February 7, 2010

Target Framing plus...New Site Coming Soon

We had a really wet and dreary week but I still managed to squeak in some good showings at The Neighbor’s House and get started on the interior reframing of Target House. I had initially wanted to jump straight into some work on the bobcat grading the backyard for the room addition but the weather just wasn’t on my side. It’s nice though to see the existing house all opened up and our floorplan changes really make the home modern and functional now. It was a big deal for me to commit to not having arches throughout this project as I’ve become really attached to them as most of you know, but with the prominent existing built-in having a square cased out opening, the arches would have clashed majorly. After framing up all the openings this week I am really feeling the square lines now, another good call from our architect, DeWitt. Our website is going through a major transformation as we speak, behind the scenes of course. My new site will be a Wordpress custom theme designed by Ben Cope, The Internet Genius. Big shout out to …jp at REItips.com for hooking me up with this guy. Our new site will be a true blog and allow interaction with our visitors through RSS feeds, comments and also be way easier for us to do our updates. With a full work week and toddler it was getting really hard to keep up with our web updates so now this should make our (my wife’s) lives much easier. Stay tuned for the new site and more updates!

January 31, 2010

It's Officially Done!

The Neighbor’s House is finally done and officially on the market (in MLS). On Friday we took hundreds of photos for our marketing campaign and web content. My favorite parts would be the master suite, having hardwood floors in the master bath, the cool Samsung fridge and of course the river rock shower floor. This house really came out good and all the concrete work and driveway gate really makes it a complete package. I got it in the computer late Friday night and this weekend we are already getting calls and have had offers. We priced the property at $389k and are marketing it heavy as a 2 on 1. Total square footage with the rear house included is 2,630 and if we used our recent comp of $175/s.f. it would put the value at $460k so I think our pricing is fair. The extra value that rear house adds should push us close to this new price level if we find the buyer who needs it. We sold the house next door for $340k in 5 days, $175/s.f., so I think our pricing here is in line although it’s quite a bit higher than most comps in the area. As I mentioned before there was never any sales over $285k for these historic homes in our farm so what we are doing is really outside of the box and drastically changing the neighborhood. We are buying at such a low level and with low construction costs it enables us to come to market with a superior product and at an affordable price, as replacement costs for one of our projects would be much higher than our asking price. Plus, who would want to live through a remodel of this caliber? Our success has been derived from offering a quality high-end remodel in an inner city neighbor and knowing that there are young professionals who work downtown and want to live close that will gladly pay for it. I compiled some pics so you can see the finish out as well as a new YouTube video that documents the whole rehab and shows what we went through along the way.

My plans are finalized for our next project, The Target House so we’ll be pulling the permits this week and weather “permitting” ha ha, getting started grading the back yard with the Bobcat in preparation for the addition. As we all know, The Spring buying season starts right after football season ends and it’s right around the corner. Additionally there are over 3000 more medical officers moving to San Antonio from February to May that will be stationed at neighboring Fort Sam Houston due to B.R.A.C. and most of these soldiers will be buying homes in our area. We have a great product and are ready to see how this plays out; we’ll keep you posted!

January 17, 2010

The Descrescendo

The Neighbor’s House is basically done now minus some small touch ups but we’ve been plagued with more bad weather so it’s dragging on. You can see the before and after is really dramatic and I am really looking forward to getting it on the market. I got an automatic driveway gate installed last week as well and boy is it sweet! This week I passed all my final inspections so all that’s left now is to have the gas company come out and install the new meter. Since the line will be underground I foresee a little touch up in the backyard after they are done. We’ll hopefully be staging the house at the end of this week and getting started shooting pictures for our marketing. One neighbor mentioned they want the house for 350k but I think we are going to test the waters a little higher for a few months since we are heading into the best time of year to sell a house. After all, it is a 2 on 1 so if we can find the right buyer that needs the extra apartment in the back then they’ll pay a premium for this house. I’ve spent all my time this week remodeling the rear unit with a full new “basic” kitchen, drywall patching, texture and complete interior paint. It’s really been a decrescendo to go from the cool main house to this garage apartment rehab but its all gotta be good. We have a lot of value here with this rear unit and its presence will be why we get a higher price yet still than we got for the house next door.

Last week our website was featured on Jim The Realtor’s blog, www.bubbleinfo.com. For those of you looking for a great housing market blog for San Diego, Jim Klinge’s is the best one out there. He brings you unbiased front line info on what’s happening in So Cal with no typical Realtor spin so we follow it religiously. He’s one of the top agents in S.D. and has also been featured on ABC Nightline and in the LA Times so getting a spotlight by him was really an honor. If you are looking for investment property in San Diego give him and his team a call.

