Income Property - Elliot   View more episodes

Aired at 12:00 PM on Thursday, May 06, 2010 (5/6/2010)      View all transcripts from this day


00:00:00So I just need to hear it, firm and final.
00:00:05Option 2.
00:00:06I agree. I think we'll go with option 2.
00:00:08Option number 2.
00:00:09I think that you chose the best option that best suitsyour lifestyle.
00:00:12And I know that that's what--more realistic?
00:00:15Yeah, what $10,000 gets you.yeah.
00:00:17And you are repayingthat $10,000 in 10 months.
00:00:21 and ten months from now,all that renovation is free.
00:00:24Well, we're gonna get started right away.
00:00:27The floor plan of elliot's apartment isn't changing, so it's difficult to envision the transformation just by looking at the blueprints.
00:00:34Here's what I'm thinking.
00:00:35What I'd like to do is rip out this primitive kitchen and level out that bulky back wall.
00:00:40Now I can put in brand-new upper and lower cabinets, a solid surface counter, and I'm gonna leave enough space for a full-size oven.
00:00:48The shack in the back needs a lot of work.
00:00:50I want to reframe this whole room, insulate, drywall and put down new laminate flooring.
00:00:55There's room for a nice bright window, and I'm gonna replace the front door with a nice exterior door with proper security.
00:01:02Now this'll act as a dedicated entrance for the tenant leading into a brand-new apartment.
00:01:07Elliot can stop spending all his money on this house, and he can actually start making money.
00:01:13i am.
00:01:16Anything you leave down here we're throwing out.
00:01:19 let's move everything else that's not moved out yet.
00:01:24Let's move it upstairs.
00:01:25ar I'm looking forward to that.
00:01:29You might as well do the-- oh, look at that. here he goes.
00:01:32We need to get himlike a demo hammer.
00:01:44we got your kitchen out.
00:01:45I'm gonna show you what I'm gonna do here.
00:01:47We're gonna move these pipes here.
00:01:49That's what's been responsible for this whole bulkhead.
00:01:51So we're gonna move this back and put in the same bulkhead ..okay.
00:01:56Open this up.
00:01:57And out here, which is gonna be the pride and joy of the whole project, ..
00:02:04Get this insulated properly.
00:02:06upstairs. yeah.
00:02:10We're just getting started down here, and already, elliot has me checking out his renovation mishaps upstairs.
00:02:16I want to--got a couple things to show you up here.
00:02:19So in here, it's a tight squeeze.
00:02:22Excuse the mess.
00:02:22You can see the pipes come out of the ground.
00:02:25Because there's no heat in here, they froze in the wall a couple of weeks ago, and all this got flooded.
00:02:31Elliot is doing his own renovations upstairs, and, of course, he's learning as he goes.
00:02:36In a situation where you're renting out a space, you can't afford to take those kind of chances.
00:02:40You have to have everything done, and you have to have everything done properly.
00:02:43You can't have leaking faucets and broken plumbing.
00:02:47These are things that are going to encourage your tenants to leave or not pay rent or at least give them an excuse.
00:02:53 plumbing-- plumbing problem-- since we're doing the renovations down here, I would like to rectify the situation.
00:03:01So we're gonna close off the problem so that the tenants don't encounter any backlash from any work that needs to be done in the future.
00:03:09What's up?over here, buddy.
00:03:13Look how wet that is.
00:03:15What is this?
00:03:16I took the tiles off,and they came out extra easy.
00:03:19What, uh-- the leakthat we had upstairs went down this wall over here. oh, my.
00:03:28Look at this. it's frozen solid.
00:03:31There's ice on it.
00:03:37This is all ice.
00:03:42What's happening?
00:03:44Oh, there he is!
00:03:46We found your leak.
00:03:48It's coming all the way down here.
00:03:49Look at your walls. they're covered in frost.
00:03:54Right here, you can see all the frost.
00:03:56Yeah, we'll pull all that drywall out.
00:03:59 that means your handiwork upstairs has just caused major problems for us down here.
00:04:07(sighs) OH, MAN. (laughs) Now that the snow is melting onthe roof, THERE'S A LEAK.(sighs) This is a pretty bad scenario.
00:04:15yes, it is.
00:04:19Without renting this out,he's not gonna last much longer.
