By the standards of cable television, the drama is often high — and punctuated by sinking foundations and hidden infestations of things that crawl.Maybe that explains the popularity of shows such as “Flip This House” and “Flip This House, Property Ladder,” both of which follow entrepreneurs who buy run-down homes to renovate and resell.By the end of each show, the property has been transformed, there’s a sold sign outside and someone has pocketed a hefty profit.If only it was that easy, said Gretchen Wheeler, a Millcreek woman who counts herself as a fan of those programs.These days, she and her husband are more than fans of the so-called flippers. They joined their ranks a few months back when they bought a rundown house on Raspberry Street.

That house, now looking fresh with a top-to-bottom facelift, is listed for sale with local real estate agent Suzanne St. John of Howard Hanna Real Estate Services.Because of a slowdown in the housing market, the Wheelers don’t have as much competition as they might once have had, St. John said.”I think it (flipping houses) was more common a couple years ago,” she said. “I think a lot of people just got scared.”The Wheelers have turned their attentions now to a foreclosed house on Chestnut Street that they bought at a sheriff’s sale.It’s both a source of sadness and opportunity, she said, that houses like this one are so easy to find. She said she feels good, however, about the prospects of rebuilding old homes and improving Erie neighborhoods. Sytko Property Services

Some would argue, however, that all the television shows and even the practice of flipping are out of step with a disastrous national real estate market.Some even blame house flippers with contributing to the problem.According to a report in the Philadelphia Inquirer, TLC senior vice president Brant Pindivic, said changes are being made to the shows that will reflect the new realities of the marketplace.”We’ll still be having fun, but the process will be much more authentic and adjusted to what’s happening in the market now,” Pindivic told the Philadelphia Inquirer.

The local reality

As longtime business owners, the Wheelers knew better than to expect the huge profits that seem to come so easily on television. In Erie, where the real estate prices are generally much lower, the numbers aren’t so gaudy.However, the transformations, like the one taking shape Thursday afternoon on Chestnut Street, are no less dramatic.While her father, Hammermill retiree Jerry Funk, worked on partition walls for some new closets, a crew of electricians were pulling wire and cutting holes for new electrical outlets.

By the time it’s all done, this 90-year-old house will boast a new kitchen, tile, carpets, light fixtures, appliances.”We want to have one or two big things that need to be done and no more. On this one we are going to do siding and do windows, Gretchen Wheeler said. She said it would be tempting to start installing granite countertops, but flipping houses in Erie allows for nice, not luxury.”It’s called formica and it looks darned nice,” she said.In the business of buying and reselling houses, it’s not always about swinging a hammer or even holding down costs. Sometimes it’s about seeing past the stained carpets, peeling wallpaper and leaking roofs.Randy Wheeler, who operates a hair salon, said he doesn’t have the gift and said he almost walked out of the first house they remodeled.”She and her dad see the vision,” he said. “I see junk.”

Fixing, not flipping

Funk, a retiree who has signed on to work for his daughter and son-in-law, has bought and sold a number of houses over the years. Just don’t call him a house flipper.

“I hate the word. It’s yuppy and trendy,” he said. “I call it buying and rebuilding.”Call if what you will, but both Gretchen and Randy Wheeler see an opportunity to turn a decent profit in a short amount of time.Unfortunately, however, tax law does not smile on the house flipper.Randy Wheeler, who handles the banking and finance end of their business, said whatever profit they do make is subject to a 35 percent capital gains tax.Still, Gretchen Wheeler, admits she’s hooked on the feel of a sledgehammer in her hands and loves the prospect of turning a rundown house into a place she’d like to live.

http://www.goerie.com/apps/pbcs.dll/article?AID=/20080113/BUSINESS05/801130353/-1/BUSINESS04

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