Reno blitz: makeover for maximum gain! 14 July 2003 Reporter: Amanda Paterson
Renowned for their real estate know-how, renovation kings Geoff Doidge and Paul Eslick share their money-making secrets on ACA this week. Over the coming five days, we'll join them step-by-step as they offer tried-and-tested tips on how to achieve the ultimate makeover for maximum capital gain!
With a combined property portfolio of more than $20 million, the Reno Kings know what they're talking about. Rotting walls, holes in floors and cracked driveways are no obstacle to this pair, who are famed for their knack of turning dumps into dollars.
Their latest project — a neglected five-bedroom Queenslander — would be most homebuyers' worst nightmare, but for Geoff and Paul it's the stuff dreams are made of. They claim they can fix it up in four weeks and make a lot of money. And that's exactly what owner Dennis Backhouse plans to do.
"We bought this place for $170,000, we're spending about $25,000 on the renovations and I anticipate it will be worth close to $300,000 when it's finished," says Dennis.
Despite the brown rooms, purple walls with yellow ceilings, a mint green lounge and windows so rotted they're literally falling out of the termite-eaten walls, Geoff and Paul are confident they can get the job done and that Dennis will be able to pocket a tidy profit.
Mother-of-two Tanya Smith has also been bitten by the renovation bug, after being inspired by the Reno Kings three years ago. The 36-year-old says her goal is to eventually own and renovate 50 houses. Now, her portfolio stands at 11 and is estimated to be worth $3 million.
Currently, she's working on a house she bought for $310,000 and is hoping to boost its value to around $550,000 after she completes the makeover.
Fellow renovator, 31-year-old Mark Galvin, is also well on his way to financial freedom. His goal is to own 20 houses and retire in four years time.
"I work in sales, I earn about $30,000 a year, I own three properties and they're worth about $550,000," he says.
When Mark bought one of his houses, about an hour out of Melbourne, he paid $140,000. It was riddled with mould, had been attacked by vandals and resembled a hovel. But the Reno Kings showed him what to do and after spending $35,000 fixing it up, it's now valued at $260,000 — a capital gain of $85,000 for just a few weeks work.
"If I do it right, I can make between $300,000 and $500,000 a year!" says Mark.
So the ACA "reno blitz" challenge is on — can Geoff and Paul pull off the impossible, spend next to nothing and still make a fortune by creating a swan out of Dennis Backhouse's ugly duckling?