00:04:48ú ñ you noticeables, it's all that people notice.
00:06:34I didn't even think that was possible.
00:06:36[ Woman ] I KNOW, BUT THERE IT IS.
00:06:38[ sniffing ] Febreze you plug in to the wall.
00:06:41[ Male Announcer ] WHEN YOU PLUG IN A FEBREZE Noticeables, it's all that people notice.
00:06:46[ Man ] WOW.
00:06:47That is amazing.
00:06:49I know. imagine.
00:06:50[ sniffing ] Febreze you plug in to the wall.
00:06:55[ chuckles ] [ Male Announcer ]FROM FEBREZE COMES NOTICEABLES.
00:06:58Freshness you'll notice or your money back.
00:07:02] swiffer much, you may never go back to your old furniture polish.
00:07:06♪ Love stinks ♪
00:07:07♪ love stinks, yeah, yeah ♪
00:07:09it's the only furniture polish with febreze freshness.
00:07:13[ record scratches ] That's right, ..
00:07:16To help eliminate odors, while you clean and condition.
00:07:19So your furniture ..
00:07:21And your home " swiffer gives cleaning a fresh new meaning.
00:07:26[ knock on door ] ♪ ♪
00:07:34we found your leak.
00:07:35It's coming all the way down here.
00:07:37Look at your walls. they're covered in frost.
00:07:38When you told me you had a leak upstairs, I thought you hada little puddle in your kitchen.
00:07:4300in the morning, came in here,turned on the light.
00:07:47 so I went down-- you didn't mention thiswhen we walked around the house. no.
00:07:55 i-i-- all right.
00:08:00Well, let's open it up and let it dry out.
00:08:05NO MORE RENOVATIONS UPSTAIRS! (speaking indistinctly) No more renovations upstairs.
00:08:11Well, these moisture problems can be a disaster.
00:08:14It's a good thing we found it while the walls are open.
00:08:17It's just gonna take a little more time and less than 100 bucks, and we'll fix it.
00:08:28in the mudroom, we're raising the floors and insulating because this was a real heat and energy drain, not to mention a clear waste of space.
00:08:38Elliot--first cupboard's up, I see.
00:08:40First cupboard's going
00:08:42(Scott) WHAT WASREALLY IMPORTANT Is that we took outthis section here, and we replaced all thisbefore it became a problem.
00:08:48In the spring,once this thawed out, it would have started mildew and smell.
00:08:52And it would have been a real problem.
00:08:54We would have had to come downand potentially do construction .. yeah.
00:08:59Which is not what you want.
00:09:01let me show you something else.
00:09:03I've had my tenant hat on all day.
00:09:06And I've been thinking, if I'm gonna rent this place, it's got to look good.
00:09:12I'm blaming you for this mess.
00:09:14Those look like kitchen cupboard boxes.
00:09:16Hey. you know what?
00:09:17That's just icing to the cakethat you already baked out here 'cause this isa disaster zone.
00:09:22Yeah.this needs to go.
00:09:23We can take all the stuff away to the dump.
00:09:24Got it.
00:09:26And that way, when somebodycomes up to look at the house, they get a greatfirst impression. nice.
00:09:32'Cause I would--if I were you, I would be posting this "for rent" shortly, get the feelers out there,see if you got some interest.
00:09:41I want another party before-- until I get to the--"i want to haveanother party"?
00:09:48Elliot still needs a reality check.
00:09:50This is a rental property. it's a business.
00:09:53The most important thingis to get this thing rented out, start making some money.
00:09:58And I'm nervous for him.
00:10:00I really am because he's sacrificing a lot of time at work, and he's sinking every last penny he has into this.
00:10:07It's like getting into a bit of a gambling situation.
00:10:11Without renting this out, he's not gonna last much longer.
00:10:28We are totally on time ..
00:10:32the floors-- I know we talked aboutthe floors a couple times.
00:10:36What we plan on doing is cleaning them.
00:10:38We've got a hardwood floor cleaning product.
00:10:40I don't want to spend more than you originally budgeted for.
00:10:43To really finish off this space, it's gonna pay off a lot more than spreading it thin across the rest of the apartment.
00:10:51I see.
00:10:51Have you finishedanything else upstairs?
00:10:54Um, no, I have not.
