to factor the "Graham Stephan Custom Home" Premium
He just within the first 5 minutes of the video turned a simple remodel to a COMPLETE DEMO of the ENTIRE HOME. Replace what is necessary, use multicontractural people with licencing, minimulize pre 1920s floors and such, and do the necessary upgrades if needed. Utilize ALL original structural constructs, cover with a sealer or laminate, keep as as ORIGINAL AS POSSIBLE, depending on the area.
I had to watch Graham's vid first and the whole time I was just wondering what Kev was going to call out. 😂
It sounds like Graham is going to end up living in this one. Most of these things he’s doing are things that I would do if it was just going to be a rental
good call, you might be right
I was thinking the same. Then he can live together with GG. ;-) Oh, that would be fun!
Trueeeee
I’d like to see Grant Cardone’s reaction to your reaction to Graham’s video.
...Posted on my finance channel. 😂
😂
I can tell you how that goes.... "You should never do a remodel like this.... eeeee...aaaaa.... 10X everything!! Invest in Cardone Capital! You can invest $1m and get $60,000 a month, thats just common sense. Cardone Capital, call in today Fund X closing today!"
I really love Kevin and Graham, their personalities are so opposite but it works lol. Both have given me so much knowledge. I am currently a 24 year old failure working at an $8 an hour job still living at home with no car and $2k in my bank account but one day I am hoping to do real estate flipping and investing once I have enough money to get started. So I am trying to learn now since I have nothing else to do.
Don’t worry! Gram is swimming in sweet sweet TH-cam money💰
If two people are in the bathroom at once smashing… the like button! Nice graham, real nice.
I freaking love this hahahaha
My man chandler! :D
Go checkout Chandler's channel too!
He’s awesome
Another slumlord and cheapskate this Chandler
Wow Graham really went bananas 🍌 I started my renovation beginning of December in a 1979 🏠 and it’s pretty much all done by the way we should close escrow on the February 25th, in the old homes the more you dig the more you find in my personal opinion specially for a rental dude it doesn’t make sense what Graham is doing
You are the Graham of real estate renovations.
Been binge watching all your videos. Hubby and I have offered on a home 270k that was originally zestimated at 319k. Woke up and saw it was at 298k....we are getting a little anxious because the property was built in 65 and literally EVERYTHING is from 65 (including carpets). Its a 3000 sq ft home and needs at LEAST 30k of work. Do you think we should run away or stick it out and get the home for 270k?
Plenty of gold in this video. You should go back out to the property Kevin. Two brains, better than one.
Kevin, can you explain your decision to invest in Redfin stock rather than Zillow?
how did no one comment about his oregon trail t shirt?!?!?!? so cool
Knob and tube wiring is the safest wiring system ever devised as far fire safety is concerned as as long as the proper sized breaker is protecting the wire and it is not exposed to shorting implements, even if the insulation falls off. The devises holding the wires are non flammable. House fires with knob and tube would only occur because of structural damage, shorting implements, or shunting fuses with pennies as people were want to do. Romex will burn in that case. Many top electricians have volunteered that over my years. I am 74. To me plastic wiring boxes are the weakest link in modern wiring because heat build up occurs mainly at connections and connections occur in boxes. Plastic melts and burns and steel does not. The heat build up in the wire itself is controlled by the breaker sized to the wire gauge. Heat build up in connections is caused by loose connections causing arcing (sparks) not over current. Even nails driven into walls with knob and tube are unlikely to short both wires because of their separation distance. Not so with Romex. Knob and tube is labor intensive and requires more expensive parts than modern wiring. Knob and tube also often used soldered connections reducing arcing. DON'T SHUNT YOUR FUSES WITH PENNIES!
Hey kevin, can you experiment with one of your rentals that are vacant and do a fun airbnb series on one of them.
"Graham's income is a little more substantial than a Red Robin income" haha you think
What is the jacket your wearing I want to buy one !!!
I’m almost 36 years old now and I’ve been remodeling since I was 16 years old for other people. I’ve worked for so many different companies I can say without a doubt that I do Top Notch work far beyond most remodel companies. It’s time to get my real estate license and start making myself money instead of someone else.
I thought for sure I had two audio sources playing when that music faded in around 6 minutes 😂
I KNEW THIS VIDEO WAS COMING.
Kevin! have you seen Matt Risingers latest on his "remodel" !! cant wait to see your reaction video!
The right approach is somewhere in-between the both of them. Change the layout but don't change anything else.
