Latest / The Investor Shed Podcast / Made $75K Flipping This House in Post Falls | Full Breakdown & Tour

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Made $75K Flipping This House in Post Falls | Full Breakdown & Tour · The Investor Shed Podcast

• speaker-1: hey, welcome back to the Investor Shed Podcast. I'm Nick Beverge, your host here with Jeremy Kitchen. Good morning. Hey. speaker-0: welcome everybody in investor shed land out there on Facebook, Twitch. We're live on Twitter. speaker-1: Twitch. We're not live on Twitch. We're not live on anything today. Yeah. Sorry. We're not doing live. We are filming ⁓ well we are live right now at the Stephanie Flip fix and flip part two. Yeah. It's finished. It's finished. It looks speaker-0: Really good too. ⁓ we'll probably do a tour when we're done, but we wanted to do a part two on this basically to kind of talk about what Nick actually spent on the property, ⁓ what he found that worked, and if you would do something like this again and just kind of go through a ⁓ an analysis of the property. speaker-1: Yeah, we're doing an actual case study. So the first time we were in the fix and flip just before it kind of really started, right? Yeah. Like there were still garbage bags everywhere and stuff like that. And it was like it was demo time and we had the tr ⁓ the dump trailer ready to load up and ⁓ and we got right to a podcast instead. Yeah. speaker-0: And instead of doing any work we decided to record. So speaker-1: But it we it was pr kind of a cool thing 'cause ⁓ in that first episode, if you haven't seen it, I would recommend going back and checking that one out before you watch this all the way. ⁓ but I kinda give you my idea of what ⁓ you know, what I bought it for, what I plan to do with it, what I plan to list it for, and how much I plan to make. Yeah. ⁓ and we'll ⁓ and if you want to compare that episode with now the rehab is finished and it should be under contract today. ⁓ you can see how much I got right, how much I got wrong. Yeah. speaker-0: Let's talk about it. So just kind of give a quick recap. ⁓ what'd you purchase it for and you purchased it through what means? Can we kind of just run through that? speaker-1: Yeah, quick. ⁓ so it is a single family house in Pulse Falls. ⁓ I bought it for three hundred and thirty-five thousand dollars. Yeah. ⁓ I got it from a wholesaler ⁓ who had it under contract for ⁓ a really good deal, two hundred and ninety-seven thousand five hundred. Okay, cool. So they actually made like thirty seven thousand five hundred dollars ⁓ flipping it to me. ⁓ but you know, they did a lot of they spent a lot of money on marketing, they talked to a lot of people, they tried to get great deals under contract once they find they're allowed to make as much money as they want to. Yeah. speaker-0: We've talked about that before. Like I don't care how much money you make on the back end as long as they can make a hundred thousand dollars. They could make more than you and like great man, cool. speaker-1: care about how much am I gonna make. Does it make sense for me? If the numbers work for me. Yeah. I'm I'm in. I don't care. And I've been in that situation before where one flip I bought last year, the guy made like seventy five thousand dollar wholesale fee. Yeah. And I made about the same amount of money flipping. That's still one business. So there was a lot of meat on the boat on that one and he deserved every bit of that. Sure. So Yeah. speaker-0: So that's pretty good. properties for sure. speaker-1: So ⁓ anyway, bought it for three thirty five. I got a hard money loan. Okay. ⁓ I ended up putting down my ⁓ about thirty I had it right here. ⁓ three thousand six hundred and ninety dollars is how much I had to bring to the closing. ⁓ so that was to cover ⁓ just some closing costs and stuff. ⁓ I ended up getting speaker-0: Like your down payment to the hard money lender? speaker-1: Yeah, so that included the down payment and everything. Good. ⁓ speaker-0: Pretty good. Do you cross-collateralize anything with this one? speaker-1: Okay, so I have a r I had a rental property, I forgot which one I use, but I use one of my rentals as cross collaterals. ⁓ so one of my rentals not necessarily paid off, sure, but it just has one lien and a lot of equity. Right. ⁓ so w he was able to just tag on like let's let's claim a hundred thousand dollars from one of your rentals as just extra security in case we ever need it. In case we ever had to foreclose on me here on this house and they were still underwater. Right. And they're still not making their money back, they can still tap into some other equity and force a sell there. Just like ⁓ collateral Yeah. speaker-0: cool how you can do that. You're able to use speaker-1: ⁓ and that's the cool thing about real estate. I mean you can be very creative. and some people who don't invest in real estate regularly might argue that ⁓ you got all this trapped equity and you're not utilizing it like you can still be creative and use user equity and make even more returns than just your rentals. Yeah. speaker-0: I was listening listening to ⁓ diary of a CEO the other day and he had some guy on, I can't remember his name, so I'm not good at citing this. Uh-huh. But he's basically talking about how stock market is better than real estate and like how you should dump all of your portfolio into stocks because real estate isn't liquid. And I'm like, I don't think you know how that like really works. Everyone I know with real estate is like super they're not liquid, but they're able to capitalize and utilize this property for other things. speaker-1: And that is probably great advice for the right people. Yeah. Exactly. ⁓ there's a lot of people, most people I've learned over the years get very overwhelmed by little things and don't like to operate and don't like to work. Yeah. It's true. Stock market's perfect for that. Yeah, absolutely. Stock market investing, you push buttons and wait. We do that too. with real estate, I mean it's a lot you know how many times I've been to this property in the last three months? speaker-0: That's speaker-1: I don't even know. Yeah, I was like I have no idea. it was definitely part time. I wasn't here f working a lot, but I've been I've mowed the yard now three or four times. Yeah. Well you well you hired contractors out too. Didn't assist. I didn't Yep. Yep. And then I was here during the whole demo process pretty much and just loading up the dump trailer and taking it to the speaker-0: But you materials right and speaker-1: It's a great way to save money and it's a great way to learn about your property. Yeah. Like what exactly am I gonna do to this? And that's why I'm a big fan of hey, if you if you do wanna still leverage as much of the property out to contractors as possible but still wanna save money, y the the money is investing your time and efforts and energy into the demo so that you can learn as much about the house and get a good plan. Yeah. I think it's a really good idea. And then ⁓ when you're Because when you're pulling stuff out of the house, not only do you stumble upon treasures and stuff you can resell. Yeah. Which there was plenty of that in this house. ⁓ but you just start learning, ⁓ okay, like this is