HGTV Home Flips are NOT the Real World!

HGTV home flips are not the real world, so why do so many "investor wanna bees" swallow that hook? In just 22 minutes, you see homes transformed from disasters to diamonds, complete with upbeat hosts exchanging forced banter and crews magically working under budget. Sure, it’s entertaining, but many gullible viewers buy into the fantasy of “getting rich by flipping homes,” only to have it end badly. Trust me, I know. With over 35 years of experience as a full-time broker and appraiser, I’ve worked with both traditional clients and investors. Flipping homes can be a risky endeavor for those who aren’t well prepared — just ask Zillow, Redfin or Opendoor. Combined losses for those all-stars exceeds $1 billion.

Here’s an example, an investor client of mine. They are not rookies and knew this home had termite and mold issues before clearing out the trash. Once the debris was removed, the full extent of the damage became clear. Unfortunately, this is fairly common. Investors often walk into homes, sometimes wondering how people ever lived in such conditions. They notified the mold and termite experts, who started opening up the walls to get a better picture of the damage.

A couple of days later, I got a call from the neighbor across the street: “Hank, there’s water leaking out from under the garage door. I shut it off at the meter but you need to take a look". This is a prime example of why investors should build good relationships with neighbors - not just for emergencies, but for future word-of-mouth when it’s time to sell. I called the seller and they scrambled a plumber to evaluate things.

The initial thought was that one of the demo guys had hit a water line, didn’t notice the leak, and left for the day. There was no evidence of that and none of the workers were around plumbing lines. The plumber later called with the verdict: “Chit happens.” Turns out, the ice maker line had failed at a joint. Polybutylene pipes are notorious for this, especially at couplings. Over time, the compression and additives in the water weaken the pipes, eventually causing them to fail.

The mold crew already started removing drywall and opening up the walls for treatment. They had to remove just about all drywall higher than initially planned and remove all insulation. Fans and dryers were brought in, and a mold inhibitor was sprayed onto all affected areas. Once the walls were scrubbed, sprayed, and fully dried, the termite team treated the perimeter with oil and repaired the interior damage. Only after everything was moisture-tested and fully dried, did they replace the insulation and repair the walls.

All of this, as you can imagine, doesn’t get wrapped up in a neat 22-minute episode. For novice investors, the most important lesson is to “buy right” and partner with an experienced agent who knows the market, understands trends, and isn’t afraid to tell you “no.” Without adequate reserves, unexpected issues like this can completely derail a project. Always keep emergency funds and build a list of trusted contractors. Otherwise, you might find yourself being taken advantage of by contractors who prey on rookie investors—but that’s another story.

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