This is what the potential buyer told me Friday when he stopped by during my cabinet install. It’s the same couple that wrote the great offer a few weeks back. First time I’ve ever heard anyone say this, he’s really not shy to let me know how bad he wants it. They really love the house so I hope they get it. I passed final electrical inspection Tuesday so now we are waiting on CPS to drop the power to the new meter loop. I finished the fence, it ended up being a 4-day project with my helper and a total of 210 feet of dog-eared cedar with a rear, locking gate on the alley. Because all the cedar started to look a little “fency” I decided to go with a wrought iron driveway gate so I had my guy come and measure on Friday. After the fence I jumped right into the 30’ x 12’ rear deck project, only 2 days total to build the 360 square feet with a sweet bench to boot. When the pressure treated wood dries out for a week or so I can put some stain on it.
The cabinets arrived Thursday so I got right into hanging the boxes and vanities as well as topping out the plumbing. All that’s left for the cabinets are a few filler pieces, glass and the crown molding. The simple Shaker style with square lines really goes with the house and the wine rack adds a nice touch. All in all, I am really pleased with how my kitchen design turned out. The next major items to tackle on my list are granite slab counters for kitchen and baths, hardwood floor refinishing and A/C final inspection. I am ready to get this one done, it’s been fun but I’m feeling a little burned out from the final big push.
One more week until the Grand Opening of the $74.4 Million dollar Museum Reach section of the River Walk Extension Project. Here’s a great video containing a sneak peek of the new River Walk Museum Reach area and the artwork incorporated. Thousands of people are expected to be milling around down there next Saturday. We are planning a family stroll Sunday morning.
The Hat Trick House is coming along quickly now. I switched gears to working outside this week painting the garage to match the house and starting the rear privacy fence. Final inspection for electrical is scheduled for Monday so if we pass we’ll proceed with finishing A/C and calling it in for final as well. The cabinets and vanities will hopefully arrive on Thursday. The buyers who wrote the killer offer have been by twice this week checking progress.
$8000 Dollar Tax Credit as HUD down payment?
HUD is now allowing first time homebuyers to use their $8000 tax credit as the down payment on FHA insured loans. Isn’t this taking us right back to where the problems began with putting people in homes with zero down and no skin in the game? We already got rid of the “down payment assistance programs” due to the high default ratios of buyers who didn’t put anything down. HUD secretary Shaun Donovan announced this brain fart this week during a prepared speech.
The interior paint came out really good and we’ve received 2 offers already and the house isn’t even done yet! Build it right and they will come. Instead of popping out different room colors like a clown house we ran Ralph Lauren Macaw through the entire house except for the baths.
With all the floor plan changes and the room addition now it seems the house is reconnected with the color unity and it all flows well. My electrician also came this week and installed all the devices, switches and receptacles.
The buyer’s agent I spoke about on the last update showed up Monday with her buyers in tow, a really cool young couple. I had told her my price was in the $300k range but wasn’t specific. They absolutely loved the house and have been looking since Feb and have seen almost 70 houses.
They wrote an incredible offer the next day for $310k with only 2 pts for the agent so effectively a $313k offer. With the recent new comps I really think we can push it a bit higher and as good as the offer was, I really want to market the property correctly and see what we can get.
There have been 2 recent sales (one was ours with Craftsman Bungalow) that have got $175/s.f. The new pending sale we are excited about will be close to $190/s.f. With our addition of the master suite the Hat Trick House will be around 1930 s.f. so even if we use the conservative $175 per square foot then that puts us at $337k.
If they love it now just wait until the landscape is done and we stage it. The highest sale in our area was for $299k and only 1650 s.f., so it looks like we are headed to another record breaking sale.
Wednesday night we received a call from Agent #2 whom we’ve done business with before. He has another buyer who has evidently already stopped by, spoken with me and seen our project.
They offered a little less than 300k and wanted to finish it themselves so they can pick the colors and fixtures. We’ve got about 13k left to spend but we also have final payments to our subcontractors and open permits to finalize.
Plus as we mentioned, half the fun is staging it and marketing it so we maximize the potential on the project.
