Patrick sees a commercial starring Nick Fishkins, who says he will buy anyone's house. Patrick thinks that means he wants to buy his house. Patrick tells SpongeBob he is going on a "forever hike," and informs him about the commercial. SpongeBob kindly invites Patrick to come and move in with him and Gary. Inside SpongeBob's pineapple late at night, the commercial appears yet again causing SpongeBob and Patrick to shriek. They decide to run away and end up living behind the Krusty Krab, where they choose to turn in for the night.
Squidward wakes up feeling weird stating that he "normally wakes up with a feeling of dread," but today he feels unusually happy. He walks to work with a rainbow over his head and sings and dances about how great he feels. He then gets to work and says hello to SpongeBob, which makes him realize why he was so happy: because SpongeBob was not there to annoy him.
Both SpongeBob and Patrick, meanwhile, have created a makeshift house out of garbage and begin acting like hillbillies. They explain what is going on to Squidward, who asks why they didn't just use the money that Nick Fishkins gave them to buy new houses. SpongeBob realizes he never got paid, but decides he is content in his trash "house." Squidward tries to explain to them that Nick Fishkins doesn't really want to buy their houses, but decides to leave them be as to him having a flashback about a rainbow smashing both their houses. He leaves to them stating that they have just been "Fishkined" and returns to work.
The next day, SpongeBob drinks some corn and Patrick dumps the contents of a garbage can on him as a "shower." Mr. Krabs is repulsed when he sees SpongeBob and says he looks like he has just slept in trash, which is correct. SpongeBob tells Mr. Krabs he lives outside the Krusty Krab now, and the red crustacean becomes furious due to SpongeBob's "home" being on Krusty Krab property. He tells SpongeBob he will have to use his paycheck money to pay for his trash "house," to which SpongeBob replies he didn't know being homeless would be so expensive.
That evening, SpongeBob shows a little sadness because he misses his old neighborhood. He and Patrick decide to visit their old homes after work. Squidward, wanting them to stay at The Krusty Krab, lies that a German family with about twelve children has moved into SpongeBob's pineapple and a rock band with about eight members who have lots of instruments and equipment with them have moved into Patrick's rock. SpongeBob says he can learn German and Patrick says he can learn what "learn" means, and they decide they will go anyway, assuming they will be let in anyway if they "ask nicely."
Back at home, Squidward is shocked to see SpongeBob knocking on the door to his pineapple house. He knows that SpongeBob thinks a German family lives there now and decides he has to do something quick. He goes to his closet and throws on some different clothes, then sneaks through SpongeBob's back door. When he answers the front door, he looks just like a German man. SpongeBob greets Squidward, "Guten morgen!" and then begins to speak fluent German. Squidward is amazed by this, but requests SpongeBob to speak English as he is "trying to learn it." He says his name is Gerhard. SpongeBob then barges in and asks where his wife is. Squidward says his wife is very shy. At the same time, Patrick is knocking on his rock, so Squidward makes SpongeBob sit in a chair and not move. He says he will be right back.
He runs to his house and puts on a rock band outfit, then sneaks into Patrick's rock without the starfish seeing him. Everything goes fine, until Patrick asks him what instrument he plays and Squidward answers "electric clarinet." Patrick does not think there is such a thing as an electric clarinet and demands proof of its existence. As Squidward is getting his clarinet and an amplifier, he hears SpongeBob calling, wondering where he is. So Squidward has to leave his musical equipment at Patrick's rock, but forgot to change his outfit.
When Squidward returns, SpongeBob thinks he is Gerhard's wife, Hedwig. Squidward changes his voice and says he is. He feeds SpongeBob some food (which is actually trash), but then remembers Patrick. He kicks SpongeBob outside and says this meal is "to-go," and sneaks off again. Being naive, SpongeBob assumes that this is an outdoor concert, and hopes that the twelve Fishtrapp children will be singing to him as he eats. Back at Patrick's rock, Squidward plays electric clarinet for Patrick, successfully proving to him that it is a real instrument. In fact, Patrick likes it so much, he suggests he give lessons to "his ex-neighbor, Squidward," as he stinks.
Patrick leaves and joins SpongeBob on the sidewalk as he eats his dinner. Squidward puts sock puppets on his tentacles, posing as the twelve German children, who all pop out of the house and sing a short song before going back in. SpongeBob comments that the youngest one was off-key. Squidward suddenly decides he's had enough and jumps out of the house with the puppets still on his tentacles and says he made everything up. He then tells his neighbors that Nick Fishkins does not actually want to have their houses; he only wants to buy them temporarily, flip them, and sell them for a profit. He then angrily walks back inside his tiki house, and says he wants to move away.
Of course, Patrick and SpongeBob misunderstand what Squidward meant. They decide that Squidward's house needs flipping, which causes an attempt to literally "flip" his house with Squidward still in it. It lands hard upside down, and one of the windows break. At that moment, Nick Fishkins just happens to be driving by, and declares Squidward's house a wreck. He also says it is "not sold." Squidward pops out of the top (what used to be the bottom) of his house and asks who just drove by, and what he said. After the two reply that it was Nick Fishkins and repeat what he said about Squidward's house, Squidward says he can't believe they did that and they both say "You're welcome!" SpongeBob and Patrick return to their old houses, and Squidward's house crumbles as he groans "Ach du lieber."