We’ve been working closely with our architect also on plans for the Target House. We are doing some cool new things so I am really excited to get over there full time after our current house is on the market. There will be major floor plan changes since I gut the entire house and have that option. I am taking the front bedroom and opening up the space to add it onto the living room similar to what I did on Hat Trick. We’ve gone through several changes on the new addition but now I think I’ve got it nailed down as it includes all the things I wanted for our remodel: vaulted master suite with master bath, walk-in closet, food pantry, inside utility area, dual vanities, spa tub, shower, water closet and last but not least a double-sided fireplace between master bedroom and Jacuzzi tub! It’s going to be sick, can’t wait to frame this puppy up!

January 3, 2010

Moving Forward Slowly, Holiday Delays

I want to wish everyone a Merry Christmas and Happy New Year. Thanks for checking out our house flipping blog this year and a special thanks to the 6000+ returning visitors who find our content interesting and have returned regularly. In this first full year with the website we received over 23,000 new visitors. It’s great to get the comments also; we enjoy the questions and feedback. 2009 was a great year for our company, especially with the success of our project “The Hat Trick House”. It was probably my favorite renovation to date and we set personal records in several areas on this house. In the process we also were able to buy the house right next door “The Neighbor’s House” and are 99% complete with that big rehab and looking forward to an early Spring 2010 sale. Our third and last big deal this year was the purchase of a house we’ve been after for years, “The Target House”. I’m all set roll into 2010 with this big historic renovation as we’ve already handled the demo and foundation leveling so stay tuned if you like house flipping and Craftsman style homes.

I’ve somehow managed to stay busy through the Holidays and have at least some sub contractors show up at Neighbor’s House. As you might have heard from Twitter, the first attempt at the floor refinishing was a bust. The guys had to re-sand them all down again after the stain and clear coat wouldn’t dry due to the weather conditions and did some weird stuff. They really know what they’re doing but I think he was just in a rush and trying to pull it off before Christmas so he could get his final payment. This put us back a week on having the Energy Star appliance package (all stainless of course) delivered but they finally came and wow, what a Cadillac the new Samsung refrigerator is. It’s a grand more than I usually spend but we required a counter depth model for this kitchen design to flow properly. Really nice. I also managed to do most of the landscaping while the floor crew kicked us out, I threw up about 150 feet of fence and brought in 4 yards of top soil, some river rock and 4 pallets of sod. With my energy efficient theme on this remodel I decided to use Bermuda Tiff turf grass instead of St Augustine as it requires way less water and holds up to this Texas heat in the summer. Of course I know all grass is dormant this time of year and arrives brown from the grass farms but it still sucks to put down brown sod and not to get that initial “new yard” look like the summer. The A/C guy stopped by and installed the compressor but the heat isn’t on yet until I can pass finals on Electrical, HVAC and Plumbing and then have the power company come out and set the new gas meter. I am doing a killer driveway gate again this time but this one will be automatic. Should have been installed “before Christmas, I promise” but hopefully it will come this week. Land of Manana here again in good ole SA as a lot of Hispanic workers go to Mexico from Christmas to New Years to be with family. A cool old guy stopped by this week from the area, an 87 year-old millionaire investor. He had heard of me through some local Realtors and came to introduce himself personally and see my work. Of course I love listening to seasoned pros, he told me of a land deal that netted him a million bucks in 3 months time. His parting words were: “There’s one out there for you”, very motivating.

December 13, 2009

Wearing Out My Welcome

It was a crazy week now that we have two projects in progress. At “The Neighbor’s House” we are winding things up and are having the floors refinished while the concrete guys are pouring 1500 s.f. of driveway, 2 patios, an A/C pad and flatwork around the room addition. With all the mess over there I’ve now received disgruntled phone calls and threats of calling the cops about the workers having to stay so late finishing the concrete. I feel like an unwanted houseguest that comes and stays at your house for a week. At first everyone is glad to see me, has remodeling questions and loves what I’m doing for the area, but add 3-4 months of random work trucks parked in front of their houses, mud everywhere in the street and a constant mess and noise and all of a sudden it’s not so cool and the animosity starts to set in. Understandable though, I’m sure it’s annoying. It was really difficult to pour concrete this time because the cold weather delays drying time and the days are shorter now that it’s winter. They’ve had the forms and rebar down for almost 2 weeks and we keep getting days on end of misty cold rain. After finally having four trucks dump about 30 yards, the finishers ended up having to stay until midnight using lights…temps were in the low 40s and it wouldn’t dry fast enough to smooth. That was a particularly bad night for neighbors, I hate having to do that. On the inside, the floors are coming out great as the crew has gone through 3 sanding stages, wood filler and a fine screening to smooth them out. The stain goes on today so I am anxious to see the extra dark walnut stain we’ll custom mix. Can’t wait until they are done so I can install appliances and then it’s down to the final stretch of small punch list stuff and I can get off this street, its time to go!