It took 4 days but I got all of the tile done minus the white grout which I’ll do Monday. I went to Daltile and opened a wholesale account to get the Arctic White ceramic because they don’t sell retail to the public.
You can find white ceramic at the big box stores but they don’t have all the special bull nosed corners necessary to do the job right. There are also 5 different shades of white ceramic tile so be careful if you are mixing pieces from Lowes and Home Depot.
I used 6”square up to the glass liner then 3×6 subway tile on top. For the floors in both baths I used 18” travertine. I spent about $900 for ceramic and $350 for the travertine for both bathrooms. We generally budget $3500 for a complete high-end bath remodel so we are in line here with this expensive tile.
I think the classic white ceramic mixed with the modern travertine and glass achieves a good balance of old and new. The cabinets are also now officially ordered with a 12-day turn around out of Dallas.
We had several new, interested parties contact us this week including a realtor representing a buyer whom had heard of us through a lady 3 blocks over.
She knows the area extremely well and didn’t flinch when we had told her our plan on listing in the 300k range and in fact she also was aware of the recent price increases in the area including the 2/1 that’s under contract for 249k without major upgrades. There is virtually no inventory in our area and it’s also helping push prices up.
We spoke about why Mahncke Park is seeing such good appreciation while for the most part the rest of San Antonio is staying flat. She felt its partly because it’s the second best choice for a historical neighborhood to King William/Monte Vista where prices are substantially higher.
I still feel strongly it’s mostly due to the San Antonio Riverwalk extension to Witte Museum and all the Broadway revitalization. Additionally, M.P. was just under priced for its location for a long time and is now just catching up. San Antonio Board of Realtors put out a press release regarding March 2009 real estate sales statistics and first quarter trends. It said sales activity had dropped by 25% but prices remain stable.
From talking to struggling agents on the front line it seems to me that activity has slowed a bit more but as one agent just told me the other day “There are just too many agents in San Antonio, all hanging on after the boom years when Californians were buying 3-4 houses sight unseen.”
Those days are gone now because investors in California and other bubble markets can get cash flowing properties closer to home and be better positioned for the next up cycle in real estate prices.
We almost finished the exterior paint but the rain came again Friday. San Antonio needs the rain but when you are so close to adding the final details it really sucks to be forced to stop. The replica historic wooden window screens I made really allow for a cool color blocking combo. The dark purple accent color is from Benjamin Moore and called Vintage Wine. Of course we had it mixed at HD in a less expensive Behr.
I am starting on the bathroom tile Monday rain or shine. I was crunching some numbers in MLS on an adjacent neighborhood after talking to a friend who has a flip there sitting on the market. Inventory levels are twice what they were in 08 and transactions are down 50% while the average sales price has stayed flat at 188k.
This neighborhood was hot when all the San Diego investors were here due mainly to the school district (AHISD) but several eventually got caught with their pants down as the market slowed last year. The small historic San Antonio neighborhood Mahncke Park on the other hand has seen a y.o.y. average price increase of over 20% as well as an increase in sales activity.
I cant wait to get the Hat Trick House done and try to set another record high sales comp. We are on budget with the rehab and our target sales price has risen due to recent sales comps pushing prices up. The cactus came up missing after I offered it to several workers. Someone came and dug it up after hours. I have to say I am sad to see it go even though we were planning on removing it for the new landscaping.
It’s been a crazy week jumping from one project to another and making offers on 2 other properties. We started to paint the exterior and got rained out on day 2 of a 3 day rain. We did however get 2 coats on the eaves painted with Benjamin Moore’s Monroe Bisque.
Then we got 2 coats up on the body of Benjamin Moore Tate Olive before the rain started. We are doing a 4-color scheme here but the 2 additional colors are used sparingly on window screens and accents.
If you are ever painting and it starts to rain STOP immediately because the paint will not dry! I still have a day or so left on the trim and columns but it looks like we are due for a sunny week. The green body color came out sweet.
was simultaneously spraying the interior trims and doors with High Gloss White. This is tricky business because you can’t have any runs but need complete coverage.
