I started getting the siding on this week and have been interviewing new subcontractors for the 3 trades that will be next in line to rough-out the house. I love the historic style #117 wood siding, it gives my projects a real edge over the competition as most guys run HardiPlank on their additions. It cost a little more at about 45 cents a foot but well worth the price for my projects. Its always my goal also to find the best prices for any work that I have to hire out because it increases my net profit. A dollar saved is a dollar earned, right? My DIY method of doing these rehabs does not involve hiring a general contractor who would tack at least 50% profit right onto your cost but instead managing the subs personally and working right alongside them doing most of the work myself. This gives me the freedom to pick my own sub contractors and negotiate with them directly and pocket the savings. As with many of the subs in the past, I started to experience “price creep” with my plumber on every house we did with him. With construction as slow as it is I cant justify paying a higher price for the same job so we give new hungry guys a shot.
Out of the 3 trades I always do the plumbing first, its hard pipe and cant move whereas the electrical and mechanical can work around anything. I accepted a bid from a plumber yesterday that I’m really excited about. He’s been is business over 25 years, does alot of new construction homes, comes highly recommended and has beat our last guys price substantially. We are getting a complete new plumbing system with “15 fixtures” including new pex supply lines all the way from the water meter, new pvc drains all the way to the sewer and complete new black pipe hard gas lines from the gas meter throughout the house to 4 locations in order to qualify us for the “Smart Energy” title. Our local energy company CPS right now is really pushing awareness of using a combo of gas and electric to builders but we’ve of course always done this anyway. They designate your project a Smart Energy House, this combined with all the Energy Star appliances has been a real plus for our customers. His bid also includes supplying the hall bath tub and 50 gallon hot water heater. I am getting a 1 year warranty as well and he wont even let me touch the fixture installation to save money as he’s that concerned about his liability. The price is $5900 for the job where previously we were paying over $7000 and having to furnish the tub, heater and do the trim out myself so effectively I think I’ve shaved about $2000 of this one trade alone. I hope he works out, he is suppose to be all roughed in and topped out this week for an inspection.
The Neighbor’s House is under contract again as of last weekend. We are passed the home inspection and are expected to close at the end of the month. Additionally there is a back up offer in the lurch. I still will share all the juicy details from all the previous offers we received and deals that fell through but not until the sale closes. This house is incredible and someones going to be very happy to own it. What a great project and fun story!
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.
We passed plumbing this week but failed A/C inspection yesterday due to some minor details overlooked by my sub-contractor, which have already been addressed. Second mechanical inspection is set for Monday.
After passing plumbing I went ahead and installed the new plywood sub floor and set the tub in the hall bath and shower pan in the master bath.
As soon as we pass the mechanical inspection I can call for the framing inspection. It seems odd and out of order the way San Antonio does it, they inspect framing after all the tradesmen have finished.
If something were incorrect you would have to rip out all those sub contractors new work, weird. So the schedule is: pass mechanical Monday. Call in framing inspection for Tuesday.
Pass framing Tuesday and schedule the insulation inspection for Wednesday. Once we pass the insulation inspection we can hang all the drywall. My drywall crew is chomping at the bit and ready to get started. I am going to have it delivered Thursday, 225 sheets to do the whole 1930 s.f. house, 5/8” for the ceilings and 1/2” on the walls.
Take one last look inside these walls, next time you see the house it will be all sealed up. This is always a huge milestone for me; to see the house with all new drywall really shows how it will look. It blocks out all the “old house” smell and it’s all downhill from there, baby.
We’ve been monitoring sales activity a little closer lately and I ran some interesting reports out of MLS last night. In our little “area” there were only 9 sales in 2008, (2 of which were ours) and avg. price was 206k. In Q1 08 there were no transactions, so far this year we have 6 pending or sold. Average price on these 6 is 257k.
That’s an increase in sales activity of 600% and an avg. price increase of 19% Y.O.Y. Currently there are only 4 months of inventory making it essentially a sellers market. While the overall market has slowed down in San Antonio our area seems to be a bright spot. The Craftsman Bungalow sold for $174/s.f. last year setting a record for high comp based on $/s.f.
The avg. price per s.f. is closer to $155.00 so with Hat Trick being 1930 s.f. and the level of rehab we plan on listing it for around $289k –$299k. The only thing better than setting a high comp for a neighborhood is getting to come back and use that comp in your next sale!
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.