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Modern Bungalow Sold $765,000

The San Diego real estate market is on fire right now, home prices in my area are up 20% over last year and in nearby neighborhoods like North Park 92104 there is only 1 month of inventory at the current sales pace!  It’s putting a real damper on the local house flippers as they are having trouble finding properties to rehab. 3 guys I personally know are going to Phoenix, Las Vegas and Palm Springs to find projects.

I reactivated my California real estate license just in time to actually list my own house this time. Strategically, I put it on the market on a Tuesday to give everyone time to react before an MLS advertised double-open house weekend. The strategy worked out perfectly, by the open house we already had 3 offers to work with. In this market its common to have 10-15 offers within the first few days, but this is generally true for entry level houses or high demand markets in the suburbs. By leaving the house on the market a whole 8 days, I felt it gave adequate market exposure yet didn’t irritate any of the first buyers by waiting too long and playing the game.

We had a specialty product for a very special buyer, in an inner city neighborhood where median sold home prices are in the low 500’s. To illustrate the market appreciation this year, when I bought this vacant lot I calculated a house built there would have sold for $629,000 based on comps. Half way through the build there were 2 comps at $685,000. By the time I was done we had sales comps in the low 700’s for remodels, not new construction, so I put a value on the home of $750,000. Not having a back yard was a definite negative so I had to price this in. You know that the seller does not set the sales price, the market does. A house will sell for whatever a buyer is willing to pay. Furthermore, houses are not sold, they are bought, so listing agents don’t “sell” houses in my opinion.

I used value range pricing and listed the house at $749,000 – $799,000. The first offer came in at $710,000. The second at $749,000 and a third at $750,000. When the smoke cleared, and after everyone had a shot to go higher, we countered the strongest buyer of the 3 offers and they came up to $765,000, or $413.50/s.f.

Listing this house and getting it under contract was the easy part, getting SDG&E to install the gas meter so we could close would prove to be the hard part and took almost 8 weeks! Our wonderful buyer hung in there so we finally closed today, congratulations to the new owner and we hope you enjoy the home as much as we did building it. Here is a start to finish video that shows the whole build, these are always fun to watch. Next project coming soon..

Apr 10, 2013 | 18 comments | View Post »

Modern Concrete and Floor Redeux

What a difference a week makes. Our new hardwood floor refinishing guys came in and did an incredible job on the Modern Bungalow in South Park. Instead of the usual rag on, rag off method for applying the stain, these guys used a lambs wool applicator and drug the stain across the floor. Of course we did not water pop the wood first this time!

The stain came out perfect the second time around, no spots or blotchy areas and this application method actually left more color on the wood. After the stain dried they did 3 coats of semi-gloss clear, buffing in between coats. I’m really happy with the results, this is how Golden Pecan on Red Oak should look, it gives a modern loft feel.

Here is the finished product on the floors, finally I am back on track now. The cabinet finishers are coming in next to stain the uppers to match and paint the bases, island and bathroom vanities.

The weather finally cooperated enough to get most of our hardscape in this week. I poured about 20 yards of flat work. The modern design I created will lend itself well to my overall theme, the driveway area was so large, so by cutting it up I brought the space more into scale. Stay tuned for the finishing stretch after the holidays & Merry Christmas!

Dec 22, 2012 | 3 comments | View Post »

Construction Update – South Park

Just over 4 months since I poured the foundation on our Modern Bungalow, we are making progress over in South Park, walk through with me and let me know what you think. The grey interior colors might appear a little soft but don’t let that fool you. Once I get the warmth from the hardwood floor refinishing, and my bold surprise cabinet choices, it will all work. I’m moving straight into tile now and concrete flat work outside. My electrician is trimming out and we just passed the meter inspection Friday so I can call SDG&E now to get the power moved from my temporary pole to the house. Have a Happy Thanksgiving and thanks for following!

Nov 17, 2012 | 15 comments | View Post »

SP2

Here’s a Sneak Peek of the new build we are doing in South Park. Rough framing is now complete, roof on, Milgard aluminum windows in, plumbing done, HVAC almost complete, next up is electrical and fire sprinklers then I can call for the big “rough-in” City inspection.