For 10k I’m remodeling a flip with LVP all throughout, wall tile in bathrooms, luxury hardware and new kitchen counter top just to make a few things. I’m getting close to a one thousand percent cash on cash return
I guess this shows the very different I investing strategies. Totally redo it once and make it as passive as possible, or just refresh it, and know you will have more ongoing maintenances and repair. Less money up front, but it’s less passive.
He also isn't hurting much due to the fact that the renovation videos are great TH-cam content. I'm not sure what he's made to date on the videos, but I'm sure that it's close to the cost of the electrical if not more. So in his case these "hang ups" are adding more value to the channel.
Answer this my irs check payment says my stimulus was deposited into a different account not belonging to me ?
It's nice of him to be generous with that property. It's also educational to see the ranges you can go on a property and what the results are. With the state the house is in, basically if you can afford it, you definitely go the Graham direction. That's a fire waiting to happen and the layout was just weird. You can do the lower cost remodel and you'll be fine for awhile, but eventually you're going to have to go the Graham direction. As long as your contractors are competent, doing it all at once rather than having to spend more time later is a better option. There's setup and take town time as well for contractors to get going. Getting them in, in one block of time is going to be the most efficient.
Honestly, I'd probably live in the place myself if I put that much into it. That's the fastest way to get the most value out of it. Paying a premium to have nice things makes sense if you're enjoying those nice things. In 3 to 5 years the stuff he puts in will still justify a premium rental value but the renter is getting it used and they won't care anyway. He could turn his current place into a rental that has a positive cash flow that would better subsidize the work he's doing than putting a renter in it that's barely breaking even and enjoying all the brand new stuff. He can also then take advantage of the tax benefits of having it as a primary residence before turning it into a rental. Better loan, keep more of the appreciation later, etc.
Not sure you’d ever have to go that big of a remodel - I definitely agree I’d live in it at first though!!! Like a new car! Use it, then give it to a taxi driver! Those tenants are going to get a steal
Kevin!!! you need to go save this poor man
Great video
i would only keep one facet and replace the other one with the toilet. i don't want to walk 6 metres to clean my hands.
put the washer and dryer where the toilet is or close it up and make a small safe room with entrence from closet.
Hey Kevin or Kevin's Fans. I'm a n00b. I'm looking into getting a Real Estate Licenses. I'm still learning about what it is and all that, but I essentially want to be selling homes making a profit. Is renting or flipping homes also part of the package if I get a Real Estate License or can I do that without it? Also, what are the benefits of having a real estate license and flipping homes?
I'm finishing my 1000 sqft basement and I'm spending $10K total, and that includes the permit, framing, electrical, plumbing for a new bath, flooring, doors, and hardware :D
I have a question: why do you focus on getting more properties at this point? Why not just add the money you were going to use to get a new property to help pay off some of your mortgages. I understand that it is amazing to have someone else pay your mortgage for you, but it would increase your cashflow just the same with less tenants to deal with.
I’m in the process of buying a house that was built in 1900. It’s knob and tune in some places, I’m kinda nervous 😟
Email me I have something for you Kevin@MeetKevin.com
(serious about knob and tube)
KEVIN NEEDS TO LEARN ALL ABOUT OXFORD HOUSES !!!! You working to hard !!!!! LOL !!!!!
When gram said smashing in the bathroom I cracked up but the he said the like button
He could have gotten 3k with zero reno. Ever seen LA rental biding wars? You open the door and 20 prospectives flood in, barely look it over, and in under 5 minutes everyone makes an offer. 30 minutes later it’s rented. That, or the showing is canceled because it’s rented before the showing ever happens. Cardboard boxes in the alley are going for $500 a month, no utilities... 😉
I like your approach of spending less but sometimes it is possible to knock out a single wall for $3000 and it can transform a floor plan and make a big difference to the rent. Like $500 a month extra as people pay extra for kitchen islands these days, well in some areas they do. I can completely appreciate where you are coming from with your line of thinking that it opens up a can of worms.
You are talking about two different philosophies of investing. It seems your primary value is to optimize the return on investment. Another approach might be to create a space to live that gives satisfaction in way that doesn't only pass grade but rather preforms like the product of an artist who delights in making something beautiful. Money can be wiped away by the vagaries of market economics. Beauty is forever.
Oregon Trail that brings back memories lol
Okay, I was a waitress in college for years. How does someone who works at Red Robin afford to buy a $300,000 property? Especially in CA where the taxes are outrageous? How could they even afford the down payment? Did he live with his parents? Even so.....I don’t get it?
Kevin you are the best please make more video daily
Thank you!!