Real First Week MCM

This was the real first week inside our MCM renovation now that the concrete guys are out of the way. The first thing I did was to get my roofer started, it turned out to be a little larger job than anticipated, 3 layers of tear off instead of what I thought was only 2. I put a GAF lifetime roof on and used a lighter color, Birchwood this time. Its going to go well with my grey tones on the exterior. While the roof was getting done we also finally did the demo inside.

During the week I also did some minor framing changes as previously discussed. An opening between the kitchen and living room was the most dramatic but from a functional standpoint the bathroom changes were probably more important. Both bath doors got enlarged and moved over to accommodate larger vanities and I ended up vaulting the hall bath lid to give a larger feel. The wall between the hall bath and the utility room also got moved over 6 inches to make enough room for the tub with the new door opening location. I also changed all the rotten sub floors in the wet locations. All this is stuff that you’ll never see but its really more important than the nice stuff that covers it up. The electrician and plumber also got started roughing in the new mechanical upgrades, a new 200 amp service and the water heater relocation to the garage to make more room for the kitchen cabinetry.

Primarily, to get the ceilings ready for my new stain I had my sandblasting guy, who normally does exteriors for stucco prep, come and blast the tongue and groove cedar and exposed beams. They came out killer now as you can see. I’m still pretty sure I’m going to go with a transparent green stain but I’ll do a test area and see how it looks. Its so clean now even just a clear coat would be cool but it might look too “rustic mountain cabin” for my taste..

Over in South Park we had the big time survey done by Mike Curren for the site plan. This survey measures your lot by satellites down to the fraction of the inch and he marks the property lines. He also established the benchmark for grade for use on the building plan elevations. This way there is no question when we go to submit plans to the City. After playing with several floorplan options this week it became apparent we have to go 2-story to get the square footage I need for resale as well as a garage. We also got the necessary Soils Report performed this week. I had to have a hole dug 2′x3′ and 4′ deep. Then we hired Soiltesters to come out and do the test. I was worried that because of the canyon location and slope of the lot that we could have had fill in some areas which would cause us to use deeper footings, but as it turns out the fill is only 18″ deep. The soil report will call for the new footing to be at least 12″ into native soils, which are the sandstone that is redish in appearance. You can see in the hole I dug where the soil changes color about 18″ down. This guy looks like a soil tester doesn’t he? We are still working on the floorplan, I’ll share the preliminary version as soon as we get close. Thanks for following!

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/

Master Sweet Framing

I’m getting close to the stem wall pour, the guys worked on the forms all week. Inside the forms we hung 12″ j-bolts that will anchor the house to the foundation once it’s poured. Then we laid 4 rows of #5 rebar and secured it to the screw jacks with tie wire. Anywhere the stem wall is more than 24″ high we will hang vertical rebar 24″ on center as well. This is over and above local building codes but  worth the extra expense. All the load from the weight of a house is carried on the exterior walls and down to the footings, it’s totally different for me here doing this as in Texas when building a pier and beam room addition you don’t do this perimeter foundation. The plastic sheeting you see is to keep the concrete from blowing out the back once we pump it into the form cavity. All that’s left now is to set the outside forms, we’ll cut windows along the top of the outside so we can pump the concrete in.

I also got the new master suite all framed up, it’s 375 s.f. and includes 9′ ceilings, a big bathroom that fits dual vanities, soaker tub, stand up shower and water closet. There’s also a generous sized walk in closet and french doors off the back. While the framers were there I also had them raise the kitchen ceiling, move some closets around upstairs and add some really cool tray ceilings in the living room and dining room that I’ll use for my mechanicals and central heat ducting to get upstairs. We also added fire blocking to the entire house since I had all the walls open. I bumped up the room addition ceiling  joist size to 2×8 and the roof rafters to 2×10 just to ensure the inspector likes what he sees and I get off on the right foot with him. It’s coming out pretty trick, I’m excited about how easy it was to really modernize this 100-year-old floor plan and am confident it’s going to help sell the house. The prices I’m nailing down for mechanicals on this 2000 s.f. house so far are as follows: Complete electrical with new 200 amp service: $5300. Complete plumbing with copper supply, gas lines and all new ABS waste lines: $5000. Complete new central heat system with new furnace and ducting: $1800. New roof: $2000 labor.  These are killer prices and all from legal, licensed sub contractors, I couldn’t have done better in Texas. Thanks to everyone locally who has sent me referrals, after this huge project I’ll have a great team ready for any size project!