00:10:56It's still a work in progress.
00:10:58I've been hearing rumors. rumors about what?
00:11:00About leaks--rumors have been filtering down that water's gonna befiltering down shortly.
00:11:06Yeah, there's a leak.
00:11:07Now that the snow is melting on the roof, there's a leak in the room off the kitchen.
00:11:14Right in that room back there.
00:11:20Ooh, your new drywall.yep.
00:11:23This is a pretty bad scenario.
00:11:25This is right above the work I'm doing downstairs.
00:11:28Yes, it is.
00:11:30Once the snow goes away, I'll get someone in there to fix it up.
00:11:33Well, there's your money for your hardwood floors.
00:11:37You got to get some new roof.
00:11:39But the only things I feel that's left to make that apartment rentablewould be to finish the floors.
00:11:46But that wasn't in the budget, so I'm a little bit disappointed about that.
00:11:50I feel likedoing the floors adds, even from a renter, definitely from a houseperspective, more value.
00:11:58But even from a renter's perspective, I think.
00:12:00He's brought up the issue of the floors several times, and he thinks it's only gonna be a few hundred dollars.
00:12:06But he also thought that upstairs was only gonna be a few thousand dollars, and he's in for 30 grand already.
00:12:11And he keeps injecting money.
00:12:13Today, the roof's leaking.
00:12:15I'm sure that wasn't in his budget.
00:12:16You know, he's got to know when to draw the line.
00:12:18I just think the floors can maybe wait ..yeah.
00:12:24And you're living, and you're, like, cool.
00:12:25There's no more expenses.
00:12:26Now I can invest a little more into downstairs.okay.
00:12:29I really, like, I'm pushing you only because I want it to get rented, I want to see you start making cash on it.yeah.
00:12:38And I don't want it to become an ongoing project like up here, you know?no, no, no. it won't.
00:12:46Let me show you what I've done to your apartment.
00:12:47(Elliot) OKAY.
00:12:50 that's really nice.
00:12:52What was here beforewas pretty much unacceptable.
00:12:55The last thing to do is to rent it.
00:13:30, lifefrom with real chicken, wholesome grains, delicious salmon and a touch of cranberry and cheese.
00:13:37Finally it's all come together.
00:13:39Healthful life from purina cat chow.
00:13:42Yes, healthy can be delicious.
00:13:470 # I am a bit disappointed about the floors.
00:15:50I feel likedoing the floors adds, even from a renter, definitely from a houseperspective, more value.
00:15:58Elliot is a real estate agent, and he thinks like a real estate agent.
00:16:01And that's fine when you're flipping a house or selling a house or buying a house.
00:16:07There are different areas that you invest your money when you're trying to rent a house than there are whenyou're trying to sell a house.
00:16:14More important was when I said to you, " and you said, you know, "like $10,000 is my budget."uh-huh.
00:16:20I said, "let's do $10,000 worth of work "and put aside the things that, you know, ..yeah, yeah.
00:16:27But that are not gonna make or break the " yeah, got it. cool?
00:16:31Got it. all right. cheer up, buddy.
00:16:33I'm cheery, I'm cheery.
00:16:41I've learned a lot in the process in terms of what to do when.
00:16:46So I feel like the next time I do it, I'll be able to budget my time much better.
00:16:52I will still do a lot of things myself.
00:16:53I get a personal satisfaction from doing it myself.
00:16:56I realized that there's a trade-up between my time working doing real estate, and my time doing renos here.
00:17:08(Scott) COME ON DOWNSTAIRS.
00:17:11Let me show you what I've done to your apartment.okay.
00:17:18Talk about a different apartment.
00:17:20This is really nice.
00:17:23We've used some inexpensive ways to highlight the great features that this room already has, like the crown molding and the fireplace.
00:17:30 everything looks modern.
00:17:31 it feels like a good living space.
00:17:34Yeah. clean and brighter.
00:17:36Let's go into the bedroom.
00:17:38Ooh. wow.
00:17:38Now who wouldn't want to sleep in here?
00:17:40 this is very similar ideas that we used in the living room to make the room feel as bright and as big as possible.
00:17:46It's a really good return on investment, considering we didn't put much money into this room. works for me.
00:17:51Where we did put a lot of money, though, is the kitchen.
00:17:54Here's where things gota little bit more interesting.
