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Could The House That Broke the Realtor be in Charlotte

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Services for Real Estate Pros with 203kOnLine.com, covering the USA S0289

Could The House That Broke the Realtor be in Charlotte

It started with a ringtone that sounded suspiciously like a horror movie violin screech. Fitting.

“Mike, you got a minute?” the voice on the other end said, already wheezing like he’d just sprinted across a football field. It was Gary, a well-meaning but high-strung realtor I’d worked with on and off for a few years.

“What’s up, Gary?”

“I’ve got a house—no, a situation. I’m standing in it right now. It’s... it’s bad, man. Like a horror film, bad. Have you ever seen ‘The Haunting of Hill House’? Multiply that by termites and a '70s wallpaper fever dream.”

I chuckled. “So, a standard fixer-upper?”

“No, Mike. I’m telling you—this is beyond fixing. This is, like... one of those ‘call the bulldozer and burn sage’ kind of homes.”

“You thinking tear-down?”

“That’s what I told the buyers! But they asked if they could use one of those FHA 203k things you’re always talking about.”

I paused. I already saw where this was going.

“And you told them what exactly?”

“That it’s not eligible. It’s too far gone. I mean, it’s missing half a kitchen. The basement smells like Bigfoot’s armpit. There’s a toilet in the living room, Mike.”

I stifled a laugh. “Gary, you just described a textbook 203k opportunity.”

“But... it’s missing a roof!”

“And that’s why we have 203k loans.”

Gary went silent for a beat. I imagined him looking around the house, haunted by the ghosts of his own bad advice.

“You mean... this thing can be financed?”

I leaned back in my chair and smiled. “Let me tell you a story, Gary. About a house we called The Slanty Shack.”


A few years ago, I got a call from another realtor, also convinced he had just found the worst house in America. Built in the 40s, sat vacant for years, and had been the subject of at least two amateur paranormal investigations, the place was a disaster.

The front porch tilted so far forward you could’ve parked a skateboard on it and watched it roll into the street. The windows were nailed shut with what looked like chopsticks, and there was a literal raccoon squatters’ union living in the attic.

I met the buyers on-site: a young couple full of hope and Pinterest boards, armed with a dream and zero clue what they were walking into.

“I love it,” the wife said, stepping over a mummified squirrel.

The husband nodded. “It has... potential.”

The realtor, meanwhile, looked like he was having an existential crisis in the corner.

But here's the thing: they had vision. And they had me, a 203k consultant who knew the ropes, the codes, and how to translate “disaster” into “dream home.”

We wrote up a solid scope of work. We brought in licensed contractors. We made sure every repair, from structural to cosmetic, was accounted for. We submitted the HUD consultant package, the lender got on board, and guess what?

Four months later, that moldy raccoon hotel was transformed into a beautiful, modern, three-bedroom home with hardwood floors and energy-efficient everything. The raccoons even left a goodbye note (okay, maybe not, but I swear I saw one wave as it left).


Back to Gary. I could hear him breathing through the phone, slowly taking it all in.

“You’re serious?” he asked.

“As a heart attack. The primary purpose of the 203k loan is to repair homes that others may avoid. Missing roof? Covered. Funky layout? We’ll fix it. Kitchen in shambles? No problem. The only thing that disqualifies it is if it’s so bad it can’t be brought up to FHA minimum standards—after repairs are complete.”

“But... what about the toilet in the living room?”

“We move it.”

“And the black mold?”

“We remediate it.”

“And the squirrel skeletons?”

“We call an exterminator, and maybe an archaeologist if it’s ancient.”

He laughed nervously. “I told these people to walk away. I told them it was hopeless.”

“Well,” I said, “go call them back. Tell them you just talked to Mike Young, and he says this house was made for a 203k.”


Fast forward three months.

I walked into what used to be “the house so bad not even termites wanted it,” and was now a stunning Craftsman revival with subway tile, custom cabinets, and solar panels on the roof.

Gary greeted me with a firm handshake and a sheepish grin.

“You were right,” he admitted. “I had no idea you could do this kind of thing with an FHA loan.”

I gestured around the room. “Most people don’t. That’s why I do what I do.”

The buyers came in behind us, glowing with pride. The wife handed me a thank-you card. Inside was a hand-drawn cartoon of the house before and after, complete with a smiling toilet waving from its new home in the hallway bathroom.

“Thanks for seeing what we couldn’t,” it said.


Moral of the Story:

If someone tells you a house is too bad for a 203k loan... they probably don’t understand the loan. And that’s okay—because I do.

There are no haunted houses—only untapped potential.

And occasionally, raccoons.

Posted by

Mike Young, 203k Team Leader    Mike ready for your 203k order

Explore the FHA 203k loan program at www.203kOnLine.com. Streamline your 203k underwriting process with our quality software for consultants and lenders - call 877-207-6565 for more information.

If you're a renovation contractor seeking new opportunities, list your business for FREE at renovationcontractors.us for their FREE listing. 

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Comments(16)

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Peter Mohylsky
Property Management International-Destin - Sandestin, FL
Call me at 850-517-7098

Nice story,  I am glad the buyers were happy in the end.  Lots of work and I hope it was worthwhile in the end.  :)

Jun 11, 2025 08:28 AM
Mike Young

Thank you, Peter, we appreciate your comments.

Jun 11, 2025 08:46 AM
Pat Starnes-Front Gate Realty
Front Gate Real Estate - Brandon, MS
601-991-2900 Office; 601-278-4513 Cell

I love it! And I love fixer-uppers. Great story-telling. You have a gift. Actually, you have two... the gift of gab AND the power of a 203B loan fixer-upper.