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Sep 08, 2012 | 20 comments | View Post »

South Park Plan Revisions

We just went through some major building plan revisions for the South Park Modern/Craftsman house that we are building this summer here in San Diego. I could have already had building permits and started construction but after sitting with the City and having to compromise I just wasn’t going to be happy with the end product, so I opted to go back to the drawing board and with the help of my great designer we came up with something we both felt is way better. There’s so much to learn on new construction and what the City of San Diego will and will not allow, I’m chalking this one up to builder school and moving on. It only takes 8 business days to get your plans routed through Developmental Services downtown, then they give you a list of changes for your plans, luckily they are now hiring more staff after years of cut backs and lay offs.

The newly revised design, now close to 1900 s.f., is larger than neighborhood standards. Downstairs the kitchen, living and dining rooms are linked to create an open and continuous public space where guests can roam freely and have easy access to bathroom facilities under the staircase and enjoy fluid movement between indoor and outdoor living spaces via the bi-folding rear patio doors. This new design also makes more room for outdoor living space with 13′ of yard before the cantilever deck on the canyon. Light and vertical space make any room feel larger so with the 10′ ceilings downstairs and abundance of morning and afternoon light, the space should feel very comfortable. The facade is a sophisticated blend of traditional Craftsman style with a Modern influence. The bubble framing for the staircase windows on the driveway side creates a fun and whimsical touch for this hip and eclectic neighborhood.

The 2-car garage is now over-sized and attached to the house with an adjoining mud room/utility room with full size connections and the HVAC closet. I pulled it 4′ off the side property line to give the City required side set back since its an attached garage now, detached garages can sit right on the property line in my area believe it or not.  All private spaces are nicely separated upstairs with an open gallery at the top of the staircase, 2 secondary gracious sized bedrooms and shared hall bath. The large master suite above the garage has a bonus sitting area and secondary set of stacked washer/dryer connections and then steps down into the bedroom to allow higher vaulted bedroom ceilings.  Our East-facing master retreat will get great morning light and has a walk-in closet and really cool master bath with dual vanities, water closet and a wet room feature which includes the stand-up shower and spa tub not separated by a divider wall, behind frame-less glass doors and with casement windows looking down into the canyon. The wet room design is really en vogue right now in bathroom design and works great in small spaces.

May 17, 2012 | 6 comments | View Post »

Cedar Crossroads

Right on track we are moving into the interior paint job on our Mid Century Modern renovation. Up top on the Cedar tongue and groove ceiling, I was at a crossroads this week with regards to what product I should use on it after all that work sandblasting it raw. Cedar is a soft wood with natural tannins in it, so any oil based poly or urethane would certainly make the wood darker which I didn’t want to do. There were many options such as linseed oil, wood wax, polyurethane, acrylic sealer, Danish oil, etc. Also some thick poly’s will yellow over time and darken the wood. I ended up using Satin Deft Acrylic Wood Finish from Home Depot. I sampled this product also in semi-gloss and gloss but it came out a little hazy for my liking. I couldn’t spray the Deft Finish and get enough penetration so it had to be applied thick with a roller and then back brushed in order to get into the open grains.

It came out really good, highlighting the natural color and grains and doesn’t look too plastic-like or shiny. The walls are also now in primer with Glidden PVA drywall primer. We are applying it with a 1/4″ nap roller and then sanding between coats in order to keep our smooth texture and not add roller stipple.  On the walls I’m going with Decorator White by Behr this time in flat for the whole house, except I’ll switch the sheen to satin in the kitchen and bathrooms.  With my wood ceilings and floors there’s no chance of the house looking too sterile with the white walls. Next up we’ll be spraying all the interior doors and trims with the color Sherwin Williams Snowbound in semi-gloss. The beams in the house now have the first coat of Behr Olive Leaf in satin on them as you can see. The dark green next to the natural reddish Cedar is really contrasting and looks dramatic and especially period correct.

My new stucco guy came this week to do all the patching around my aluminum windows and doors we put in as well as scratch and brown coat the front of the garage where we covered the existing paneling. After 2 days of showing up after 9 am by himself, he finally brought in a helper and they knocked it out. I look to hire sub contractors who are there at 7:30, bust ass all day like we do, and not drag it out. There are really 2 kinds of contractors out there, the hard working, taking care of business hungry guys and then the ones that seem to drag everything out and want to make small talk with you all day.