actually damaged, so I'm gonna have to fix that, I'm gonna have to do this, I'm gonna have to I can actually save this. ⁓ I was planning on redoing this whole fence. It's actually not bad. I just had to l pull a couple layers of moss away. Yeah, yeah. Or whatever whatever the deal is. So speaker-0: pulling stuff apart is when you get to learn about what Real quick on the treasures, ⁓ did you guys do like a garage sale or something here to get rid of a lot of this? speaker-1: stuff? so there were a few different I mean I I would just post stuff to Facebook market. So like there is ⁓ car parts that I I was posting and just and it was very like guys I I would only I would I do not ask for much money right on these things I kind of get with saves. ⁓ it's pretty cool to just like put something out there that you're just gonna take to the dump anyway and ask for twenty bucks and not even meet anybody here and just like trust that they're gonna take it and leave money under your mat. Right. And they always do. Right. speaker-0: Yeah, that's an easy. speaker-1: so that's what I do with people. I just like, ⁓ I'm gonna leave it in the driveway for you. Yeah. ⁓ I won't be there, but just leave the money under under the front mat. Something that's worked out almost always. ⁓ yeah. speaker-0: Facebook Marketplace is wild, man. I saw something just a side conversation, like I was scrolling Facebook this morning, and someone was asking about selling stuff. And they said like just put it up on Facebook Market, somebody will buy it. Somebody came by and bought a used four by four that was stuck in concrete. And people were like lining up to get this four by four. speaker-1: I could get that cli there's a lot of creative people that like to buy stuff on Facebook marketplace and that's where they spend their time. It's like pulling out any pennies that might possibly be speaker-0: I had ten calls about a four by four stuck in concrete and people were just like, I'll come get it. Ten bucks, I'll come get it. Yeah. speaker-1: Yeah. Engine parts and stuff that let the the dump might be like, ⁓ you can't you gotta bring you know, you gotta pay to dispose of that. Yep. ⁓ or somebody can pay you to take it away. Yeah. So you gotta just use the apps that you have. Facebook Marketplace is so easy to use. speaker-0: you're doing free stuff and getting giving away free stuff, like that still saves you time and effort from going so like speaker-1: Yeah. And just kind of a win. Little side note too, if you haven't ever posted anything on Facebook Marketplace, there's now even I used to use ChatGBT to like I just put an image of whatever I wanted to sell into ChatGBT or something. Yeah. And say, hey, I I want to sell this on Facebook. Tell me about how much I can sell for and write the post. Cool. ⁓ and it would do it all. Now now Facebook just has that built in. That's awesome. So you can just like click a little AI button and it recommends what you should price it at and knows exactly what it is and and it's like a quick I need to sell one. speaker-0: I need to get rid of more stuff. speaker-1: That's that's great. Cool. ⁓ so anyway, that's the easy fun part. And then what happens is reality kicks in that you've now spent a week or two at this house and it's huge. There's a lot to do and you've barely scratched the surface. That's common. And ⁓ so that's that's one I typically resort to. ⁓ then I start making calls and having everybody else do everything. Yeah. All the flip speaker-0: We've worked on. I think I recommend I re recognize that pattern too. Like you get everything opened up, you get all the demo done, but then you're like, there's a lot of work to do here. speaker-1: And at the same time it always happens where ⁓ my phone's ringing off the hook with other opportunities of like, you know, I gotta go show houses or list houses or like you know, go work with clients and I really need to utilize people that wanna make the money sure to work on this. But it's also speaker-0: I think like the the law of the universe says like if you get yourself busy, you will become more busy. You know what I mean? Like busy people remain busy. And that's how it is like when I'm like in the zone in my work, like people just can't speaker-1: Yeah. And you can accomplish a lot. Yeah. Yeah, I can do that. Yeah, I can do that. Yeah I can do that. I don't know. Somehow we make it work. Yep. For the most part. speaker-0: Way to work, man. Yeah. So you bought the house for thirty six hundred dollars, that's your purchases. We're looking at is ⁓ QuickBooks right now, which is you got thirty six hundred down payment. Yeah. speaker-1: Thirty six hundred dollar down payment. Yeah. So I got a loan for three hundred and fifty thousand dollars. speaker-0: thirty five thousand dollar property. speaker-1: Cool. So what I had built in was six months of interest. Okay. Okay. ⁓ into that loan. So on top of the, you know, if you take three fifty minus ⁓ three thirty five, what is that? Fifteen thousand dollars plus another there's another thirty six hundred dollars due. I think they sent like seventeen thousand or something. Okay. For a few months of payments. It's three thousand a month, so ⁓ let's see, that should be ⁓ yeah, yeah, right about there. If if I let it go a full six months, yeah, it it would cost ⁓ roughly what, three $35,000 divided by two. Yes, $17,000 ish. Yeah, so I think that's how much money went to escrow. Yeah. ⁓ so I didn't get to see that money. It just went to the t the escrow company that is making the payments. So they're they already have accounts. We painted the payment of the accounts in advance. So basically have till July ⁓ to sell this property before I have to make one payment out of pocket of twenty-nine hundred dollars. Yeah. speaker-0: The payment account. speaker-1: ⁓ a month. speaker-0: Your payment on this one with the hard money loan is three thousand dollars a month. What's crazy is like that's a hundred dollars a day just to hold this property. speaker-1: Yeah. And and that's with the important thing about fix and flips that most peop some people don't consider if they are highly leveraged, yeah, like I have been, and and you get which is fine. Yeah. Because they got a great deal. Yeah. But it it can be very expensive every day. So if you want to be the one that does everything to try to save money, think about that. You're probably not. Yeah. Because the amount of money that you're going to pay in interest extra versus having other people yeah around you working too, ⁓ the math just makes sense to hire as much of it out as possible. speaker-0: I have been on the beach. speaker-1: When you are highly leveraged with a hard money loan. Yeah. speaker-0: I think it works in other cases too, not just when you're highly leveraged, Nick. Honestly, like if if you don't have the skills or the time or the capacity to do this, you should probably hire it. speaker-1: Now that i it comes with a caveat too because you can't just say, Well, I'm just gonna save money by hiring everything out. Right. To the right people, you can't just pay whatever because there are plenty of contractors that ⁓ they're in gouging season, you know? And ⁓ you gotta sho you gotta either know who you're dealing