Jun 11, 2025 08:49 AM
Mike Young

Pat, HUD once told me I was the largest 203k consultant in the USA. Thanks for leaving a comment. 

Jun 11, 2025 08:51 AM
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Mike and thank you the great information in your blog on this Wednesday.  Make it a great rest of the Week.

Jun 11, 2025 09:06 AM
Mike Young

Will, thanks for the kind words. Glad you liked it.

Jun 11, 2025 09:13 AM
Leanne Smith
Dirt Road Real Estate - Golden Valley, AZ
The Grit and Gratitude Agent

Great story and learning opportunity. Thank you 

Jun 11, 2025 01:26 PM
Mike Young

Leanne, I'm finding these stories seem to resonate with many of our realtor partners. Thanks for stopping by.

Jun 12, 2025 06:57 AM
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

Hi,  Mike Young  

   The FHA 203K!  It's been a while, but I did several of those.  None of the houses I closed on approached the condition of the house in your story, but they were houses that definitely needed repairs.

   As I recall, the program is similar to a Construction Loan.   The Lender doles out enough money to purchase the property (Close), then they give the equivalent of draws as the work progresses.

    Thanks for the reminder of a good loan program for those who can see past the "Tear Down", and visualize a nice home to live in!

 

   

Jun 11, 2025 04:11 PM
Mike Young

Yes indeed, Fred. They have their place. We have added bedrooms and bathrooms where the inventory was low and the clients couldn't find exactly that they needed so they created it. 

Jun 12, 2025 06:59 AM
Dr. Paula McDonald
Beam & Branch Realty - Granbury, TX
Granbury, TX 936-203-0279

Wow, what a story and experience. Crazy this was financed! 

Jun 11, 2025 08:01 PM
Mike Young

I've completed over 6,000 renovation projects where I was the on-site consultant, and we've only found one that couldn't be done as a 203 (k) very early in my career. Today, I have even figured out how I could have done that one. 

Jun 12, 2025 07:01 AM
Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

Hello Mike - where some see problems, there are those who see opportunities and solutions ready to be visualized.  And that's not just real estate reality show shenanigans.  Your 203K financing expertise comes in handy.  Once again.  

Jun 12, 2025 02:44 AM
GilbertRealtor BillSalvatore
Arizona Elite Properties - Chandler, AZ
Realtor - 602-999-0952 / em: golfArizona@cox.net

I love the subject line. Have a super fantastic week!

Bill Salvatore, Realtor- Arizona Elite Properties

 

Jun 12, 2025 08:28 AM
Mike Young
203kOnLine.com, covering the USA - Hickory, NC
FHA 203k Consultant 916-758-1809 cell direct

Hey Bill, good to see you again. I thought it was catchy. LOL

Jun 12, 2025 08:30 AM
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Good afternoon Mike,

I love this story!! So entertaining and creative. My daughter-in-law did a  203K before she met my son when she was single. I was so impressed with her tackling this by herself but what a darling place she created and they still have it as a rental on the East side of Austin and it has gone through the roof with appreciation!

Jun 12, 2025 11:32 AM
Mike Young
203kOnLine.com, covering the USA - Hickory, NC
FHA 203k Consultant 916-758-1809 cell direct

Dorie, thank you for stopping by and leaving a comment. We appreciate you.

Jun 12, 2025 12:47 PM
Debra Leisek
Bay Realty,Inc Homer Alaska - Homer, AK

I wish you lived up here! We could keep you very busy! I enjoy your posts, Good Humor with a get it done attitude! Thank you!!

Jun 13, 2025 02:07 AM
Mike Young

Thank you for your kind words. We do have an associate in Anchorage. He is about 219 miles from Homer. Steve Mehring.

Jun 13, 2025 08:51 AM
Debra Leisek

You do? That is interesting! Who is it? If he is ever in Homer he should stop by! Thank you Mike Young 

Jun 14, 2025 01:16 AM
Jan Green - Scottsdale, AZ
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

What a great, entertaining story!  As a 203K specialist, you're the perfect solution for homes in that state of disrepair for the right, patient buyer.  It takes a specialist as the terms are different.  Understanding it is key if it's explained with all of the details.  Good for you!   The best part, by using all Energy Star appliances, the energy savings can be taken into account as well, lowering future cost of ownership!  If an energy audit is completed as well, the energy savings is shared with the lender.  The proof is in the energy audit details!

Jun 16, 2025 10:01 AM
Mike Young
203kOnLine.com, covering the USA - Hickory, NC
FHA 203k Consultant 916-758-1809 cell direct
Good idea but appliances don't count. We can count new windows, insulation, though.
Jun 16, 2025 10:24 AM
Mike Young
203kOnLine.com, covering the USA - Hickory, NC
FHA 203k Consultant 916-758-1809 cell direct
Good idea but appliances don't count. We can count new windows, insulation, though.
Jun 16, 2025 10:24 AM
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

What a great post!

Both humorous and educational.

I have long known about FHA 203K loans but have not been involved in a situation where one was used. But...never say never.

Jun 17, 2025 09:32 AM
Mike Young
Thank you Sir, I appreciate your comment. It is a sleeper product. I have completed over 6,000 inspections with my boots on the ground. I did it by educating Realtors to the benefits of renovation loans. This is from adding a room, adding a ADU, updating their purchase, adding a room as you didn't have any 4-bedrooms home on the MLS so you sell them a 3+bedroom home and put on a new master suite.
Jun 17, 2025 10:15 AM