Tarek El Moussa meets a lot of novice flippers who make big mistakes on his show “Flipping 101 with Tarek El Moussa.” But on the latest episode, he meets one couple who made what may be the biggest mistake of all.
In the Season 2 episode “Up Against a Brick Wall,” El Moussa meets Jun and Jessica, a married couple who are hoping to build their flipping business. These two bought a home in Carson, CA, for $510,000, but El Moussa quickly realizes that they’re facing some tight margins.
With a possibly illegal addition, an ugly kitchen, and only one bathroom, Jessica and Jun soon find out that their $40,000 renovation budget isn’t going to cut it. They need to focus on giving this home a top-notch, timeless design if they’re going to turn any profit at all.
Read on to find out which upgrades El Moussa thinks every house needs (particularly in the kitchen), with plenty of use-at-home tips.
Wood tones warm up a room
To open up the kitchen and living room, Jessica and Jun decide to knock down a wall and put in a beam. When El Moussa checks on their progress, he notices the beam sits pretty low and asks if that was intentional. It turns out, it was Jessica’s design choice.
“Since everything’s going to be light, I wanted to add, like, a little bit of warmth with the stained wood,” Jessica says.
Luckily, El Moussa likes the look, and when he brings his new wife, Heather Rae Young, to see the house, she approves of the beam as well as the wood accent on the hood vent. It’s a great example of how natural elements can help a house feel warm and homey.
Never, ever forget to include a dishwasher in the kitchen
Jun and Jessica want to give this kitchen a top-notch design, so they add a peninsula, white flat-panel cabinets, and even a large farmhouse sink. However, these two forget one big thing: a dishwasher!
El Moussa and Young don’t realize the dishwasher is missing until a potential buyer points it out—but by then it’s too late.
Jessica says she wasn’t able to fit a dishwasher into this space, but El Moussa seems to think she should have tried a little harder.
“You can’t sell a house without a dishwasher,” El Moussa says.
This brings up an important lesson: Buyers won’t care about a beautiful, high-end kitchen if the space isn’t functional (i.e., facilitate dishwashing).
Say no to trendy tile
While Jun focuses on the business end of this flip, Jessica works on the design. However, these two run into problems when Jun tries to throw his hat into the design ring.
With the renovation well on its way, El Moussa, Jun, and Jessica visit a tile store to pick out finishes. When Jun shows Jessica a backsplash tile sample, she rejects the style outright.
“That just looks, like, trendy,” she says of the square tile. “It’s not going to be cool in five years, and I’m not putting my stamp on it.”
Meanwhile, Jessica shows Jun and El Moussa a simple but elegant off-white tile that she knows will stand the test of time.
“I want the people to fall in love with their house and not have to remodel it five years down the line,” she says.
El Moussa points out that this tile is 30% more expensive than Jun’s choice, but since it’s not a large space, that works out to be only a few hundred bucks more. Jun agrees to go with Jessica’s tile, and in the end, the kitchen looks great. Jessica’s off-white tile is clean, beautiful, and timeless.
Jessica knows buyers will appreciate this tile because it’s simple and will work in this space for many years to come. It pays to not be swayed by trends.
Never put laundry machines in the living room
Claim your home to stay up-to-date of your home‘s value and equity.
When Jun and Jessica first show El Moussa the house, Jessica explains that she plans to use an old linen closet for the washer and dryer. El Moussa loves the idea.
“One of my favorite things to do, especially with smaller houses, is turn closets into stackable washer and dryer,” he says.
However, Jun and Jessica end up switching gears and putting the laundry in the second living room, at the back of the house.
When renovations are finished, this bonus space looks great. With bright walls and lots of windows, this is a great spot to entertain. However, as one potential buyer points out, it’s a little odd to have the laundry in this living space. Apparently, El Moussa’s choice of tucking it into the closet would have been the better move.
A new tub can quickly update a bathroom
Jun and Jessica have only one bathroom in the house, which El Moussa knows could scare some buyers away. He encourages the flippers to really invest in this bathroom and make it a feature that will impress buyers. This includes, much to Jun’s dismay, changing out the 1950s tub. While Jun planned to simply reglaze the tub, El Moussa insists on replacing it entirely.
“This can’t stay,” he says. “This is an eyesore. Like, look at the shape of it, the size of it, it takes up half the bathroom.”
While reglazing costs $250, a new tub would cost only $50 more, at $300. Of course, Jun and Jessica agree to switch out the tub, and they get a much more modern, more stylish model.
When the bathroom is done, the new tub makes the space much more usable and modern.
Don’t skimp on basic landscaping
Jun and Jessica’s property has a large backyard, but once these two finish the house, the yard still isn’t impressive. With sod in the middle of the yard and mulch on two sides, it looks odd and unfinished.
“The sod’s fine, but they put mulch everywhere else and it’s just, it just doesn’t look good,” El Moussa tells Young when they tour the house together.
To make matters worse, weeds are popping up through the mulch, making the whole yard look untidy. It’s also a good reminder to always invest in weedkiller before an open house!
Do these two pass ‘Flipping 101’?
After buying this home for $510,000, Jun and Jessica go way over their original $40,000 renovation budget, putting $65,000 into the home. With $15,000 in interest and $20,000 set aside for closing costs, these novice flippers have a break-even price of $610,000.
Luckily, a buyer is willing to overlook the odd backyard landscaping and the dishwasher-less kitchen, making an offer for $680,000. That’s a $70,000 profit, meaning El Moussa’s teachings have paid off!