with, kind of anticipate what to pay ⁓ and and if you get bids back that are double what should be correct, get multiple bids. Like don't just don't just be like, Well, I I have to s I have to be efficient, so I'm just gonna say speaker-0: Multiple. speaker-1: To every bid that comes back. Sure. ⁓ shop it, make sure that people aren't gouging you. Try to get an i a good idea of what people are charging and just go with it. If you're newer, ⁓ at least three ⁓ per item that you are it per big item, you know, anything speaker-0: bids should you get on a fix and flip? Electrical will get three bids on the speaker-1: Yeah, anything over like twenty five hundred bucks. Sure. That like of work. You should probably get two bids or so. Anything over five thousand you should probably get three. Okay. ⁓ just just try to set yourself some pr parameters so you don't have to like guess and just have some right operating principles to work off of. Yeah. ⁓ these days I I don't get any extra bids 'cause I already know who and if speaker-0: Pretty good contractor team. Pretty contractor. speaker-1: ⁓ I would get another bid though if somebody sends me something ⁓ that just seems a little too high. Sure. But like on this property, it was about what I anticipated. speaker-0: When you're looking at bids, do you instantly go for the cheapest person? I didn't think so. Cheap isn't always great. Great isn't always cheap. ⁓ it's there. speaker-1: No. Yeah, mm mm. Yeah, it de but there's a there's a yeah. ⁓ I g quality's important to me these days and it depends on the property too. Sure. ⁓ but yeah, you shouldn't always go with the cheapest. ⁓ go with the one that's probably the most medium. If you're new at this you got three. ⁓ the person in the middle with someone that you can know, like and trust, or someone that you get a good gut feeling from. Yeah. ⁓ your gut can tell you a lot. It can. ⁓ so just follow your gut with this stuff. It's probably with some people they may hear this and be like, that's not how you do things. Right. I've been doing this long enough to know that your gut's right ninety five percent of the time. Sure. ⁓ so speaker-0: Then your logical through your illogical brain, you know what I mean? speaker-1: Yeah, 'cause your gut is like figuring in it's got the ultimate algorithm where it's figuring in all your past experiences and everything and it's got a great bullshit meter. it does. ⁓ and sometimes your brain can't catch up with as fast as how your as fast as your gut can move. ⁓ I bought it in February. Okay, early February of this year is when we closed. speaker-0: So when did you buy this property again? So for anyone listening, because this is obviously not live today, that today is June first. So you bought it early February, it's now June first. You've been complete for like two, three. speaker-1: And I didn't get to start on it for so I anticipated not starting until ⁓ March. Okay. Because the the owner had one month to move out after we closed. So I had to figure, you know, another three thousand dollars of holding costs and just waiting. ⁓ the cool thing is that they moved out after like ten or thirteen days. Okay, cool. ⁓ so we got to start on the property earlier. I just happened to be in Mexico when we got access to the property. So we didn't start till like kind of the third week of February or so. speaker-0: So obviously like late February, 'cause February's a small month. So then you got, you know, March, April, and May. Basically three months to renovate this, right? Yeah. speaker-1: And we finished ⁓ in mid May. So it took almost three months. That's pretty good. Almost three months for a twenty seven hundred square foot home where we did a complete cosmetic job, but we also built out the basement. Yeah. Basement looks great by the way. Yeah. speaker-0: We'll go, like I said, we'll do a tour of the property, but we just kind of wanted to kind of get some ins and outs of what actually happened. Three months to flip a property feels like a pretty good timeline. speaker-1: It's okay. You know, like if you watch H D T V shows and stuff, you know, five or six weeks probably sounds more regular. Right. but the reality is I just ⁓ I just I took my time a little bit more just because I wanted to not overdo it with too many subs. I actually only had for subs. ⁓ well I had one one handyman to start with, which was Joey. So he started with all the rough and work down in the basement like building like framing and stuff and pulling electrical and that kind of stuff. Okay. ⁓ I did not get, you know, ⁓ don't take my ⁓ don't take ⁓ my advice for everything. I did not get permits on this house. ⁓ it's a risk I took and I did disclose it too. I in this in this market that we're in and in this culture, it's not a big deal. In some other parts of the country it might be a huge deal. Right. North Idaho, people don't give a shit. Most people don't give a shit. It's like eighty percent speaker-0: North Idaho now. That might not live on forever, but right now it's pretty okay. speaker-1: Okay. You just do we just do things to code. Yeah. ⁓ and we try to skip all the ⁓ hassle of dealing with a a permanent permitting price. speaker-0: How long do you think the the permitting process and getting that all taken care of would have added to your flip? Yeah, how much money do you think that would have like added? I mean obviously a hundred bucks a with holding customers. speaker-1: Probably three weeks and some weeks. A thousand bucks or so. ⁓ a and and fees. Yeah yeah. Probably a thousand bucks or so to finish out the basement. Okay. And ⁓ and probably added w an extra three weeks of just waiting for an interpr inspector to come and all that stuff. speaker-0: Is that something that is it pretty typical with other flippers in the area? I mean like you can st you can see in the MLS where it says, you know, not permitted, right? You do disclose the stuff. speaker-1: Yeah, it depends on how extensive the work is, where it is is. I've I've definitely pulled permits. Like if I'm down closer to Quarter Lane and we're doing a full remodel or we're replacing a roof, like use some common sense. Don't get red tag that easy. ⁓ but it depends on where you are too. If it's a rural property, hardly ever we get permits, but yeah. ⁓ you should get your permits. But I'm just telling you for my specific location and the risk I'm willing to take, I was fine. Yeah. ⁓ worse that could happen, somebody drive by that red tag it, then I speaker-0: Yeah. speaker-1: go and I fix the issue and we get permits and we just yeah work backwards for a little bit. Yep. It's a risk I was willing to take. Sure. That's it. Yeah. Not necessarily good advice. Yeah. It's just I'm just being full disclosure here what I speaker-0: Yeah, exactly. And and I I think, you know, a lot of flippers it's not like I wouldn't even consider that cut cutting a corner, it's just avoiding an inevitable. You know what I mean? Like if speaker-1: It's it's a little corner cutting, sure. Yeah. Like we just call it what it is. Sure. ⁓ but I can tell you, honestly, we didn't cut any actual corners of the construction. Yeah. ⁓ pe we just did everything to code. Right. ⁓ but just didn't want to deal with the bullshit of the