Each week, the Discovery Channel Property Wars buyers have to make educated guesses on whether or not a home on the auction block is worth the thousands they will have to put into it to make it their own. This week, Ed and Scott were fighting over a home that both believed would make a great rental property.
Scott considers himself the king of rental business, and he is determined not to let Ed squeeze in on his action.
“I love showing Captain Caveman who is boss,” Scott said, following the purchase of the home. “But, if this is not a duplex, I’m in trouble.”
The home in question was listed as a two-bedroom property, but it appeared to be a duplex, with two entrances. Doug did not see the potential in the property, however.
“Dry rot causes the wood to become weak and brittle, which compromises the integrity of the home. It’s going to need at least $30,000 worth of work. These two can play slumlord millionaire all they want; I’m out,” he said, leaving.
Dry rot or not, the home was Scott’s for $21,000.
A Castle with a View
Doug did not care for the "duplex," but he was interested in a 5,700, 4-bedroom home that he described as a “castle.” It appeared to have no issues—from the outside, at least.
“A custom-build million-dollar home can make or break a buyer,” John Ray explained. “Inside, it could be a complete freak show, with everything painted black and carpeting on the walls, which could cost thousands to replace.”
With an opening bid of $725,000, who was willing to roll the dice?
Ed took the gamble, winning the home for $768,600—and needed it to pay.
And, it did.
Projected Profits, Projected Losses
When Ed and business partner Steve opened the door, they were greeted not with a freak show, but perfection. Between the tile floors, unbelievable views and four-inch thick granite countertops, as well as a home theatre, the projected profit on the home was $396,400.
The home Ed lost to Scott turned out not to be a duplex after all—and it was in horrible shape, as Doug had indicated. Nasty, even. After it was all said and done, Scott’s “win” over Ed turned out to be a projected loss of $30,100.
And, on a third property, John spent $260,200 on a 2687 square-foot, 3-bedroom home, to reap a projected profit of $25,800.
Some days are diamonds in Phoenix, and sometimes it doesn’t pay to be the king of rentals.
Property Wars airs on the Discovery Channel on Thursday nights at 10/9c.
Image: Discovery Channel
Video: Discovery Channel/Property Wars