When he opened his air compressor line to bleed out the tank on my new driveway I almost lost it. You guys who have air compressors know that the air inside the tank is usually oily and rusty and will stain anything it drains out on. There is a job site etiquette that most guys follow but this guy clearly doesn’t see the big picture. When I called him out on it he mumbled something about it being a “flip” to one of my workers, as if that puts my job in a different category of service from him. Don’t get me wrong we have fun at work but I don’t think I’ll be using this guy again no matter how good the price or end product is. This year I am really concentrating at building the best team possible which will make my business run smoother for the future. It’s a continual battle, first you find sub contractors and then you start switching them out for better ones. Like anything else, the good sub contractors are always busy. The B grade ones will usually be the guys you find first.

Don’t forget to tune into my interview on Blog Talk Radio Monday night at 8 PM PST hosted by Jim The Realtor. You guys can actually call in to the show using the 1-800 number if you aren’t too shy or type me house flipping and design questions live. If you miss it we’ll have a podcast available after the show. Here’s a link to listen live tomorrow night:

http://www.blogtalkradio.com/jim-the-realtor/2012/02/14/tom-tarrant-on-btr-with-jim-the-realtor

Feb 12, 2012 | 11 comments | View Post »

Mid Century Modern Concrete

Well I wish I had some images of cool flat panel cabinets, modern fixtures, new hardwood floors, glass tile back-splashes and shiny new objects but first things first. Normally, I do the concrete flat work last but since its part of the structural scope of this job I wanted to get it out of the way so when I get inside and start patching I know nothing is going to move.

We removed the entire garage floor, driveway and even part of the City sidewalk due to the Pepper tree roots. Once the floor was out we fixed 6 cracks in the stem wall and then removed 6″ of soil to make room for the new thicker slab. First we laid down plastic sheeting for moisture and then 6″ of clean sand to prevent possible expanding soils to pop up the new floor later. Finally we doweled #4 rebar into the existing house foundation, stem wall and all perimeter concrete flat work securing it with epoxy. It took 25 yards of the best 2500 psi big rock concrete you can buy and 6 finishers but we completed the pour in one day.

The big exterior load bearing beam was also rotten from water damage. Looking around the neighborhood at the same floor plan houses, a lot of homeowners just added a post and cut the long beam off. I wanted to really retain the original look of the house so we rebuilt it as it was originally done. I’m probably the only one on the block that has it back correctly now. This beam was a 4″x12″x26′ and weighed 400 pounds. It only cost 200 bucks and was easy to replace once we broke the stucco and supported the roof with a temporary wall. Windows, exterior doors and garage door are all on special order. The new roof is coming next, believe it or not I haven’t even done demo yet inside, stay tuned we’ll eventually get to the shiny new objects!

Jan 13, 2012 | 6 comments | View Post »

New South Park Project

Great news this week, we are going New Construction in South Park and building a killer brand new Craftsman Bungalow for ourselves on a canyon lot. I dug this deal up straight ninja style, no MLS listing, no For Sale sign in the yard, just some driving for dollars, looking up the owner on the tax rolls, a cash offer and we closed 5 days later. A build-able vacant lot, with utilities, in popular South Park is virtually unheard of. You’ve seen us do some Major bungalow transformations such as The Hat Trick House, The Neighbors House and The Target House but stay tuned and see what we’ll build given the opportunity to start from scratch and build one for ourselves! Plans are in the works, I’ll show you guys soon our design ideas. Stay tuned, 2012 is off to a great start!

Jan 07, 2012 | 9 comments | View Post »

Ready for Blast Off!

Here’s the house design I came up with for my new Mid-Century Modern project. As you can see I’m breathing some modern life into the great house while leaving the original lines untouched. All these materials I’m adding really play well with the space-age architecture of the 1960’s and should hit a young, hip & sophisticated buyer perfectly. I love this style house, American culture was obsessed with space travel in the 1960’s and it showed through in a lot of house and furniture design. Some of the interior fixtures like the Sputnik Light I’m considering look like something out of George Jetson’s house. My big change to the facade is the tongue and groove Cedar siding that I’m strategically placing in the center, the stained Cedar warms up the stark white modern stucco and sterile aluminum windows and garage door, while still following the horizontal planes of the original architecture. I’m going frosted glass on the front door with a little more matching wood on the frame to tie it in. The house numbers and front porch lights will also be brushed aluminum to add a nice finishing modern touch.