government. speaker-0: How do you know how do you know you did it to code? speaker-1: because I was able to see it. Okay. And we've done this enough to know. Okay. It it was pretty simple. I mean we're just we're it it was ⁓ because the doors fit. Okay. That's how we know. speaker-0: Didn't take care of every all the pieces. speaker-1: Together and and the electrical works. Okay. And the and the plumbing works fine. Okay. And all that. ⁓ because we use materials from Home Depot and Lowe's. Sure. That that all meet standard code. Yeah. ⁓ the materials we used fit the puzzle. Yes. And ⁓ that that's how I know we did it to code. And and the house was only built twenty years ago. Sure. So Yeah, there's one there's not a lot of weird retrofitting that we had to do. ⁓ you know, if we if we expose, ⁓ these this pipe's no longer co code, but this like there just really wasn't any of that. Sure. I don't know if that makes sense. It makes sense. speaker-0: So it's kind of diving back into this real quick. Obviously with the down payment, you said you spent almost thirty seven hundred dollars. ⁓ you had all of your payments going to escrow so you're not paying making payments on the property. I'm seeing this big number here. Yeah. Can we talk about that big number that's ⁓ negative seventy-three thousand four hundred and eighteen and forty-two dollars? speaker-1: Yeah, so that was the ⁓ improvement cost plus some utility payments and stuff like that. Okay. ⁓ so that's how much I ended up spending. speaker-0: That's out of your own pocket like at the moment. speaker-1: So that's my out of pocket. Yeah. Seventy three thousand four hundred and eighteen dollars. ⁓ and that was put on credit cards, some of it was cash. Yeah, yeah. It was all over the place. Okay. I so that's that's how I run my business. Right. I'll just use yeah. I like with the contractors that I had here the for the roughing process, th they each got my Robin Hood card. Right, right. ⁓ and then like when when Joey had to leave, he gave him back the card receipts and then I handed the card off to Blake and he finished the house. Sure, sure with whatever. speaker-0: So total numbers here, and I'm just gonna do some rough numbers of course. So you got the learned for three hundred and fifty, you're negative seventy-three, so let's just call that seventy-five for easy math. Uh-huh. Right. So right now, like all in, you're four twenty-five. Does that sound about right? speaker-1: Yeah. Okay. It does. Okay. ⁓ now there's still other ⁓ closing costs and stuff that's figured in. Now here here's if we estimate, you know, if I have a random another five thousand dollars that I have to spend on this house before we close by the end of the month, I have this baked in. Yeah. And actually you know what? I'm sorry. I've gotta change this because we just had we had a contract and then they backed out. Okay. ⁓ I did not sell it for five point four million. speaker-0: That's a pretty good ROI. speaker-1: One more. Yeah. ⁓ so anyway, I I'm updating my spreadsheet as we as we go here. I I should I should make ⁓ we'll just cut to the chase. Yeah. ⁓ I should make about seventy thousand dollars in profit on this house. Cool. Okay. ⁓ how much time I spent here? ⁓ I would say probably f probably fifty hours at least. Yeah. Four somewhere between forty and eighty. What's your time? I don't know. I don't really I don't think of it like I'm an attorney. Sure. I just I have fun. You know, if I if I valued my time that much I wouldn't be mowing the lawn on the weekends here and stuff. Sure, it's true. I just like to keep busy. ⁓ and most of the time that I've spent here it's I don't really have anything going on at the office. ⁓ or I don't wanna lay around on the weekend. Yeah, that's good and watch a movie. So I'll just go try to stay busy here. Yeah. I don't speaker-0: busy guys man like a lot of relaxing speaker-1: Yeah, so I don't really think about what's my time worth. Yeah. ⁓ I can tell you by the end of the year, I think I'll I'll I'll make ⁓ I I'll make close to eight hundred grand this year. Cool. ⁓ so if you want to take that and divide it by my work hours. Yeah. ⁓ is that how much my time's worth? No, because I probably won't make that next year. Right. Who knows? Right, right. My my my income is ver it's whatever it is. Yeah. speaker-0: Yeah, I'll just ask you know, like if you value your time in a certain X, you know what I mean? speaker-1: Yeah. I do I do value my time but not like a narcissist. Sure. and I I just I value my experiences I guess a little bit more. Like what do I want how do I want to spend my time versus do I feel like this is where I'm gonna make the most cash? Right. speaker-0: And and and I hear you, like there are there like with with my stuff specifically, like I value my time. I I don't have a good number, but it's over a hundred bucks an hour. Like if I'm working, that's what I want to be making, right? So to have somebody mow my lawn for twenty bucks is kind of a no-brainer for me. Right. speaker-1: And it should be a no-brainer for me to just hire somebody else to do the ⁓ you know when I I load I mowed two lawns this week. speaker-0: That that's okay though. It's like you said though, you like to be busy and it's funny. speaker-1: busy. Yeah. And ⁓ part of my ⁓ workout regimen is like I need to get fifteen Yeah, I change it to fifteen minutes. And I've been always getting more than that. But I do my morning workout, which is at least forty five minutes to an hour. And then in the afternoon I do fifteen minutes outdoor walking. Another forty five minutes. Okay or so. So you're speaker-0: What's it supposed to be? Five hard with like an asterisk? speaker-1: Well, so here's the deal. I can do whatever I want as long as I'm not posting it on social media. Yeah. Like, ⁓ I'm doing the seventy five heart. I don't have to tell anybody that. Pretty much doing those things. Yeah. ⁓ Yes. Okay. Fine. That's all. Checking in every hour. That's awesome. ⁓ if if she doesn't hear from me, she checks in every hour. But it's still speaker-0: AI Ronda Trainer. I like you are doing your own rendition of 75 hard, which I think is great. ⁓ it doesn't have to be by the books. Just do a thing that's doing more than you normally would, and I think you'll see progress at that point. Okay, so you're estimating making 77, it looks like here. speaker-1: Sure, yeah, yeah, yeah. Cool. Yeah, that's what that's what this one is looking like it's gonna mm. That's that's how it's gonna end up. Cool. ⁓ speaker-0: So you basically fed a machine seventy five thousand dollars. Like you just hit a blackjack basically, but you doubled down on your blackjack. speaker-1: And and h hypothetical That's a good way to put it. Yeah. Yeah, my cash on cash returns. Yeah. It was a hundred percent. ⁓ not bad. Now, ⁓ it's not a traditional investment because it's it was a fix and flip. Right. You know, some people say that like real estate investing is not fixing and flipping houses because that's more of a job. Right. It's speculative. and they are mostly right. ⁓ it's just because it investing should be more passive. And it could be more passive. Sure. ⁓ and it's not not guarantee you're not guaranteed to make anything ever. ⁓ but I would I guarantee