Over at “The Target House” we broke ground with the demo this week with the help of some day laborers and tore out the entire house in one day gutting every room completely down to the wood and removing both the kitchen and bath. Additionally there was a dilapidated garage and apartment in the backyard that took 2 more days to take down by hand. I had planned to rent a Bobcat to knock it down but it ended up being cheaper to just pay the laborers to do it. Going through someone’s old personal stuff in a garage really lets you get to know them, weird. We found pictures of the house from Christmas 1991 in perfect condition, crazy how 20 years of deferred maintenance can take its toll. Now that the demo is done, the next step is I’ll have my foundation guy get started leveling the house. Our architect is currently working on plans; I have some great ideas for totally changing the floor plan around as well as adding about 1000 s.f. onto the back of the house. We’ll do a walkthrough soon and show you how we are changing things around for the renovation. Several of the other interested parties who didn’t get the house have stopped by this week seeing the demo underway and inquiring about our plans.

November 29, 2009

Bullseye! - "The Target House"

We’ve been “targeting” this house for well over a year after finding it in one of our secondary farm areas. It’s not in our favorite Mahncke Park, but along the Broadway corridor closer to downtown, the River Walk Extension Project and the hot Pearl Brewery revitalization area. While it fits our overall financial investing criteria, additionally it also stays with our current model of taking historic houses close to town and turning them into better-than-new special homes for the young, hip and trendy urbanites. Over the past year we’ve sent numerous letters to the homeowner as well as left notes asking if they wanted to sell the house (see video). The elderly owner never wanted to sell the home and didn’t answer any of our correspondence but when he passed away a relative came into town and gave the listing to the first Realtor sign they saw which happened to be a few houses away. The listing agent had the home priced accordingly for its extremely poor condition but even at asking price in the high 130’s we knew it was a great deal.

After seeing it hit MLS late on Thursday night after I got home from work I called the listing agent and scheduled a showing for the next morning and had her write it up. You have to monitor MLS everyday to grab the good deals when they pop up, another day and this puppy would have gotten snagged. For anything in MLS we always write our own offers and take the 3% commission but for the $3900.00 we left on the table it was worth it to let the listing agent double-end the deal as from our experience it *somehow always increases your odds of getting an acceptance. After she wrote it up I pressed for her to present it to the sellers that very day which was Friday the 13th so we wouldn’t get into the weekend and have more offers come in. Our strategy worked and just as we received the signed contract evidently the rest of the city awoke to the offering and other agents were calling disgruntled because they didn’t have a shot. You snooze, you lose! The neighborhood that this house is in is very small so there’s not much turnover or recent sales comps. For as close to downtown as it is, it’s fairly stable and walk-able. All of the SOLD comps have an average price of 275k but go back to 2004. Average price for all ACTIVES now on the market, (only 3) is 335k. It’s only because we knew our area so well and have an accurate handle on what’s going on that we were able to jump so hard and fast. By looking at the numbers it’s going to pay off, stay tuned, as I’ll start the restoration after Christmas.

November 22, 2009

Paint, Cabinets and Granite

The “Neighbor’s House” is now painted inside minus some small touch ups. Additionally I got the cabinets in and countertops installed this week. I buy the pre-bullnosed granite slabs fabricated in China and with the help of a friend we put them in ourselves saving big money. It ends up costing me $12.00/s.f. for what everyone else charges $50/s.f. for. I intended to post a “how to install granite countertops” video for everyone but my memory card was full yesterday when we were installing so I had to settle for a few single images. Maybe next time I’ll get to film the install for everyone as it’s really not that hard to do. As you can see we also dropped in the farmhouse sink from Ikea. It’s easy to retrofit any 36” sink base cabinet to accept it, you just have to do some measuring and cutting. All the tile is done and the glass company came and measured for the frameless heavy glass door for the master shower. All that’s left now are some small projects before I can get the floors refinished after the holiday weekend. I’ll be going really dark again on the stain since the floors got such great reviews on our last project next door. The concrete guys are showing up weather permitting this week to start on the driveway. The house itself should be done soon but we still have the landscaping and light renovation of the rear guesthouse to do before the project is complete. Last week we bought another historic house for a big renovation, we close on it this Wednesday so at that time we’ll get over there and do a walk through video to show you what we have planned. Stay tuned and Happy Holidays!

