Ep 4. Underwater Flip

In the fourth episode of Flip or Flop season 1, viewers follow Tarek and Christina as they take on a unique project: a home with an underwater loan. This means that the previous owners had a loan on the home that was higher than its actual value, creating a financial burden that the couple needed to overcome in order to sell the property for a profit.

The episode begins with Tarek and Christina touring the home, which is located in Torrance, California. They note that the house has good potential, but it will require a lot of work, especially considering the added financial challenge of the underwater loan. The home has four bedrooms and two bathrooms spread across 1,412 square feet, and it is listed for $389,000.

After some negotiations, Tarek and Christina purchase the home for $315,000, which leaves them with a $74,000 budget for renovations. They immediately break down the budget and determine that they need to invest in new flooring throughout the house, new appliances for the kitchen, a complete bathroom remodel, and some custom carpentry work to add unique features to the home.

Renovations begin and the couple experiences some setbacks along the way. For example, they discover that the ceiling in the living room needs to be completely redone and this takes up a significant amount of their budget. However, they manage to stick to their plan by cutting costs in other areas, such as installing new cabinets in the kitchen instead of ordering custom ones.

One of the highlights of the episode is when Tarek and Christina create a feature wall in the master bedroom. They use recycled wood to make a unique installation that adds character and charm to the room. Another unique feature is the custom-made sunburst mirror that they add to the living room.

As the renovations come to an end, Tarek and Christina begin to stage the home for the market. They hire a professional stager who helps them choose furniture and decorative pieces that highlight the beauty of the home and make it more appealing to potential buyers. They even add some unique touches such as a lemonade stand in the front yard and a custom-made surfboard on the wall of one of the bedrooms.

When the house is finally ready to hit the market, Tarek and Christina hold an open house. They have high hopes for the property since it is located in a desirable area and has undergone extensive renovations. However, the open house does not go as planned and they receive much less interest than they were expecting.

At this point, Tarek and Christina must make a decision: do they lower the price of the house or do they wait and hope that more people become interested? They have to consider the fact that they are already so deep into the project financially and they cannot afford to lose money on the sale. Ultimately, they come up with a creative solution that involves staging a backyard party to attract potential buyers.

The episode ends with Tarek and Christina awaiting the outcome of their backyard party plan. They are hopeful that this last-ditch effort will pay off and they will be able to sell the house for a profit, but they know that the housing market can be unpredictable. Viewers are left on the edge of their seats, eager to find out what will happen next.

Overall, the fourth episode of Flip or Flop season 1 is a compelling one that showcases Tarek and Christina's skills as real estate investors and renovators. The underwater loan challenge added an interesting twist to the project and viewers will be rooting for the couple as they navigate this difficult situation. The unique features that they added to the home, such as the sunburst mirror and the feature wall, will inspire viewers who are looking to add character to their own spaces. As always, Tarek and Christina's high-stress journey is entertaining to watch and leaves viewers excited for the next episode.