I did a walk through video also to show the scope of work. Evidently we’ve started to develop a little bit of a following here in San Diego for our home remodeling, 2 interested parties have already emerged and showed interest in buying this home when its completed. As we get in the home stretch anyone is welcome to come see it before it hits the market. Demo started today on the garage floor and driveway, stay tuned and follow along as we get into some Mid-Century Modern fun for 2012. Happy New Year!

Dec 31, 2011 | 17 comments | View Post »

Painted Lady Open House

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It’s finally done! Green Button Homes presents: “The Painted Lady” for $499k, she’s a 5 bedroom, 2.5 bath, 2044 s.f. 1909 Victorian Gingerbread that we totally restored over the summer. There’s nothing like this property in San Diego right now on the market for the price. I’m having an Open House this Sunday October 23rd from 1-3 pm. If you are in the market or just want to see the project please feel free to stop by after the Charger game. The address is 405 27th Street 92102 in Historic Grant Hill Park. Here’s a walk through video from Jim The Realtor, he’ll also be onsite Sunday to assist any potential buyers. I’ll post more pics, back stories on the property and a before and after video soon.

*Realtors, we are showing this fine property by appointment only. There is no lock box onsite. If you have a buyer and want to schedule a showing please call Jim Klinge (760) 434-5000 or myself at (619) 565-7475. See ya Sunday!

Oct 21, 2011 | 26 comments | View Post »

Concrete Jungle

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What’s an urban restoration project like without adding just a tad more hardscape to blend in with the mass expanses of paved metropolitan living? There is always a danger of adding too much concrete and having your house look like a parking lot but I think I pulled it off and managed to give the new owners a place for 4 cars to park securely while also enhancing the landscaping design with the sweeping walkway around the side yard. After receiving multiple bids in the $5 – $7  per square foot range, I managed to pull off the 22 yard pour for just around $3.75/s.f.

There was a block wall that was cracked and leaning over out front so we formed and poured around it after some reinforcing with rebar. Once I crack off the forms we’ll give it a swipe with spec mix for a sanded stucco finish to match the foundation walls. I thought this was a good quick fix as opposed to demolishing everything and having someone stack a whole new block wall which technically would also have to be permitted with the City. Inside this week, we also stripped all the paint from the 100-year-old staircase after deciding it will look better in its natural redwood state rather than painting it with all the trims.

Aug 27, 2011 | 8 comments | View Post »

Got Trim!

My special order interior doors from Home Depot came in so I jumped right into trim carpentry all week so I could get one step closer to painting the inside of the house. As you saw last week, my hardwood floors went in first, after protecting them with rosin paper I then trimmed out the entire house on top of the floors (baseboards, doors and door casings). That way you don’t have to notch the floors around door jambs and casings or undercut everything and you actually get the wood floors under the baseboards for a better finished product. I am using the same style door as on the Target House called “Riverside” from the Masonite Anniversary Collection. They are a 5-panel raised profile that look good with historic homes. These hollow core MDF doors are cool and are fit within my budget at $80.00 each for the complete pre-hung door with jamb. I also bought matching door slabs for the bedroom closet sliders so everything is consistent. You get to choose the finish on your hinges so I ordered chrome again so I can use brushed nickel knobs and still match modern chrome bathroom and kitchen hardware. They come pre-primed so after everything is installed, caulked and holes filled I will spray them along with all baseboards, window trims and closet shelving in place then lastly, apply the wall color with brush and roller.

For those of you do-it-your-selfers out there, here’s a good trick for ya. Install one side of the door casing with the door on the ground, then tip the pre-hung unit into place and secure it with the finish nailer. Afterwards go to the other side and install the door casing. This is way faster and easier than hassling with shims and battling it for an hour to get it straight. This is how the pro’s do it so give it a try next time you’re hanging doors and you’ll never use shims again. For my door casings I used square profile MDF in a 1 x 4″ to match the original period mouldings that would have been in the home.

