Fred gets a new next door neighbor and is shocked to learn that he is Puerto Rican and planning on opening a junk business of his own. Fred gets upset about the competition and contrives a plan to get the city to condemn his property especially since, Julio has a pet goat.

Fred is up in arms when he discovers his neighbor, Julio's family is visiting and may move out to California. However, things really hit the fan when Fred learns that Lamont has asked Julio's sister, Maria out, something Fred is totally against.

Next door neighbor, Julio, has become a very good friend of Lamont's. With Lamont, spending so much free time with Julio, Fred begins to feel left out and decides to try to be more like one of the guys. However, Fred quickly learns the advantages of having so much free time and no one to hoard in on it.

Lamont and Julio go out one evening to shoot pool leaving a left-out Fred behind to sulk. Fred soon finds himself a witness to a burglary when he confronts two thieves burglarizing Julio's house. Later, Fred refuses to testify and identify the culprits out of fear and a frustrated Lamont and Julio put a plan into motion to get him to, and it starts when Fred's truck is stolen.

Fred and Lamont's TV set is on it's last legs and Lamont considers buying a brand new one, however Fred buys a used color TV set for cheap. Things get out of hand when Fred's friend Grady stops by and recognizes Fred's new set as his set that was stolen. Fred quickly wants an out of the situation and sells it to his neighbor Julio for $50.

Lamont has decided to go in on a partnership with Julio in a used auto parts business venture and Fred becomes convinced that Lamont is abandoning their junk business. Against the whole notion, Fred decides he's not going to stay where he's not wanted and gets a bed at the local mission. Lamont and Julio cook up a scheme in order to lure him back to his home.

While cleaning out the yard, Fred discovers some of Julio's junk on his property and demands that it be removed promptly. Soon, a feud erupts primarily due to Fred, who has a surveyor come over to determine where exactly the property line is. However, what is determined is not exactly what Fred had in mind and sets out to mislead Julio.

Lamont's latest girlfriend, Judy is falling in love with him and likes the idea of settling down someday with the right guy. However, Lamont isn't too happy with that notion and makes up a lie that Grady is his godfather and they'd need his blessing. Judy moves ahead and goes out of her way to shower Grady with her attention.

A Japanese land development company wants to buy out the neighborhood with plans to build a brewery in the area. Fred, holding out gets bitten by greed. Fred's greed is disguised as a "heartwarming" sentimentality and he's using it to squeeze as much money as he can get out of the developer.

Julio's sister and nephew, Carlotta and Roberta, are coming for a visit and Julio has a problem, they are allergic to his pet goat, Chico. Thus, Julio asks Fred and Lamont if it would be okay for them to stay with them. Against the idea at first, Fred quickly softens to them and becomes involved with a problem that Roberto is dealing with at school.

Julio has gotten tired of the junk business and that's when Lamont comes up with an idea, Sanford & Son Salvage should merge with Julio's business. Julio goes for the idea but Fred is against it, but they merge anyway to form Sanford & Fuentes Salvage. However, everyone soon realizes the consequences attached to such a decision.

Lamont has Julio, Rollo and another buddy over for a poker game and Fred has had it with their gambling. Meanwhile, an old friend of Fred's, Al Banks, a professional gambler, stops by for a visit and this gives Fred an idea on how to teach Lamont and his friends a lesson. However, the lesson goes awry and Al runs out with the cash.