Season 1, Episode 5

Underwater Flip

Tarek and Christina spot a gorgeous family home in an upscale neighborhood in Cypress, CA. They tour the house with their contractor, Izzy Battres, to see if they want make an offer, and are pleased to discover that the house has a large open floor plan, a downstairs bedroom (perfect for an older family member or a nanny), a bonus family room as well as a large designated office space upstairs. However, Izzy begins to point out troubling signs of water damage that cannot be thoroughly investigated until they own the house, because it will mean ripping into walls. But Tarek and Christina think a home like this could sell for over $700,000, so, even in light of their contractor's warnings, they decide the potential profit margins are worth the risk, and they get the house for $490,000. Construction begins and they quickly discover that the water leaks have created a severe case of black mold, and the rehab costs skyrocket. Will the costs of fixing this mess eat onto their profits, or will leaking pipes leave them underwater?
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