I had to go with the huge 1 x 8″ baseboards on this house, I’ve used them before but with the giant room sizes and high ceilings it was a clear choice, not to mention its close to the size that were originally there. After asking all around town I finally found out where everybody gets their trims and its not Home Depot. Builders Moulding Supply in El Cajon has just about any style and size moulding you could want, that’s all they sell and you get it in bulk 16 footers right on spot from their warehouse at a price 30% less than the big box stores. I spent about $1,000 for everything I needed for my trim job minus the closet build-outs which I’ll use pine for because it seems more durable and holds more weight then the MDF. I was pretty happy to see that they also come pre-primed because my old supplier used to only offer them raw. After everything is painted I’ll peel up the paper on the floor and lastly nail in the shoe moulding on the bottom of the baseboards to complete the historic look I’m going for. We’re getting alot of attention at the house now, several interested parties stopped by this week asking when it was going to be done. I’m pushing for late September but its going to be tight especially because I’m doing an equity grab and not paying out a bunch of labor costs in the final stretch. I figured either way it wont be prime selling season so I might as well save the money. The good thing about the timing is that If I get into the next project soon I can stay busy this winter and hit the Spring selling season perfectly. There are so many things about this project that I write off to warming up in San Diego, I’m ready now to dial in my system on the next house. It’s been 100 degrees for months in Texas, it’s been nice to finally be home and we’re having fun!

Aug 21, 2011 | 14 comments | View Post »

Bold and Fresh

It’s really nice to be able to try new materials when you are flipping houses, I’m really happy with the hand scraped and distressed hardwoods as an alternative to what style I usually use. In the big expansive space they look bold and fresh. With the large rooms and white walls I still get the expansive feel but with the warmth of the darker wood. Before nailing down the wood you can see I put down 15 pound felt paper as a moisture barrier. With one helper I installed 1400 s.f. in 3 days. Sub contractors were charging $2-3 bucks a foot so by doing this myself I shaved 3k in expenses. The walls are primer now so you can start to visualize how the white interior paint will look. I chose Benjamin Moore Cloud White and hopefully will get it put up soon.

We also installed the 2 new front fixed windows. I made some historic replicas with the mullion across the top. Now the house is finally aluminum window free and all evidence of the former owners 1980 remodel are removed except for the black interior paint on the staircase handrail which will disappear soon enough. My electrician stopped by and made up all the switches and receptacles so now I can have light inside while we paint. We also spent the majority of last week still re-hanging the original windows and trimming them out, there is so much little stuff to do it really seems like its slowing down but I cant pull in a bunch of subs because it will blow the budget so with the help of my right hand man we are tackling everything ourselves. I ordered the interior pre-hung doors so hopefully next week I can get them in and trim out the whole house with casings and baseboards. Currently up on deck I’m planning on interior paint, tile and kitchen cabinets. From what I’m noticing on the streets it seems like the market is slowing down and inventory is not moving as quickly, I’m not really bothered by it because we have such a specialty project but if I was one of the high volume, run-of-the- mill San Diego house flippers I would be careful. Home prices are down 8% from last year so its extremely important to use recent comps when looking at investing in San Diego real estate. This is when quality over quantity pays off.

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Aug 10, 2011 | 9 comments | View Post »

Painted Lady has a New Hat

This is the craziest roof I’ve ever done and it didn’t help that my roofer only saw it necessary to bring one helper. The pitch is a very steep 12′ on 10′ so it makes walking on it humanly impossible. Not to mention that there were 3 layers including the original wood cedar shake shingle that needed to be removed before we could even install the new roof decking made this an all consuming  job. It was slow going all week due to the steep pitch, they even had to hand carry the individual shingles up the 32′ ladder as we couldn’t load the bundles anywhere on the roof. It’s always good to pick your roof color to go with what exterior paint colors you’ve got planned, I can’t tell you how many times I’ve seen rehabbers make this crucial mistake, like a brown roof with a green house. I usually use the Owens Corning 30-Year Estate Grey but this time I went with something new its the Lifetime GAF shingle in the color called Slate. It’s mostly grey but with a hint of blueish green to make it look like slate on an old house. I think its going to tie in nicely with my paint color scheme. The roof on this house is real important to get right because its so visible. I took this opportunity to remake the historic scalloped decorative facia board also on the mini front gable and it came out sweet.