30% Of Americans Won’t Park In Here

We ended up going with Golden Pecan floor stain after trying about 8 different stain color samples. After applying the stain we used 2 coats of semi gloss polyurethane (buffing between coats) and mixed in a little Colonial Maple color to tint it even more. I’m really happy with the way they came out, only new wood can look like this so I’m sure the future owner will appreciate it. In the original part of the house the floors are almost 100 years old so they aren’t this perfect of course but a little distress look is appropriate due to the style house and age. As I was saying before I didn’t want to stain the whole house dark just to hide a few imperfections up front and not get to appreciate all this new red oak in the addition.

Here’s a sneak peek at the master bath. As you can see the glass company showed up this week between floor coats and installed the custom frame-less glass for the shower. The door is 7 feet high with chrome hardware that matches the other interior doors, I always design them a little higher than the shower-head. The fixed glass picture window is suspended in the tile opening with more beautiful chrome hardware.  Most builders put the clamps on either the tops or sides but I did something a little different by having 1 clamp on all 4 sides. This custom frame-less glass ran $1300.00 installed. My plumber is coming this week to set the spa tub and fixtures, with my last contractor I would have done this myself but the new plumber doesn’t want me to touch anything so he can give the future homeowner a 2-year warranty, cool with me, less work. Check out how the new wood even runs through the bathroom and into the walk-in closet, this is a killer upscale look and blows away any kind of floor tile I could have used.

I recently heard that 30% of Americans (myself included) don’t park in their garages, they only use them to store junk turning them into basically a drive-in closet. In California people have alot of pride in their cars, detailing businesses flourish with customers paying hundreds of dollars for hand waxing but then again it never rains so it makes sense to keep your car clean. Here in San Antonio we get an average rainfall of about 32 inches compared to 9 in San Diego. Even after a rain you’ll still see puddles a week later because the streets are so bad. With all this rain you’d think that garages would be hugely popular here. It’s not the case however, people would rather enclose their garages for more living space because they don’t go outside anyway as it’s too hot and humid. Plus, their car is going to stay dirty anyway, garage or not, because of the weather and the street conditions.

So, why the hell did I build this garage you’re asking? Our project is going to be priced around the $400k mark in a city where average home proices are around $150k.  Theres an unspoken rule that if you are paying $400k in San Antonio you better get a garage. Even if the locals don’t appreciate them most of our buyers are moving in from other states and telling their realtor to do searches for 3/2/2’s so we dont want to miss any potential customers. Once they get used to the SA way of life I’m sure they’ll stop parking in there, their car will be filthy and it’ll be full of crap. Either way these historic houses don’t have much storage so it’ll get used. I designed the 500 s.f. garage to look historic and match the house architecture. I’ll be using “T117 House Siding” again and I’ve left the rafter tails open, included huge 28″ overhanging eves and even a clipped gable roof. There will be a vent under the gable and of course I’ll multi-color it as well to match the house.

House Flipping Tip: Finding Sub Contractors

Finding good contractors is a huge key to your success when flipping houses. There are 2 kinds of contractors, General Contractors, or GC’s, and Sub-Contractors. Most investors hire a GC who then brings in his own sub-contractors, oversees all their work and tacks on about 30% to your price. This works great for people who have little construction knowledge or don’t want to spend the time ordering materials, checking in deliveries, writing checks on Fridays to subs and overseeing work. My feelings are that most investors are doing this anyway and basically acting as their own GC, so shouldn’t be paying for one. Homeowners these days are even acting as GC to save the 30% and hiring subs themselves while building their new home. There’s even a national company called U-BuildIt that sets you up with the list of subs for a fee. So, the key to the savings is finding the subs and managing them yourself. (more)

Puttin’ Pests To Rest

We have now passed all rough-in inspections for the Target House. Tomorrow I’ve called for the next inspection which is for the framing. This inspection is on the whole house permit that the owner or GC pulls. When inspecting framing they look for placement and relationship to all the trades’ fixtures as well as other items like foaming the windows and fire blocking the holes from the electrical wires. Once I pass framing  I’ll be free to hang the insulation this week. Only after the City then inspects the insulation job can I hang the drywall. I’ll order it for a late week delivery and we’ll start hanging right after the insulation inspection.