speaker-0: disagree, but you're not you're not trying to make anything on a on a fi on a fine hold either, you know what I mean? Like speaker-1: But I think people that say that probably haven't flipped a lot of houses. I flipped a lot of houses, I see them as investments because I've seen the majority of them make a lot more money than Robin Hood investments I've made. Right. Or things like that. And I can and I can choose to be as involved as I want to. Yeah, yeah. I can make it as passive as I want to. Last year, twenty twenty five, mm-hmm, ⁓ I flipped six or seven homes. Yep. And ⁓ I only really kind of worked on one of them. Okay, cool. ⁓ for like a week. Yeah. ⁓ I was very passive and made a made a lot of money. Not a lot, but I think around two hundred and fifty grand in net profits between those ⁓ by doing the least amount of work possible. That's awesome. Where I just was bringing staging furniture in and out. Right. speaker-0: I I happen to agree with you, Mick. I think I think fixing and flipping houses I I consider it investing in real estate because you are still like investing in real estate. You are the money goes into real estate. It's just short term. You're just doing option trading rather than like long term holding with real estate. speaker-1: Yeah, I invested my money in other people's money. ⁓ with that with the option you're anytime you ever buy options you can lose all your money. Right, right. And that's true in real estate too. You can buy options to purchase a real estate and if you don't exercise that option you can lose your money. speaker-0: You could have absolutely lost your trail tail. Sure. You could have over renovated, you could have held it longer, you could have just done things wrong and had to redo them. Like you could have hired the wrong you've seen real estate not work out in a lot of different ways, but the fact that you are made able to make it work is really cool. I was gonna go somewhere with this. So with the 75, obviously we're talking about you know buy and holds versus flips for just a second. ⁓ if you were to keep this as a buy and hold, what would obviously you've got $75,000 of equity right now. speaker-1: What would that look like? 'Cause sure. Yeah. So that's a good question. Yeah. So, here here's what it would look like. This house is looks great. Yeah, it does. It's a big house. Five bedrooms, three baths, and we will walk you around before we're done. ⁓ and this can probably rent out pretty quick for probably three grand a month. Okay. ⁓ this property costs me right now about thirty three hundred dollars a month to sit on. To sit, yeah, yeah. ⁓ speaker-0: draw on a higher interest rate than you would be on a conventional loan so we have to take that speaker-1: And I've already invested about seventy five thousand of my own for cash too. ⁓ so and not including that fifty hours of my time. Right. So what would this look like as a long term rental? That's the reality. Yeah. Because it won't cash flow. Right. ⁓ That's speaker-0: Sure. Right. That's where I wanted to go with this. Like I wanted you to get to this point. Because like this is an investment. The investment is this. The investment is not a long-term thing. Because speaker-1: Now, time does cure everything. Right. over if I just held this as an investment, I would lose money for probably the first five to ten years. Sure. ⁓ maybe five, five years. Yeah. What do you think this speaker-0: rent for just your speaker-1: ⁓ three grand or so. Yep. Now I do believe ten years from now what inflation's gonna get continue to just be out of control. Sure. ⁓ that's just my belief because that's just the way history's run and and the way our money system and our debt and the big beautiful bill and all that stuff, it doesn't make sense that we won't continue to have more and more inflation. Right. ⁓ so over time, ten years from now, if I just held on to this and then sometime ⁓ refinanced it, never pulled my cash out, ⁓ ⁓ yeah, this could be an an excellent long term investment. But I think I can take the seventy tho get my seventy thousand, seventy five thousand back, get another seventy five thousand, invest that somewhere else, and I feel like I'll make more returns than just sitting on this for a while and going to have to 'cause r now I didn't invest my own cash either. Yep. I invested credit cards and stuff. Yeah. So I would have so I'm also paying, let's say, an average of twenty percent interest. Sounds average. on that other seventy five thousand. Yep. So it's even more negative for a long time. Yeah. So I would just have to go out there and work really hard to support this family that's living in this house. And then the water heater is gonna go out next month. Yeah. That's true. Maybe or next year or what you know at some point. Yeah. ⁓ the roof is gonna have to be redone ten years from now maybe. So like I said speaker-0: You're offering like four 425 right now, so you'd have to get a loan for 425 to cover that. speaker-1: ⁓ yeah, I'd have to refinance out of this this interest only loan that is that is due here in about six months. Right. And I'll ⁓ and the but the cool thing is if I just flip it right now, ⁓ every offer I've had is pretty much closing towards the end of June. Guess when my first payment is due? Yeah, sometime in early July. Like July seventh or something like that. Just makes sense. So I'm gonna be able to sell most likely, ⁓ may not maybe not, but most likely I'm gonna be able to sell this house and never have to make an an additional one payment on it. Yeah. Get all my cash back plus another seventy five and I'll just take that and I'll ⁓ roll it into the next project. Yeah. Well speaker-0: would have made this a good rental versus a good fix and flip. speaker-1: What would have made this a great rental is if it rented for more. Yeah, okay. Yeah. But it w but I can't control that. speaker-0: And I'm sure when you when you buy the And I'm sure when you buy the property you're like, you know, you're analyzing how it can go both ways, right? You've got your both exit strategies, but like flipping tends to make sense. speaker-1: Okay. I'm thinking too little. Okay. Here yeah. Here's what could have made this work as a rental. ⁓ we just we put five bedrooms in this house. Mm-hmm. It's got a big downstairs that we'll see. Yeah. It's on a corner lot. Yep. Three car garage. Lots of parking. Mm-hmm. Co living. It's true. ⁓ you can probably get a thousand bucks a bedroom. Mm-hmm. speaker-0: Trying to get it speaker-1: There's five thousand dollars worth of gross rental income you can get. Right. Pretty easily right there. Payment's thirty two hundred bucks. Try to ⁓ and then let's figure in that seventy-five thousand, there's another thousand there. So now you're cash flowing a thousand dollars. Co living. Could have been a great co-living property. Yeah. Heavy management. Yep. But There's there's you you are correct by asking, but what could you do? Yeah. I guess you can always do something. That's not I wouldn't say that's speaker-0: Yeah, there's always something, but like that's don't want to know your real house. You know what I mean? What's that? I s I wouldn't say like co living is your real house. speaker-1: It's not my wheelhouse, but