November 8, 2009

Building Materials Are Like Fashion

The interior is getting close to paint. I’ve hung all the doors and trimmed everything out using MDF this time. The finish out is really going to be slick so I’m excited. The master bedroom closet got a little more love this time with trim. I’ve also been busy getting some of the tile done. Picking building materials is like fashion, you have to know what’s new and in style but also know when to use it. Everything is always changing and you have to keep up with what’s new. While it’s all really still subjective, there are new trendy materials that are becoming very popular and incorporating them can set your house apart from all the other inventory therefore increasing the likelihood of a quick sale. I frequently look at design magazines and go through custom homes to keep up to date on what’s cool. You know that colored ceramic and glass tile accents are hitting big time when you can now find them at Lowe’s. While our specialty size ceramic wall tile is of course special order, the glass accents are Dal Tile and came from The Home Depot. Up until last year you couldn’t get the colored glass tiles at the big box stores, we used to have to special order them or get it online. Picking the right materials can really make or break your rehab. It really sets apart the pros from the Joes. There’s nothing worse than walking into a rehab that just looks like a flip.

When I am doing a major renovation there are a few very important features to try and incorporate to maximize retail sales price. In no certain order they are: Master suite (master bath is connected to master bedroom), dual vanities in master bath, walk-in closet, indoor utility room and food pantry. To be missing one of these items would be a huge mistake in my opinion.

My cabinets are now on order as well and should arrive before Thanksgiving. I am using Kent Moore here in Texas and they are full custom Maple and made to size with no filler pieces. I picked an off white shaker style that goes well in historic homes. For that high end custom touch, all the bathroom vanities, linen cabinets and laundry room cabinets in the whole house will match and for the bathrooms we will be using the 34” high new style vanity that you don’t have to bend way over for when brushing your teeth. We’ve used these before and it’s amazing to see how many buyers walk through and notice the vanity height.

The house was scheduled to be done December 1 but since there’s no rush to get anything on the market during the holidays I’m planning to take my time with all the details and landscaping so we can hit the market after Jan. 1. There have been buyers stopping by every week so we’ve got interested parties lined up, and as always I like to focus on that last 10% of the project because that’s where most house flippers drop the ball and how we make our houses sell for top dollar.

October 25, 2009

Still Painting and San Antonio Ranks #1 Strongest Metro Economy

Even though we were plagued with more rainout days this week, I still managed to get the exterior paint 95% complete. This is probably the most labor-intensive paint job I’ve done as it’s 6 colors and it entailed a lot of detail brushwork on the trims. So far I’ve put up over 60 gallons on the exterior! Keep in mind there’s a big 2-story guesthouse in the rear and I also sprayed 2 coats of everything including primer. As you read in my last post, I picked up a guy from Lowe’s parking lot to help me paint so it’s gone really fast. This guy is actually a great painter, he was making fun of me for using economy brushes so I broke down and bought a Purdy brush, man this thing practically paints by itself. Well worth the $14 bucks.

Because I was so happy with my historic craftsman style replica window screens on the last project, Hat Trick House, I decided to make them again for this house. I changed the design a bit so they wouldn’t look exactly the same, especially since the other house is right next door. I designed the center mullion placement to minimize the visability of the white vinyl and this new design came out great. I won’t stretch them with screen, although the future owner can if desired. My new double pane windows have screens already so these frames are basically just a cosmetic design feature that also plays an important part in the color blocking of our paint job. The historic replica screen hangers are also still available from Stanley. This extra little finishing touch really gives the house the historic look that I need for our neighborhood.

There was a new BusinessWeek article this week that ranked San Antonio #1 for the top National economy. The measurements used were job growth, economic growth, employment and home prices. Texas seems to be the clear winner with San Antonio in the lead and five other metros in the top 10. While we are still seeing signs of the recession here and I’m always quick to say we are late to the party, this study shows that we are still fairing extremely well compared to the rest of the country. We’ve seen the housing market here drastically slow down in the last 2 years, but homes are still selling and people are still moving here everyday from other states so we have to be thankful that when coming from California, we picked a winner with San Antonio.