I also picked up my new wood historic style double-hung sashed windows by TM Cobb this week. These windows are so cool I wish I could replace all of them but the budget just doesn’t permit it. I’m putting in 8 new ones that are either unsavable or someone had already replaced with aluminum and refurbishing the rest of the original windows per the historic board guidelines. I cant put them in until I pass framing inspection. The electrician finished up this week so I’m now finally ready to call for rough-in inspections on framing, electrical, plumbing and hvac all at once. I think I’ve got 7 killer historic colors nailed down for the exterior, they are from the Sherman Williams Victorian House color collection. If the Historic Board approves it, I’ll be using a lighter green body, dark green trim, burnt orange accent on the sunburst, plum windows, medium orange for some accents, and light blue for the porch ceiling. There will also be a grey wood front porch to keep it period correct. These are some heavy colors but I think the Lady will hold them well as long as I use the accents sparingly and in the right places.

Jun 26, 2011 | 4 comments | View Post »

Painted Lady Week 6

Here’s a walk through to show the progress of The Painted Lady at week 6. After waiting 4 weeks for historical board approval we finally got the green light so we started calling for inspections. It was quite interesting to say the least, initially we failed both the foundation and framing because of a few small issues. The trench for the foundation was 2″ too shallow,  the plans I drew noted a 24″ deep trench which is overkill because a 2 story house only requires 18″ deep footings but I wanted to beef it up a little. I also upgraded the rebar size from the nominal 1/2″ as code requires to 5/8″ just do make it stronger. None of this mattered when the inspector showed up, he failed me anyway for lack of the 2″ to make it match what the plans called for. On the framing I was missing a few nails as the plans called for. I knew it wasn’t a big deal to make these few changes so it really didn’t bother me to fail. We fixed them quick and called the inspector back out 2 days later.

This is when I learned that nothing is going to just get signed off on that quick. When he arrived it took him all of about 10 minutes to measure the trench depth and check for the framing nails. He then proceeds to tell me that he can only pass me on the foundation but I’ll have to wait to pass on the framing. Really, didn’t you just look and see I made the corrections?  I’ve heard that they commonly show up and will only sign off on one or two things due to time restraints. The framing inspection includes about 4 categories; roof, floor, wall construction and sheer panels and could take up to 40 minutes in theory. Although he already verified everything was o.k. he only passed me on the roof portion “so I could stay busy and put my roof on.”  As you can imagine there’s not much new construction going on, so last year half of the inspectors got laid off so I don’t think morale is at its highest level.  With half of the staff now the inspectors are covering twice the territories so there’s not much time when they show up. When dealing with inspectors always tread lightly, give respect and remember not to rock the boat. The best rule is to close your mouth and just listen. This is exactly why most rehabbers look for the cosmetic flips or sneak by without permits.  Next week will be big, plumbing is now completely done, hvac done and electrical 75% done. Monday we are finally pouring the foundation after waiting forever for the City. Even with the slow downs I’m still pushing,  small set backs are just part of the business.

Several other cool things in TomTarrant.com land for this week;

1. There is a new contest at REIClub.com that I am nominated for. It’s another Best Real Estate Investing Blog shoot out. I’m up against some really popular sites so please go and cast your vote for me. Voting doesn’t begin until Monday, June 13 and goes through midnight on Friday June 17. This one is big, I could win a $250 Apple gift card which my wife would love. I need your help on this one guys, if you like the info I share here for you, please take a second and go vote for me!

http://www.reiclub.com/realestateblog/best-real-estate-investing-blogs-2011/

2. Joshua Dorkin over at Biggerpockets.com asked me to do an off the cuff Skype video interview for him where we’ll cover general real estate investing stuff and info about my house flipping business.  Make sure and go by his site next week and look for the interview. I’ll probably spill all the secrets you’ve been wanting to know.

http://www.biggerpockets.com/renewsblog/real-estate-interviews/

Jun 11, 2011 | 1 comment | View Post »
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