Today I had the whole house sprayed for wood destroying insects (termites). This is the perfect opportunity to spray as the walls are all opened up. I don’t know any other rehabbers doing this, it’s a little more expensive but worth its weight in gold to the future homeowners and the life of this killer old house. The residue stays in the walls for up to 10 years and also kills roaches and other bugs who normally use those highways to enter your house. These old historic homes have tongue and groove wood all over the walls and ceilings so it’s a party if termites get in. I’ve heard of some people sprinkling seven dust in the wall cavities before drywalling but as you can see in the video we soaked everything to the hilt.

Post framing walkthrough ~ Target House

Here’s how my 900+ s.f. addition came out over at The Target House. The floorplan is flowing nicely even with the change in elevation to the master suite. That hallway is actually 46″ wide even though I mistakenly tell you 42″ in the video so its not cramped at all. As you can see I basically had to rebuild the entire floor in that back room this week because it was originally a screened-in porch so it sloped down for drainage. It’s all straight now and lines up perfectly with the new addition. As far as sales go, we are getting great showings at The Neighbors House, Spring is here, the weather is beautiful, flowers are planted and there is a strong smell of home buyer in the air: ).

..we have Roof

For those of you taking notes, I just completed step #4 in my standard order for major renovations.

Step#1 Demo

Step#2 Level the existing structures’ foundation

Step#3 Frame up new construction portion

Step#4 Put the roof on

As with any renovation the demo always comes first. Next, I always level the existing house’s foundation so I am starting with something straight before I add on. Thirdly, I frame up the new addition and then finally get the roof on so everything inside will now be dry. After the roof I’ll usually move towards getting the siding on which includes doors and windows then I can have my sub contractors come through and rough-in the electrical, plumbing and hvac. I like to have the house secure before new stuff goes in so this is my reasoning. You can see how the roof gable pops up moving backwards through the addition, this compensates for the interior steps keeping the same 9′ ceiling height throughout. 

After my usual price shopping all over town I ended up getting the 30-year roofing material at Lowes for $50/square.  If you are spending alot of money at Lowes or Home Depot have them send your quote to the “bid room.”  They’ll come back with another 10% off everytime. If you bring in a competitors quote they’ll beat it by 10%. In San Antonio if you can speak a little Spanish you can get a roofing laborer to put on a new layer for $20/square if you supply all the materials whereas roofing contractors charge over $160 with materials. I ended up throwing down about $80/square total after including all new flashings, tar paper and drip edges. I used my favorite color Estate Gray by Owens Corning, it goes with everything and looks rich. This isnt bad and less than half of what a homeowner would pay. This roof is 37 squares so the total price is around $4000 which is a great price for a 30-year shingle with all new metal and added ridge vents on a 2200 s.f. house.  Another rain storm caught the guys mid-way Saturday so we’re finishing it up Monday.

Framing and TV Deal

After some last minute on-the-fly floorplan changes Thursday night from our architect Morgan at Dewitt, we finally got our material delivery Friday afternoon and my new framing crew got started. We really cut it close as she actually showed up to the jobsite with the new plans just hours before the framing started. These guys are very detail oriented and even cheaper than my last guy so I’m pretty stoked I found them. Framing in San Antonio goes for about $3.00-3.50 per square foot for new construction if you deal directly with a sub contractor, in case you are wondering we negotiated $2.71 per foot for this project. In a day and a half they got the floor system done and all the walls up, all that’s left for Monday are the ceiling joists, rafters and decking. The master has a cathedral ceiling and we are also doing a double-sided gas fireplace between the spa tub and master bedroom which are both new for us so its exciting. I’ll get the roofers over as soon as framing is done so we’ll be all “dried in” and then i can get started on the siding myself. 