October 18, 2009

Skyy Vodka Bottles and Purple Stairs

Things finally started to dry out after all the rain we had, so I got the texture crew in last weekend and as luck would have it, pouring rain again all day. Geesh. It took 3 days for the texture to dry with 90% humidity. It finally dried and looks incredible so I proceeded with spraying a good primer coat and ceiling paint throughout. I was at Lowe’s buying the exterior primer and met this guy in the parking lot asking for work, I’ve had him helping me everyday to speed things up and he’s actually turning out to be a great helper. We spent 4 days just caulking, scraping and filling holes on the house in preparation for the paint job. The weather cooperated at weeks end so we made a huge impact with spraying the entire house in a day. We got 2 coats on the soffits and body of the house, accounting for 2 of the 6 colors planned. I still have all the time consuming trim brushwork to do, which is really going to be the important part of this color scheme. Our façade designer for this project Morgan Penix at DeWitt Architects really picked some unique colors, which I initially had a hard time grasping, but now I’m finally starting to see her vision and am loving how it’s looking. The dark rich columns with rust accents will make a bold statement against the soothing earth tones on the body of the house, all done in historically correct flavor.

The 9th Annual Mahncke Park Home Tour was today so my wife and I had the chance to mingle with some neighbors and enjoy a diverse mix of 6 inspirational and eclectic residences. We saw some great gardens, tons of personality and very cool historic craftsman bungalows. Adorned with unique features, incorporated artwork, bright colors and highly personalized, these homes offered something we never get to do in our designs with resale in mind. We saw green painted hardwood floors, claw foot tubs, blooming esperanzas, purple staircases, garden borders made from Skyy Vodka bottles and mosaic tile galore. Three of these unique homes belong to artists and included studios, fun workshops and galleries. The tour was a great success and Mahncke Park proved again why it’s THE coolest and most hip place to live in San Antonio for the artistic urbanite.

Interestingly though all of the homes on the tour this year are currently for sale where in past years it was not allowed for any of the participating homeowners to use the tour to promote the sale of their homes. Is this a sign of the times or what? Seems even in our small niche neighborhood we are not immune to the higher inventory levels and general real estate market slow down that finally caught up with San Antonio last year. At any given time last summer in Mahncke Park there were only 2-3 homes for sale and now there are currently 10 on the market.

October 4, 2009

Raining Hard, SA Housing Market Slowing

I had my framing inspection Monday and he passed me on the room addition but failed the new front porch because I had trimmed it out already and he couldn’t see how it was framed…oops. He said he would pass it with a letter from an engineer so I had to pay 300 bucks to have my engineer crawl in the attic to verify my framing was done correctly and draw up a certificate on it. I went straight into hanging all the insulation and called in for the insulation inspection Tuesday. The same inspector showed up the following day and passed me on that. Meanwhile I had all the drywall delivered. It turned out to be 150 sheets for the room addition, kitchen and existing bath. Man, prices on drywall have come down; I only paid 6.50 per sheet for 12 footers. My drywall crew hung it in a day and went straight into tape and float over the weekend. It’s coming out really nice as it’s always a cool stage to get to when you can see it all sealed up and smelling new. My drywall crew charges 10 bucks/sheet to hang, tape and float and texture. Since the existing bedrooms were not demo’ed I am retexturing the whole house so it will match. These guys are real pro; they do mostly new construction so the seams come out great. For texturing they don’t mix in a hopper, a truck with a mixing machine actually shows up and they spray the whole house with one batch so it turns out consistent. Drywall finishes and textures can make it or break it when it comes down to your final product so it’s important to get pros to do this part. In the past I’ve done small rooms myself but now that we are on a larger level I always sub this out. I also got all the wood floor patching done which included all new wood in the kitchen and I also ran it into the addition. I even put the wood floors into the master bath, which will be new for me this time and should be a real dramatic touch. With all the rain lately (6 inches in 1 night) I feel lucky that at least I’m making progress inside the house. After being in a record drought all summer now we get hammered with flooding, crazy weather here in Texas.

The local San Antonio real estate market continues to slow. So far this year we’ve had only 13,185 homes sold compared to the same period last year of 14,724 and 17,981 for 2007. Last year was the big slow down here when a lot of Realtors went starving. Things picked up a little this summer mainly due to the $8000 first time buyer tax credit so it will be interesting to see what happens to the real estate market if they let it expire. There’s a bill in Congress to raise the credit to $15,000 and open it to non-owner occupied buyers which would be great for investors and definitely clean up some inventory, but I’m not sure how we could pay for it. Foreclosures at the courthouse steps here in SA are also still rising, I ran across a Realtor friends’ house while reviewing the auction list for this month. Ouch, now that’s hitting close to home. Our strategy for this market is as always be extra careful on location, buy extremely right and offer a high quality renovation and unique product for the price level. Even with the slower market there are a lot of people continuing to move here to San Antonio and we only need one buyer.