It’s very similar to painting a car (or in my case a beach cruiser frame with spray paint). Multiple thin coats is the trick. Halfway through the day the clouds rolled in and it started dumping so with the moisture in the air this paint just sat there wet and wanted to sag.
We quickly got lights and heaters to speed up the drying, whew, close call. So we are ready now to put the color on the walls, which I’ll cut in with a brush and roll soon.
We still haven’t pulled the trigger on cabinets yet. An old friend that I reunited with on Facebook this week has a cabinet shop in Houston and can order from several manufacturers and have them delivered right to our job site. I am choosing white shaker style cabinets from Woodmont called Hearthstone.
For the price that I would have gotten cheap Ikea cabinets I can have these better white maple ones. The cabinets might take 2 weeks to arrive so in the meantime I’ll tile the bathrooms.
I finished all the hardibacker floors and shower walls since it was raining so I’m ready to tile now. We finally decided to go with 18” travertine on the floors but white subway tile for the tub surround and shower with glass tile accents we found online.
There’s a great site called glasstilestore.com that offers free shipping on some items in case you want some glass tile for a backsplash or accents.
Everyone always asks us why we decided on moving to Texas from San Diego to invest in Real Estate. Our plan was to pick a stable city to go to and flip houses while we wait out the California price freefall and then go back to invest in more rental houses at the bottom of the next cycle.
We could have picked any state in the US but for us it was an easy choice (and not to mention I am originally from Houston). In the face of National headlines delivering nothing but grim economic news, Texas is a Lone Star shining bright, a beacon of stability, growth and prosperity.
With the projected growth around the metro areas and added commerce, jobs and real estate opportunities, there will soon be a Lone Star Boom. Let’s see why everyone is talking about Texas:
If Texas was a country, it would be the 10 largest in the world.
If Texas was a country it would be the 5th largest based on oil and gas production.
If Texas was a country it would have the 12th largest economy based on GDP.
In the last year ½ of all jobs created in US were in Texas.
Texas has largest population growth in US.
82% of Texas population is in metro areas Houston, Dallas, San Antonio and Austin.
3 out of the top 10 largest cities in US are in Texas.
Texas is home to more fortune 500 companies than any other state.
CNBC recently rated Texas #1 state for doing business.
All the tape and float is now complete and the whole house got textured today with a light orange peel. This crew did a great job and the house looks incredible. The texture guy was checking out my cactus in the front yard so I had to keep an eye on him. We ordered 13 pre-hung interior doors at roughly $68.00 ea. this week so they will get delivered Tuesday and I can start hanging them.
I chose a raised 2-panel hollow core with oil rubbed bronze hardware, which we will use throughout the house. A nice young couple has been by several times looking at the house and found me through a friend who lives on the next block. They are extremely interested and love the area however I think we might be priced a bit out of their range. It’s amazing how hot this area is and what little good inventory comes up.
Most of the houses in Mahncke Park are 2/1’s with tiny closets and not fully updated so our 3/2 with luxurious master suite will be a very unique offering and timely to coincide with the surging popularity of the area. Here is a quick walk through video from today.
Last week we passed the mechanical, framing and insulation inspections and finally got the drywall hung Friday. Eating cactus is a big thing here in San Antonio with the Mexicans.
First the sheet rock delivery driver spotted my cactus in the yard and wanted to take some with him to eat, of course I obliged. Then when the hangers showed up Friday and also got excited about it I had to give it a try. Evidently you are supposed to boil it first and then chop it up and use it with eggs in burritos or carne asada on the grill.
Eating it raw off the plant in my backyard was quite an experience; I’d have to say it tastes like room temperature cucumber. The workers I find are quite resourceful. My roofer on another house found a wild berry plant in the alley and harvested them saying he was going to make salsa. I tried those too and they were hot as hell.
I’ve seen these berries for years on plants but always assumed they were poisonous. I want to know who the first guy was to try eating these backyard plants and find out they were ok.
The tape and float crew came in over the weekend and got started as you can see. They didn’t find anything appetizing growing in the yard. By mid week we should have it all the way to texture inside and then I can take over with the paint sprayer.
My stomach was feeling a little off today; don’t think I’ll be eating any plants out of the backyard again anytime soon.
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!