A Major TV production company in Hollywood that does all the good reality shows on TLC Network and HGTV contacted us this week about doing a reality show about house flipping. They found out about us evidently through our YouTube channel and got to my website. It would be real cool to get our own show but unfortunately they are looking for someone doing a minimum of 10 houses per year, probably so they can film enough episodes. Theres been a real lack of good flip shows on TV lately, we really enjoy Flipping Out because Jeff Lewis does the larger spec deals like us and Property Ladder was always good because Kirsten Kemp the host is great and they also featured such a wide variety of different investors from pro to novice.  As far as the new Flip This House crews, Rudy in LA isnt really doing it for us and the New Haven crew seems to be more focused now on selling courses online like Montelongo. It’s pretty flattering nonetheless to get approached anyway, maybe there will be a Property Ladder episode in our future? 

We are still getting good showings at The Neighbor’s House and I feel the Spring buyers are just now getting out there now that we have great weather. In San Antonio, sales are off 4% year to date when compared to last year and inventories are slowly rising this year by about 100 houses per month. After a closer MLS search for our general area, its apparent that there are tons more sales that are AO (under contract) or Pending right now so this figure should be improving for March.

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 getting switched over to Wordpress as we speak and will be a true blog and allow interaction with our visitors through RSS feeds, comments and also be way easier for me to do 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!

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.

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!

Hat Trick All Framed Up

Walk through with me and check out my framing…this is how we roll.

Get 50% Off By Haggling With Your Subcontractors

New Addition Framing

2.5 days and the whole master suite addition is all framed up and dried in. It came out sweet; I am really excited with the reconfigure of the floor plan on the Hat Trick House. I have the roofers coming tomorrow to put down a 30-year dimensional shingle in the color Estate Grey with ridge vents. My electrician is also getting started in the a.m. roughing everything in for the complete re-wire. I am also planning to call for framing inspection tomorrow as well so let’s hope for a pass, should be no problems as I went with 2×8 for ceiling joists and 2×6 for the roof. I had a bid yesterday for all new plumbing with permits including tying in the new room addition. This character had the nerve to bid $8,000. It’s really crazy now that construction has slowed down; some subs are actually raising their prices to make up for less work. I had him down to $3,500 by the time we got outside to the curb. I’m still getting bids and trying to hit $2,500 max.

Land Of Manana

When my wife and I first moved to San Antonio 2 years ago an insurance agent told us the city’s nickname was “Land Of Mañana.” We’ve found this to be totally true, it seems most workers are satisfied to poke along and only do what’s necessary to keep their family fed and stay semi-busy. Oh, I’ll just finish it tomorrow seems to be the consensus. Since the cost of living is low here there’s really no sense of urgency to get anything done. Although we do most of the rehab work ourselves there are still sub contractors who we depend on and recently we’ve had our pace slowed down a bit.

The foundation guys disappeared for a week after there was a water leak under the house and things got a little muddy. You can’t lift the house to level it if it’s muddy because the hydraulic jacks will sink on you. I had the meter off but it turns out it was faulty so some water was getting by even though it didn’t show it. I had SAWS come out for free and replace the water meter so we are all dry now and the guys finally got the house level and are almost done.

Ikea Kitchen Planner

The design of the kitchen cabinet layout is complete thanks again to our Swedish friend’s website. Last time we wrote that we had some people email us and ask who our Swedish friend is…for all of you who don’t get that joke our friend is Ikea! Yuk yuk yuk. The design required us to remove the 3 existing kitchen windows and put one back in with a new location so it’s centered over where the sink will be.

Kitchen Framing

I finished the entire interior framing this week so the new laundry room, hot water heater closet, refrigerator cubby, food pantry, hallways and relocated doorways are all complete. I also patched the wood floors with Red Oak in the areas where I opened up interior walls. Once the floors are refinished you won’t be able to see the patched areas.

Patching Wood Floors

We are ready to start on the master suite room addition this week. To prepare for the room addition I had to get a 60-foot pecan tree taken down and then grind the stump down. I got a great deal from some guys to take down the tree but once again they only seemed to want to work half days and spread out a one-day job to 4 days. Getting rock bottom prices from subs is a key to our success but sometimes it slows you down a bit. The room addition is 29 feet long so I also had CPS Energy come out and move the gas meter from the rear of the house 30 feet back in the yard. This only cost about $200, which I though was surprisingly cheap. They kind of have you over a barrel when it comes to moving their equipment so they could really charge what they want. CPS is really easy to work with here in SA. They even came out for free when we dropped the big tree and took down the power feed to the house to make it easier and safer.

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