it is possible. Yeah, If I wanted to make that my wheelhouse, if I wanted to just do it, ⁓ and and I really wanted to hold on to this property, th that could be this could be a great candidate for a cold living house because a lot of bedrooms, it's big, it's on a quarter lot, a lot of garage space, a lot of driveway space, and you got this huge section of the street that you can park on too. Yeah. And you're in a neighborhood where you're not really gonna do anything about it. Yeah. Well you've speaker-0: got your other property on ⁓ your Frankenstein property is that's kind of technically it's not co-living they all have their own units would you ever do a co-living situation? Any property like if if if th if this made sense or it made sense for you financially, would you consider co-living? speaker-1: four separate units. Okay, yeah, yeah. On that property or so I wouldn't roll it out completely, but I have no interest in that. That's kinda I know it's possible, but Yeah, I just don't want to ⁓ you know, I what I love about long term rentals is seeing the cash come into my bank account and not having to deal with anybody's no bullshit ever. Yeah. And my manager takes care of stuff. That's what I like about private funding by the way. speaker-0: So Like what you described is exactly what I love. I give you money, you give me more money back every month. speaker-1: I got a call this morning from my property manager that runs my R V park. Okay. Guess what happened to one of my tenants? What happened? He shot himself. At over the weekend. At the property. Killed himself. At your property. At my property. I found that out this morning. Cool. ⁓ I didn't have to be the one to stumble upon that. Yeah. I didn't have to be the one to dispose of this trailer. Yeah. Or anything like that. A little too soon. But yeah. ⁓ he had a nightmarish weekend. He's a property manager. Crazy. Dealing with he's dealing with that and I I feel bad for him. But I feel also thankful that I don't have to put up I don't I don't have to be in that situation on a regular basis where there's you're you're dealing with all these problems nonstop. That's all you deal with. You don't deal with good stuff constantly. You know your tenants don't call you and be like, Guess what? Yeah my speaker-0: Yeah. speaker-1: Daughter graduated. It's guess what? My daughter hung herself in the basement. And we need you to do something about it. Guess what speaker-0: Hey, we slipped an extra hundred dollars into your rent as a thank you to your ⁓ to our landlord. They don't call with. No, that's really unfortunate, man. That's ⁓ speaker-1: It's incredibly unfortunate. I mean it's just I and I don't know how to deal with that. Yeah. ⁓ other than just thanks for letting me know. I appreciate it. Sorry you had to go through with that. Yeah. Let me know if there's anything I can do to help. He's like, we got it all taken care of, just so you should know. ⁓ you don't expect rent from that guy. Mike, ⁓ good point. Okay. I'll make that I will make that note. He's like, but I do have the spot already rented for somebody else once we get his trailer up. Like, cool. So good job. Good job, Bill. I've got speaker-0: questions obviously and I don't think like I don't know if all these are like what we should be talking about on air, but like were the other tenants of the park, they obviously know that gunshot went off and something happened. speaker-1: a g happened. Nobody ever nobody heard it 'cause it happened like a day or two before okay. They found his body. Gotcha. It happened in his in his trailer. Wow. ⁓ so yeah, they're not sure. Wow. Crazy. Okay. Yeah. But there was ⁓ speaker-0: mind I'd have no more questions. Yeah. speaker-1: has like apparently the his parents didn't want him having a gun and he had to and he was involved trying to remove a gun from him in the past or ⁓ there is some history there so it wasn't shocking. Okay. Wow. ⁓ yeah. Set it's sad. Yeah, it is said. But we're we're talking about this foot. Yeah. We don't want to tear everybody's weekend apart. I I would say speaker-0: say like this is more this is more common than like people think. Like problems do happen on properties. It does happen and it's just something you have to be aware of. Business as usual unfortunately like the the world keeps turning but it's sad. speaker-1: It's yeah. But just yet another reason why I just I want nothing to do with property management. Yeah. But everything to do with owning rentals if it makes sense, if it cash flows. Sure. ⁓ because there'll be other people that'll step up and take those positions that you don't want to do. Yeah. You pay ⁓ enough money. speaker-0: Yeah. Money solves a lot of problems for sure. All right. So just back into this deal and obviously, you know, at the end of the day you're probably gonna come home with seventy five thousand dollars for what was it, three months work plus a little bit of legwork, you know, mowing and doing a couple of things. speaker-1: This is gonna be Yeah. Now to be real honest, ⁓ how much actual effort I put into this house, ⁓ it like I I cleaned up the yard a lot. It was mostly just yard work. Yeah, you know, a lot of raking, a lot of pulling weeds, ⁓ mm and you know, kind of cleaning up flower beds and stuff. Yeah. And my my ⁓ family came out and helped one weekend too, which was pretty cool. Nice. ⁓ I rebuilt a deck. Nice. ⁓ all these things that I wouldn't ⁓ honestly even notice if I just had handyman do it all. Sure. ⁓ but I it was important I think the first week or so to be here during all the demo process. That way I can get a real plan together of exactly, you know, do I want to change anything about my initial plan before I bought this now that I've had a chance to put my hands on it. speaker-0: Now's the time to change it when everything's open and wide before you start rebuilding things. You built that deck yourself? speaker-1: Yes. ⁓ that's really. Well, I mean, there's a lot of the same planks, okay, but like as I I was replacing a few that were rotten. Yeah. And then I noticed as I took some off, I'm like, ⁓ all these joists are rotten. So I just had to take the entire thing apart and start from s from scratch. But I was able to it was easy. I just rebuilt what was there. I just copied the plan basically. I just copied what was there. I'm like, ⁓ okay, I need these joists, how much ⁓ okay. Cool. Easy to speaker-0: You built the deck, that's super cool. Easy, peasy. ⁓ the question I'm gonna ask obviously, like if this deal came across your plate in the exact same manner and the exact same way, would you do it again? Hard to pass up an easy seventy five thousand dollars of money. speaker-1: In a heartbeat. Yeah. ⁓ yeah. Well it's not just that. It was a it it was in a a location that works. Yeah. It's good location. Close to my house. A lot of houses I flip are like an hour basis. Kellogg. Pre-server, Bonners Ferry, you know, they're they're kind of out in rural areas where you can actually get good deals sometimes. Yeah. ⁓ so it's kind of cool to have a property that's only twenty twenty minutes away. Yeah. ⁓ it is on the other side of Post Falls. So it's not as close to my house. Yeah. But w it's fine. And then be being able to flip a house