00:17:57Wow. look at that kitchen.
00:18:00Look at that counter.
00:18:01Now this is where we spenta lot of time and effort 'cause this isthe most important part of this apartment. yeah.
00:18:06What was here beforewas pretty much unacceptable.
00:18:10So what we did is,without spending a fortune, we got some practical cupboards, a durable countertop, and again, look at the colors we've used, the lighting we've used.
00:18:19It feels like a modern kitchen, doesn't it?
00:18:22Yeah. yeah.
00:18:23What I'm most proud ofis what's behind door number 2, is this mudroom. wow.
00:18:30Can you believe it? yeah. it's nice.
00:18:31Wow. wow. come on. look at this.
00:18:34Wow. look at this.
00:18:35(gasps) REMEMBER YOU HAD THE BROOMSTICK Across the busted-up door.
00:18:39Now the tenants have their own fantastic entrance where they can leave their jackets, leave their shoes.
00:18:45Is it a new window? oh, yeah.
00:18:47We put in energy-efficient windows.
00:18:49We insulated this whole room.
00:18:52This is going to be a fantastic first impression for the tenants.
00:18:55And once you get them into the kitchen, you'll have them sold.yeah.
00:18:59There's really no denying it, I mean-- I'm sold.
00:19:02They're gonna see this, they're gonna say, " thank you, scott.
00:19:06Knowing that in a month or two,there will be a tenant in here, it's definitely a relief.
00:19:12I know I don't have to do anything in this apartmentfor a long time.
00:19:15A couple of thingsi wanted to tell you.
00:19:17I met with the professorof national appraisals.
00:19:19He teaches appraisershow to appraise properties.
00:19:22 he came here himselfto see what we were doing.
00:19:25Knowing that you boughtthe house for $290,000, he said it would befairly reasonable to say this house could sell for $400,000, and that was without even seeing what was going on upstairs.
00:19:36Wow. oh, really?
00:19:37Yeah. wow.
00:19:38 I'm a real estate agent, so I'm not that surprised.
00:19:41But, yeah, I agree with him. I concur.
00:19:45" well, at this point, the last thing to do is to rent it.
00:19:50And you want to say,"five appliances, all included, fully renovated,main floor apartment," right?
00:19:57Because it is a main floor, and that'sa big selling feature.
00:20:00Closed Captions provided byScripps Networks, Llc.
00:20:04Captioned byClosed Captioning Services, Inc.
00:20:09Have you ever stayed in a hotel room so luxurious that you didn't want to leave?
00:20:12 I just want my bedroom@@ to look like that hotel room.
00:20:15Well, there's a way to have that 5-star look without the 5-digit price tag with a little philosophyi like to call splurge and save-- ..
00:20:27I'm sold. let's take it.
00:20:28And then using some saving tricks to bring the whole look together.
00:20:31this splurge on big-ticket items, and save on everything else " mommy.
00:20:45David and michelle blank recently bought a home in new york where they live with their two children.
00:20:50Now they love their master suite, but they haven't had time so the room remains, well, blank.
00:20:57No pun intended.
00:20:58Now david really wants to give michelle the luxurious master bedroom retreat that she deserves.
00:21:03But they won't budge from their $6,000 budget, which is why I am here.
00:21:12Wow, you guys havea great design sensibility.
00:21:15You definitely lovethese warmer earth tones.
00:21:16(David) THANK YOU.
00:21:19What are these over here?
00:21:21Those are photos we took fromour honeymoon in south africa.
00:21:25Now obviously this wasan inspiration for you because this is a focal point in your room.
00:21:30We're gonna do thatin your bedroom as well.
00:21:32so I'd like to see your bedroom because that's why I'm here, right? yes.
00:21:35Come on.
00:21:38Okay. cool.
00:21:39Wow! this room has so much potential.
00:21:42It's so light and airy and big in here.
00:21:45(Michelle) THANKS.(David) THANK YOU.
00:21:46So, guys, tell me what it is that inspires you.
00:21:50It's that south africa trip.
00:21:51It was the tripof our lifetime.
00:21:53And we stayedat this 5-star hotel.
00:21:55It was absolutely amazing.
00:21:57So we want to make sure we give you that feeling that you're entering this gorgeous 5-star hotel where you guys stayed.
