In this video, real‑estate investor, mentor, and broker Joe Holmes tours a 1930s single‑story home in Palm Springs that includes an added upstairs room and a separate downstairs rental unit. He emphasizes the importance of physically inspecting a property before buying, then walks through the main unit, noting its small living room, tiny kitchen, two modest bedrooms, a cramped bathroom, and a simple paver‑tiled backyard. He proceeds to the lower unit, describing a tiny kitchen lacking a dishwasher or sink, a possible one‑bedroom layout, and limited finishes. Holmes explains that he originally pulled comps from the nearby, higher‑priced Nykler neighborhood, which led him to expect a resale value around $800,000, but the property is actually listed at $550,000 in a less desirable area. He highlights the mistake of using incorrect comps and stresses verifying location and condition on‑site. Concluding, he states the $550,000 price is a hard pass for him, sharing the lesson that accurate comps and thorough walkthroughs are essential for successful house‑flipping investments.
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Hey, welcome. My name is Joe Holmes. I'm a real estate investor, mentor, and broker, and we're in Palm Springs right now. And I just wanted to come here and look at this property because the comps came in at a really good value. I thought it was in a different neighborhood than it ended up being, and that's point number one— always come and take a look at the properties you're going to buy. Number 2, we're going to take a look at the property inside and we'll do a quick look around and you'll see what I mean at the end of the day. So very important to always come take a look at your properties that you're going to look at flipping. So come on in. This house was built in the '30s and once you get in here you're going to see, you know, this typical— it's very small living room. Built in the '30s, we're on a raised foundation so That means that these are wood floors underneath here. The kitchen's really small and not much you can do with it. You've got actually a door that goes into another room over here that I have no idea what you would do with this room. It looks like maybe, I don't know what, a dining room, I guess. And then this door leads outside to this room. So if you look to the right, you'll, you'll know that this, this was the original outside of the house. And so they've obviously added this room on here. So I don't know where it goes or what it does or if it's just a room. And then this, this goes out to the backyard there if you want to go out and take a look at the backyard while we're here, and then we'll come back and look at the rest of the house. So pretty plain and simple backyard, no grass, um, you know, paver tiles basically all over the place. Okay, so then we go through here and we've got a bedroom here. Small bedroom. Okay, and then we've got another bedroom over here. So we've got 2 bedrooms, and then we're back to the living room area. But wait, what about the bathroom? Oh yes, we passed right by the bathroom. Let me go back here a little bit and I'll show you the bathroom. So here's, here's a beautiful bathroom. It's Kind of a tight fit, especially the shower, like really tight fit. You got this faucet coming off the top. I don't know what the original floor plan was or what it looked like, but anyways, this is what it is. I came because there's actually another unit underneath, and we can, we can go. I'll get the lockbox out and we'll go take a look at that one since we're here. We're pretty much done with this one, and then we'll talk about price and, um, what would you do with something like this? Okay, so if you want to Give me a minute, I'll go get the key and we'll go downstairs. Ready? Okay, so anyways, we're at the second unit. It's right behind the first unit, and from what I'm looking at, it goes underneath the first unit. So as you come in, you'll see that there's a bathroom upstairs, and then you literally come onto a landing and start walking downstairs. And watch your head when you go down here. You can see these bars. It may be— it may have been used as a prison before. I'm just joking. I'm just joking. So you got a kitchen down here, really small kitchen. So obviously they've decided just to rent this out. Air conditioning. And what do we have here? We just have, we just have a room here. That's kind of cool. You can see that it goes to the outside there. So if you want a window, you have a window there in this room. So it looks like maybe just a 1-bedroom. I'm not sure. There was something back here. Maybe there's another Another bedroom back here next to the kitchen. So you got a kitchen, you don't have any dishwasher, you don't have any sink, so you're missing all that stuff. But then yes, we do have another bedroom back here. It's gonna be one of those cool windows there. Looks like something, something else there. I don't know what it is. Okay, so let's talk about Price and why it got me out here. It got me out here because literally the neighborhood 2 blocks over is what's called the Nykler neighborhood, and they're single-story, built in the '30s type homes, very expensive. So I think what happened is I, I'm pulling comps from that neighborhood over into this neighborhood. This is priced at $550,000. I thought that, you know, if it was something like that, I could sell it for at least $800,000 or more. But obviously, this is what we ran into. And this is a great point in making sure that when you do your comps, you do them correctly. And then you actually go out to the property to look at it to make sure that you're buying something that you're going to be able to Rehab and sell at the end of the day. And if you want to take a quick trip around here, I want to show you the steps, which is a beautiful job of what they did on the steps there. They're just, you know, they're so coordinated, nice and level. Yeah, there's, there's a lot of love and effort put into this house. Yeah, at $550,000, it's a hard pass for me. But anyway, thanks for joining me. I appreciate it, and I'll see you on the next video.