September 27, 2009

Inspections Passed, Next On Deck Insulation & Drywall

The skies cleared and the inspection gods have blessed our project. Finally, we passed all 3 rough-in inspections. We had to have the mechanical inspected twice and he almost failed me the second time because I had the incorrect tape on the joints of the dryer exhaust vent. The correct taping for the seams is the UL rated aluminum tape with the red letters, same as the A/C guys use. After some word games and a battle of the egos he busted out the green card much to my relief. It always seems the young inspectors have such a chip on their shoulders while the old guys just roll through, pass you and start talking sports and telling stories. Since I pulled the main building permit myself as the owner/builder then I am in charge of the next 2 inspections. First I’ve called in for framing inspection Monday for which the City of San Antonio will look at the placement of the fixtures with relation to each other, framing and construction as well as fire blocking of all penetrations from wiring and plumbing and foaming of the windows. Once I pass this framing inspection Monday I’ll be free to hang the insulation and call in for insulation inspection for Tuesday. If you hire a company to insulate your new construction they will furnish you with a certificate that will satisfy the city but because I am such a penny pincher I hang it myself which thereby requires them to come inspect. I buy the insulation wholesale saving about 30% from what Home Depot or Lowe’s charge. Once I pass insulation inspection I am finally free to drywall! Yea buddy, whew! You’ll also see on the video update that I’ve trimmed out the front porch and removed all the kitchen hardwoods due to old water damage and poor patching. I need to get the new wood patched in also before drywalling the kitchen but that won’t take long. The original wood floors in my house are red oak, which is still available through lumber liquidators for .45/ foot. All 330 feet of wood I am replacing only cost me about 700 bucks. Once the floors are refinished you wont see the patches. I am planning on the dark walnut stain again since they seem to be so trendy now. Stay tuned; next time you see the house it will be all sealed up. It’s a big milestone, what was previously stick framing all of a sudden becomes recognizable defined spaces.

September 23, 2009

Land Of Mañana

Our great start is now officially over. It’s the “Land of Mañana” again here in good ole SA. Plagued with bad weather and sub-contractor delays we can’t proceed with the drywall until we pass these inspections. A whole week has gone by and I am still waiting for an inspection on electrical and re-inspection on HVAC. I’ve heard every excuse in the book, it comes down to the sub contractors taking on any work they get and dragging everybody out. With the slow construction season coming they won’t dare tell anyone “no” now. Once I pass these rough-in inspections the pace will pick back up as it will all be on my shoulders. I did manage to trim out the front porch while I was waiting for inspectors (who weren’t coming) so now the house is ready for some primer. My square tapered columns came out great as planned. Our architect came through with a rendering from which we made our yard sign in order to start our marketing campaign and hopefully avoid paying a realtor fee once again by procuring our own buyer.

September 12, 2009

CSI and Rock Stars

I had my first theft at the jobsite this week, someone came in the backyard after hours and stole my 45 dollar extension cord. Since it’s been raining all week the thief left some good footprints when he tracked mud onto the driveway. I’ve taken photos, made castings and measured the prints and concluded the perp is a size 8. This happened the night before I installed the exterior doors and locks so we’re Fort Knox now if he decides to come back for a second helping of construction materials. My bad for leaving it out anyway. Before the rain started this week I got all the #117 siding on the room addition and the front of the guest house, also building a cool balcony deck. The rear unit is turning out swell and will make someone a great rental unit, granny flat or at home office space.

I failed my mechanical rough-in inspection this week due to multiple small items that my sub-contractor overlooked. They left off a little insulation on the copper and also drilled through the furnace exhaust vent with a small screw when strapping it in the attic. Additionally they “forgot” the secondary overflow from the drip pan under the coil. It’s hard for me to believe he can still keep failing inspections for basic stuff as we’ve gone through this so many times and he knows what needs to be in place to be legit and pass. I never saw him personally in the attic during the job…maybe that explains it. The inspector also called me out for my placement of the dryer vent from the laundry room. The V in HVAC stands for ventilation. When he comes to inspect the rough-in of new heat and a/c equipment he also looks at the dryer and hot water heater vents even though my a/c sub-contractor has nothing to do with these items. I have the dryer vent placement about 2 feet from the back door and he said it is a fire hazard to leave it that close. It needs to be a minimum of 3 feet from any opening to meet code, chalk that one up to another learning experience. Also, keep your dryer vents clean, there is a serious fire risk from lint build up and it reduces energy waste. I also handled the hall bathroom subfloor on Friday and set the tub Saturday morning.