00:22:03Tell me what you dislike about your bedroom.
00:22:08I don't like the white walls.
00:22:10It just feels so empty in here, it doesn't feel homey.
00:22:15we're busy professionals, and when we come home,we tend to our children.
00:22:21Let's go. let's go.
00:22:22The last thing we have time to do is to decorate.
00:22:25It's not the first time I've heard this story.
00:22:28The kids' rooms are done, they're all set, and our room was left for last.
00:22:33I see, though, you have a little bit of a mismatched furniture selection going on.
00:22:40This was my furniture frommy first apartment in atlanta.
00:22:43 I don't even like it.
00:22:46I don't like the way the tv sticks out.
00:22:49I think it's just bulky and ugly.
00:22:50My older sister had this piece of furniture.
00:22:53It's not working. I'm not attached to it.
00:22:55I heard you paid $5for this headboard, which i-- it really excites me. that's amazing.
00:00:00Land in a sustainable way that allows us to keep producing healthy, nutritious, pesticide-free food.
00:00:07(woman) THE COMMUNITY CAN COME TO THE FARM, So they can see where their food is grown, how it's growing.
00:00:12They can pick their own, and then we also sell it at amagansett farmers' market and other farmers' markets in the area.
00:00:18They actually met as farm apprentices, and they started the organic farm this year, and it's so cool, because it's a nonprofit community-supported agriculture, and it's also an education project.
00:00:29(Amanda) WHEN WE PACK THE BASKETS, We think about what things are in season, whether it's fall greens or tomatoes or lettuces or sweet potatoes or whatever it is that's in season.
00:00:38It's a nice way to educate the community about what's growing right now.
00:00:41I heard about them from my friend eli zabar, because the farm is right behind his amagansett farmers' market.
00:00:47He sells their produce, and he also gives everybody two loaves of his fabulous home-baked bread in each of the farm boxes.
00:00:53I really try to use everything that they put in the box.
00:00:57Recently I've been getting greens like bok choy, eggplants, all different kinds, all different colors.
00:01:03Green beans and purple beans.
00:01:05I love the purple beans.
00:01:07And in the fall there are pumpkins and winter squash.
00:01:11They're all so beautiful, and they all have so much flavor.
00:01:14Okay, that's 2 pounds of tomatoes cut up.
00:01:17And the bread's starting to smell delicious.
00:01:21Oh, perfect, just lightly toasted.
00:01:23You just want them a little crisp.
00:01:26And in go the tomatoes.
00:01:33Okay, the next thing is a tablespoon of the chopped garlic.
00:01:372 Tablespoons of sugar, all that really doesis just caramelize the tomatoes, gives 'em great flavor.
00:01:462 Teaspoons of salt, 1 teaspoon of pepper.
00:01:53And just stir it all together.
00:01:59Okay, next--lots of fresh basil.
00:02:02Mmm. it is my favorite. I love it.
00:02:05Just give it a big wash.
00:02:14But I know I'm gonna put in more.
00:02:19Doesn't have to be perfect.
00:02:23I think that's more than 1/2 a cup, but it's gonna be delicious.
00:02:26So I think the tomatoes are done.
00:02:29Mmm. that's great.
00:02:29You can really see that the bread absorbed all those tomato juices.
00:02:33Now off the heat, I'm gonna add the basil.
00:02:36Just put it right on top.
00:02:37Just give it a big stir in.
00:02:41How good does that look already?
00:02:44Okay, this is the gratin part.
00:02:47So I'm using a big gratin dish.
00:02:49I'm just gonna pour the whole thing right into the dish.
00:02:55And then I'm gonna put a cupof parmesan cheese right on top.
00:03:00Okay, lots of parmesan cheese.
00:03:04And just the last thing for flavor is 2 tablespoons of olive oil, just drizzle it right on top.
00:03:14And into the oven at 350 degrees for about 35 minutes until it's bubbly and browned.
00:03:21This smells so delicious. bubbly and hot.
00:03:25I just have to make sure it tastes good.
00:03:27It's all the tomatoes and, ooh, all the juices, parmesan.
00:03:32It's gonna be really hot.
00:03:36That's so good.
00:03:37And it's great with anything or all by itself for lunch.
00:03:41Okay, that's part one of my farm stand challenge.