that was only built twenty years ago, yeah, is so amazing. And anyone who's flipped houses before knows that those are the good ones because you don't anticip there's really not much to anticipate it much more going wrong right than what you've already got budgeted for. Yeah. Because ⁓ this house was you know, they build houses these way ⁓ the same way. Yeah. speaker-0: It's crazy as like yeah, it's a 20-year-old house, right? That was 2006. speaker-1: Two thousand well, ⁓ sorry, it's twenty five or so. It this is two thousand two. Okay. Two thousand speaker-0: Nonetheless, like something made after the year two thousand. Uh-huh. Pretty cool. We were graduating then. speaker-1: Yeah, so so ⁓ so we knew it was just mostly a cosmetic thing. Yeah. Even the roof has never been replaced and it was still fine. Nice. ⁓ so yeah. So let's see, do you wanna walk around the house and we'll talk about how much things cost and what I did? speaker-0: ⁓ I'm gonna go ahead and take it off of this stand like we didn't do last time, so I'm not walking around like with a goofy stand. ⁓ you don't like the goofy stand. It's not that I it just it's just goofy, man. We're gonna hand hold. Bring that guy here. speaker-1: Don't like that. So I think the first thing you'll notice is that we did staging. ⁓ did we talk about this at all? That I was gonna stage the house. speaker-0: and half months since our last podcast. I don't quite remember. But staging looks incredible. speaker-1: Yeah, so that was something ⁓ this is something that I do on almost every single flip because it's worth doing. It is a hassle moving furniture around, it's not fun, I never like it. But it's always worth it. As soon as it's all set up and in place, it was always like that was worth it. It looks so much better than a vacant house. ⁓ yeah. And it's just so much easier to sell a house ⁓ that has staging furniture in it than not because you have to have you you actually get this exact same house I know from experience if I had no staging furniture in here, it would have a lot more showings before it'd have an offer probably. Just because people have a tough time d envisioning things. They don't really ⁓ it's just you're just looking at walls. and floors and tiny imperfections and scratches. speaker-0: And this is all your staging furniture, correct? speaker-1: And it's obviously mean it's not expensive stuff either. I think this couch was, you know, an Amazon couch were three hundred bucks. ⁓ these chairs are pretty cheap. ⁓ there it's a lot of flimsy furniture, but it looks nice. Yeah, it does. ⁓ where do you keep it all? ⁓ in a shed in my backyard. Okay. Or at other flips. Sure. Yeah. So we typically do, you know, a little dining, bar stools, couple of chairs, ⁓ a couch, some sort of coffee table, rug. speaker-0: You got a job. speaker-1: W you'll see we have a rug under the dining table, there's a rug in the kitchen, there's a rug in the living room, even if there's ⁓ carpet, we still will put a rug down in the master bedroom. speaker-0: Yeah, it looks really good. speaker-1: And then this is just an air mattress. Yeah. So it takes you know, this bed has been in so many houses. Yeah. And it's a piece of crap bed, but you can't even tell because it's just, you know, it looks nice. It looks nice on the outside. Then this Yeah, we usually in a master, you know, if you can throw in a chair in the corner, it just always makes the master room feel bigger. Sure. So just throwing a chair in the corner with a blanket and a p and a pillow and stuff. speaker-0: Now we bathroom a little bit too, but you got this chair over here. speaker-1: Yeah, a little bit of staging in there and then that's pretty much it. And then in the other bathroom we have kind of the same little effects. ⁓ but you'll notice in the all the other rooms it's empty. Right. ⁓ you don't have to stage every single room. Yeah. speaker-0: I agree. Your master, your kitchen, your living room, and maybe a couple little trinkets here and there make a pretty big difference. speaker-1: And the reason for that is whoever's purchasing the house, they're going to be living in that master room. So it's better to like have that kind of feel nice and speaker-0: Sure. They're also like they're gonna be spending a lot of time out in the kitchen and living room too. That's typically where people in these houses. speaker-1: Yeah. So Where you always wanna put the most money flipping a house is in the kitchen. Okay. ⁓ this is ⁓ the kitchen and the master ⁓ bathroom is where buyers typically make their decision. Sure. Like if this kitchen works for ⁓ you know, it costs a little bit more than what my initial plans were. I don't remember if I changed them up before or after that podcast that we did, but I was initially gonna keep all the lower cabinets and the upper cabinets and just paint them white and then just replace the countertop. speaker-0: These are all new categories. speaker-1: But now, yeah, I just got all new cabinets. Yeah. Looks really good. Including ⁓ I spent an extra, I don't know, eight hundred bucks or so to wrap the fridge with the panel and stuff. And spent, I don't know, two or three hundred dollars for the crown molding. Yeah. So I just ⁓ the company that we work with, Northwest Granite and Moore, ⁓ they'll do all the cabinets, countertops, and sinks in the whole house for me. Awesome on a lot of my flips. Yeah. That way I only have come in later and just you know buy a thirty dollar thing from Amazon that will cost two hundred dollars at Lowe's. You bought that from Amazon too? ⁓ yeah. Cool. Yeah I get all my ⁓ one of my my fix and flip houses. ⁓ I'll get sh cheaper Amazon ⁓ faucets ⁓ because they always have them on sale somewhere and I get black and it will look nice but they're really not that great. homeowners can always swap these out yeah but it works. You know there's nothing wrong with it. But it's not gonna last as long as like a mowen or delta. Sure. So if you're buying a rental property, spend the two hundred dollars on a mowing or delta. That way it kind of lasts a lifetime. And it won't start leaking after five years. Does that make sense? Yeah that makes sense. speaker-0: Obviously since your plan was to flip you speaker-1: You maybe we're flipping it so the homeowner they can just keep that or swap it out at some point, but it works. Cool. ⁓ and then we buy these, always get hardware, it dresses up the place, and these are cheap. ⁓ these are on Amazon for like you can buy them at Home Depot for like two to three dollars a piece. ⁓ or on Amazon they're like thirty three cents a piece if you get a big box. speaker-0: ⁓ were those did those come black or did you have to paint ⁓ speaker-1: No, they came black. Okay. Yeah. I have silver ones at the time. I'll be sure to get back. speaker-0: Physically paint them. speaker-1: We didn't have to replace any of the windows in this house. They all cleaned up really well. Yeah. ⁓ but all the window screens we had to replace. Okay. So my handyman just replaced every single window screen in the house so it looks nice and fresh. Was that part of the window too? Yeah. Okay. because ⁓ if I didn't do the window screens, these windows would not look as clean. Yeah. ⁓ even if they weren't s scratched up