After my regular electrician burned me on the last project I was back to square one getting bids from new guys. 3 out of the 4 bids were twice as much as I usually pay. I ended up finding a good price from my plumber’s referral and the guy rocks, literally. This master electrician is also the lead singer in a local San Antonio Judas Priest cover band called Sad Wings of Destiny. He can hit Rob Halfords’ lyrics note for note. Still waiting for him to bust out while we are working.

August 30, 2009

I Love the Smell of PVC Glue in the Morning

Saturday morning the plumbers beat me to the punch. I got there at 8 and there were already 6 guys all over the place and a strong odor of PVC glue in the air. My plumber brought in a new construction crew and they roughed in the whole house with a complete new system in 1 day! Monday he’ll run the new gas line and we’ll call in for an inspection Tuesday. This week I also opened up 3 interior walls creating more of an open floorplan, doing a different kind of arch this time with square corbels on the bottom. Monday the roofers finished and he apologized for trying to raise the price on me? o.k... I also wrapped the house with Tyvek and installed all the dual pane vinyl windows after they arrived midweek. I remember about 10 years ago putting in my first set of retrofit vinyl dual pane windows in my personal home, a buddy of mine who is actually a general contractor told me not to ever use foam because it would cause the windows to warp when the foam expands. This was in San Diego where it’s always 75 and sunny and probably wouldn’t matter but here in Texas it’s the code and the homebuilders foam everything including the new construction windows inside before the drywall goes in. You want to create a tight envelope in order to be more energy efficient. With these new windows, a high efficiency A/C, roof vents and new insulation in the attic the future homeowner will benefit greatly with a low power bill. Our buyer of the Hat Trick House next door has a electricity bill in the $100’s while most other original homes in the area are paying around $300/month. Hey don’t get me wrong; I love original sashed historic windows with wavy glass, but not at $300 per month. While doing the new windows I also went ahead and also redid the wood trim because for the cost and labor saved in stripping and sanding, my paint job will come out killer now. Next up to bat will be getting HVAC and Electrical sub-contractors through the house, we’ll see who I can corral this week. We are moving at a really nice pace, I’ve scheduled it so I can be doing projects while the subs are busy without getting in their way.

August 23, 2009

Milking the Clock

We had a big week 3 on the Neighbors House project. Monday I passed inspection for my foundation so we ordered materials and went straight into framing the master suite room addition Wednesday. When laying out the floor joists I had the option to grab an extra 15 square feet by not cutting down my 16 footers and additionally we cantilevered the sills out and ended up with extra footage along the rear thus making our addition just over 700 s.f. instead of the planned 620. The framers kicked ass and got it done in a day and a half. I also had the stucco guy do the column bases for the front porch during the week. For the roof I went with my favorite 30-year composite shingle but since there were “Estate Grey” roofs on either side of this house (one being Hat Trick House) I had to choose another color, Driftwood. It’s really bizarre to flip two houses right next door to each other. Not only will I get to use my sales comp but also get the carryover curb appeal. My roofers showed up Friday and really got off to a slow start, it’s really disappointing to see someone intentionally dragging something out. Turns out the workers were being paid a day rate instead of a contract rate. After turning up the heat on my subcontractor he quickly changed their pay scale to per square pricing and they really started working, it was like I was looking at a different crew. These clock milkers had the nerve to ask me to buy lunch for them Saturday, I told them where they could go… to find the closest taco shop. The roof didn’t get finished due to the time lost so they’ll be back Monday to wrap it up. This week I’ll take care of the interior framing and arched openings and then its time to run the sub contractors through there for HVAC, electrical and plumbing to work towards the big milestone of passing rough-in inspections on all 3 of these trades.

August 16, 2009

Week 2 Update Neighbors House

After completing the bulk of the demo last week my main goal has been towards getting the new roof on. I always start with the new roof first (and foundation if needed) on any major remodel so if there were any leaks previously it wont trash any new stuff going in. Before I can get the roof on this house, I have to add the porch and room addition so it’s been my main focus to get these taken care of first. I had to move the gas meter back 40 feet from the house but luckily the power company showed up Monday and obliged so I got started with no delay. The porch came out really good as it completely changed the look of our house. In this historic neighborhood everyone loves the big front porches and they are an important feature in order to maximize retail sales price. I mimicked the original house design with the 30” eaves and open rafter tails. There are about 10 different Craftsman style home models in our neighborhood but unfortunately this one doesn’t come with the traditional porch so we knew we had to add it. The rear addition is the major change of this house, it will be approximately 620 square feet and contain a utility room, master bedroom, master bath, hallway and walk in closet. Once again to obtain maximum retail sales price these are things that today’s buyer will expect. We will also be giving them a walk-in food pantry and double vanities in the bath, all popular amenities to consider when given the opportunity to remodel. I was fortunately able to design around the big pecan tree so after we are done I plan to do a cool deck around the tree with a circular bench and French doors leading from the master suite. We’ve gone through 6 dumpsters so far, 3 being filled with dirt from the excavation I had to do with the Bobcat for the addition. Monday I have an engineer inspecting my foundation and issuing a certificate, which the City of San Antonio requires for our permit and then we’ll be free to start framing. Do you want to learn exactly how someone pulled down $155,510 his first year Flipping Houses in a recession? Visit our friend’s blog and see. Congratulations bro!

August 9, 2009

Nice Surprises

This first week of getting started on “The Neighbor’s House” has revealed some nice surprises. As we were doing the demo in the kitchen we noticed all this new Romex wire, turns out the whole house has already been rewired so this will save me some money. I will still rewire the kitchen and have to add some circuits for all the recessed lighting but having everything new already is a huge plus. I had my foundation guy over and we went underneath and discovered it really only needs some shimming to bring up a couple of corners an inch or so. The main thing is making sure the rear of the house is perfectly level before we do the addition so it lines up well. We also spent 2 days taking off all the fake brick and shingle siding. I had assumed the original siding would be wrecked and had budgeted to replace it but low and behold the original waterfall historic wood siding was in clean perfect condition underneath. It was like unwrapping a Christmas present, only one coat of paint on it and smooth as a baby’s butt. This is going to be a breeze to paint, no grinding years of peeling paint jobs.

Probably the most dramatic surprise is the original fireplace chimney design we found underneath the faux brick. It’s really cool and nothing like the other houses on the block. I had my stucco guy come redo it this weekend so it’s back to its historic original condition and is going to add a nice detail to how our new façade will eventually look with the new front porch; stoked. I also had the power company out this week to move the gas meter back 40’ for the room addition. We might be waiting 2 weeks for them to get around to it so that kinda sucks as I wanted to get working on the new piers for the addition but we can’t bring the bobcat back there until the gas meter is moved. We also can’t do the new roof until the room addition and front porch are framed up so I am stuck until we get that gas line capped off.

August 2, 2009

July 29, 2009

"The Neighbor's House" New Project Starting August 1

While working on the Hat Trick House this summer we were networking with all the neighbors and thus landed our new project right next door, appropriately tagged: The Neighbor’s House. Had I hired out all my remodel work like most investors and not been on site everyday working I wouldn’t find these bonus deals. Just like last year when we flipped the Craftsman Bungalow one block over and found the wholesale deal across the street for 50 cents on the dollar, Bungalow 2. This shows that it pays to network with the neighbors and keep your eyes open when you are doing your rehab. Our farm area is virtually a hotspot within the San Antonio real estate market and there is literally no inventory in MLS, much less an abundant supply of fixer-uppers with enough upside to fix and flip. This is our 6th non-MLS deal in a row, which demonstrates two things, the first being, the best purchases are the ones not in MLS and when there is little or no competition and the second being that you can always find a deal if you are willing to go out and get it. It’s kinda like fishing; you wouldn’t expect the fish to jump in your boat, would you? If you are a serious investor you cant rely on working with Realtors and buying stuff from MLS. You have to leave your cave, go out and kill something and drag it back.

Directly next door to Hat Trick was a nice little bungalow with an elderly single lady who had expressed interest in selling to us one day. That day came sooner than later when she called me just as we were wrapping it up next door and asked if we could move forward. We actually signed the contract with her the day we closed on the Hat Trick House sale so the timing couldn’t have been more perfect. Furthermore, being given the opportunity now to have another investment property right next door to the highest comp in the whole neighborhood that we just finished will allow us to use Hat Trick as a sales comp when we go to sell this house later this year. This new project will also be a complete gut remodel down to the studs with added square footage. It’s currently a 2/1 so I’ll be adding another bathroom and new master bedroom addition with walk in closet in order to get top price on the resale. Our biggest challenge on this project will be designing the master suite room addition to wrap around a huge 100-year old pecan tree in the backyard. As luck would have it, it’s smack dab where ideally we would have the room addition. Taking down a cool tree like this is taboo so we are going to work hard to design around it as long as our floorplan doesn’t suffer. As you can see the façade of the house is in need of some help, I have big plans for a new front porch and gable with new craftsman style square columns and all new historic waterfall siding to give it the charm that everyone is looking for while keeping it historically correct. We are also helping the seller move into her new house this weekend as a good deed and expecting to start demo Monday so stay tuned for more rehabbing fun!

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