because window screens do build up ⁓ dirtiness that you just can't clean. Yeah. ⁓ we got new L VP floors in here. ⁓ but all the drywall, all this trim, this is all the original trim. Nice. It was taken off and put right back. Sure. ⁓ and you'll notice that we painted the trim, the walls, the ceilings, the doors are all the exact same color, same sheen. it made the painting bill cheaper. Yeah. By just doing it all in one. speaker-0: And it doesn't look bad, it looks really good. speaker-1: looks like yeah. It and how it kind of looks sharp like this is when you just go and we swapped out all the hardware. Yeah. So ⁓ I think I mentioned in the video before this was all old brass hardware. Again, Amazon cheap, you just get a big box of all these black hinges that'll fit in it's in the old places. and again like a thirty dollar fix for the entire house. Yeah. These two, when you buy these in bulk on Amazon I think you can get ten at a time for like thirty bucks. Nice. ⁓ much cheaper than buying at Lowe's or Home Depot. Right. Go on go to Amazon for these kind of things. Okay. So I think all the hardware in the whole house costs like three hundred dollars. speaker-0: stockpile those at your house? Like if you have extra, do you just use the same color on every house or speaker-1: I do, but I always just get new it's just easier just to buy new have it shipped right to this house. Sure, that makes sense. versus me digging through old stuff and trying to bring in salvage. Yeah. It's just better. I don't know. It's just it's all about that like how's your time spent? Right. speaker-0: That's a very like small expense to have to like, ⁓ I'm gonna save these and try to inventory. speaker-1: In this bathroom, ⁓ everything kind of looks and feels new, but the actual the only new things is the vanity. Okay, the light, the toilet lid, okay, and the shower curtain. Wow. That's it. But this is the original shower. I don't know if you remember how nasty and dirty it was. speaker-0: Picture. Yeah. speaker-1: Okay. ⁓ but it was just full of calcium and rust and dog hair. ⁓ great. But now it looks it looks brand new. You just hire a really good deep cleaner and pay ⁓ a lot of money. Right. And you can avoid spending two thousand dollars for a new shower. Yeah. Love it. ⁓ so yeah. That's pretty much it in here. Cool. ⁓ in the bath in the bedrooms. Mm-hmm. It just simply carpet from Lowe's. Lowe's did all the carpet in this house. Most of it's downstairs. ⁓ but I usually get the bedrooms carpeted, staircases and downstairs and or upstairs. And Lowe's speaker-0: install of the carpet as well. speaker-1: Yes. Yeah. Total all in was like two dollars a square foot with install. Pretty fair. ⁓ and then again, Amazon, all these big light fixtures, ⁓ you can get boxes of those and they wind up being like seven to eight dollars a a speaker-0: Nice. Great lights. speaker-1: So you don't have to spend a fortune on lighting. But it is kind of important here and there. It's funny, you'll spend just as much on something like that as you will the rest of the lights in the warehouse. That one's gonna cost much as everything else. And then like a fan in the living room, you know, we spent a little bit more on that. Sure. ⁓ but not much. It was maybe a hundred bucks on Amazon. A lot of these things I got on Amazon. My wife picked out these these lights are pretty cool. They can be used in both vanities or as track lighting. And it was track lighting before. Normally in kitchens, we'll just have ⁓ we'll just be doing can lights and we'll just install more lights. But to save money, we I didn't want to cut into drywall up here. So we didn't do any drywall work up here other than I had the drywallers. like fix a patch here. We also save money by not doing backsplash. And I backsplash tile is very cheap, but it's still labor. Sure. ⁓ we just had the granite counter ⁓ company throw in this. Cool. speaker-0: That's great. Like I mean y obviously you switched out the lights up here, you didn't do the can lights or whatever, but these look good and it's very well illuminated in here. Yeah. Like your color looks good and it kinda and it clashes well with the color scheme that you speaker-1: Yeah, the color is called Greek villa. Greek villa? Greek villa. It's a white shade that's look that's in right now. Yeah. yeah. And then ⁓ if you want to check out the basement. Yeah. So here we just swapped out brackets ⁓ instead of the old brass. You know, I always want to change out any brass for black. Sure. And then this handrail is just simply painted white. Cool. By the painters. I don't know if you remember it much down here. But this was all unfinished and there was just there was stuff everywhere. Yeah. And it was unfinished and the the walls at least had it was mostly kind of frame, but not the bedroom in the back there. ⁓ but yeah, we had a lot of the work was done down here. kinda had to try to figure out what to do with this awkward room because there was this post right here. Yep. If you remember. And then the rest of it was kind of open. We didn't really know how to finish it out. Ended up just deciding let's just make this a big bedroom with a big walk-in closet and somebody can easily fit a full king size bed here. This would just be a nice big bedroom for someone downstairs. You get the full egress window. Cleaned up you know there was a tree growing out ⁓ yeah there. We got some new gravel to kind of clean this up so it doesn't look too nasty. speaker-0: Yeah, no, I remember when I shot this room, I was like, this is kind of an awkward room, but it it works. Yeah. speaker-1: ⁓ and then ⁓ the bathroom looks very similar to upstairs. Yeah. So we just kind of built out what was already there and used the old tub that was never hooked up and the old toilet. yeah. And then in this room ⁓ if you remember watching on the first podcast, anybody out there, ⁓ this room had no closet. Right. So what I ended up doing was just I had the framer build me out a closet in here and cut it open. ⁓ so we just just brought this out and we just made it work to where we just had a normal four foot closet, you know, one and a half feet deep in. It's got the eagle. Now it's a full legal bedroom. speaker-0: And that makes that makes it a legal bedroom, correct? speaker-1: The eagle the egress window and it's just t completely functional now. Cool. and then In here we didn't do much. I just had an HVAC guy come. Check it out, make sure it was working. There was the first HVAC guy that came here, he said I need to replace the furnace because it was making a loud noise. Mm-hmm. And I need to spend four thousand dollars. Okay. I had another f guy come here that I wanted initially, he finally came, Joe from Sunrise. ⁓ huh. And he's like, Your furnace is fine. This blower just needs replace. It's a twenty dollar part of this little blower dial thing. Yeah. And he came and s and he fixed it for twenty dollars. And he said it's working fine. There's no reason to replace this thing. This is the water heater. These are like salt purifier like ⁓ water filter filter. It's all clean now. Cool. speaker-0: What's this over here? This is your Water, water You guys did good job. Yeah, thanks. ⁓ speaker-1: ⁓ so that is ⁓ that's pretty much it.