After 5 days of prep on the Hat Trick House I finally got the outside in primer last weekend. Just in time before this week’s 4-day rainstorm hit. It looks great, can’t wait to see some color on it.
My wife and I are considering an olive drab body color with cream trims and plum accents. The A/C is all roughed in now so we will be calling for inspection shortly. The plumbers are finally now working on roughing in the complete new system including water supply, waste and gas lines.
There will be no trace of any old mechanical system in this house when we are done. Although the market has slowed way down this year we are happy to see 2 more houses go under contract this week within blocks of our house.
Despite the troubling economy and all the bad press in the media, people still need houses to live in and this area we have been investing in is hot. Additionally, we are getting random potential buyers from the neighborhood stopping by asking when the house is going to be ready.
The word is out that I am doing this rehab as we have developed quite a following in Mahncke Park, everyone loved our last remodel one block over, the Craftsman Bungalow.
This week we had our electrical inspection for rough-in and passed. The inspector that came out was the same guy who did our last rehab house one block over and complimented us on the good work being done.
I really felt guilty for taking out the original sashed, leaded glass windows after seeing all that white vinyl earlier this week. It had to be done though as they were in such bad shape and with tons of cracked panes.
Additionally, with the room addition having new dual panes it just made sense on this house. To redeem myself with the historical gods I spent 2 days remaking wooden original replica hanging window screens.
I designed them in such a way to minimize the appearance of the white vinyl. They came out sweet and will be an important accent feature of the exterior paint job coming up soon.
I used 1×2 and 1×3 Poplar hardwood and pre-drilled, screwed and glued them. I also used the historically correct screen hangers still available from Stanley. After the screens are painted I’ll stretch the mesh behind the frames.
I also installed the pre-hung back door to the kitchen and went ahead and replaced the siding around it since I had extra left over. These pre-hung units are really easy to install, any DIY’er can tackle this project. Finally, I installed the French doors to the master bedroom so now the house locks up good at night.
Many of our regular visitors remember the wholesale deal we offered last summer called Bungalow 2. We sold it to another investor and he quickly rehabbed it with a full crew. He did a nice Ikea kitchen with granite and stainless and added a master bathroom on it as well. After being on the market only 44 days we saw that it just went under contract. Here’s how the house looks now after his rehab.
As you can see I have the whole house sanded down and the new windows are in. I did all 30 windows in 1 day by myself. It’s looking really good now and it’s easy to imagine how it looked in bare wood form circa 1925 with a possible Model-T parked out front.
Looking in the near distance you can see the new 20-story luxury upscale condo building called The Broadway that’s being built just 2 blocks away. It’s the largest scale condo high-rise in San Antonio and the most expensive coming in at $500 per square foot.
The San Antonio Riverwalk Extension will reach 2 blocks away from this high-rise and our property as well. This area of Broadway will become quite swanky in the next 3-5 years with the addition of this high-rise and more on the table.
We are in good company with the builder, Mr. Red McCombs who is also betting on this area as being a good investment. Mr. McCombs is supposedly keeping the top floor for his private use while the 19th floor is comprised of two penthouses at 4 million each, one of which is already sold.
The complete electrical is also now roughed in. All we have to do is set the meter loop next week and then we can call in for rough inspection. I hired and fired a plumber this week as well, after talking him down to the price we needed he dropped off his materials and disappeared for 4 days.
He begged me to give him another chance and explained how badly he needed the work, I could only keep asking myself why wouldn’t he show up and do it then? If it’s this hard to get him over to do the rough-in then we could really be in a jamb when inspections started…better to clip this guy now.
Of course we didn’t give him any money up front so we haven’t lost anything but time. The HVAC guys have started running all the ductwork for the new central A/C I’m adding. I’ve located the furnace and coil in the attic to save space.
I am using a 4-ton, 14 seer Goodman system for this house. They recommend roughly 1 ton for every 500 s.f. of living space. Prices in San Antonio for a system like this with all new equipment, ducts, grilles, boxes and permits run about $5,000.
Keep in mind this is a builder price; retail companies from the phone book would be quoting $8-10k easy.
I got the siding on this week as well. I used the “historical replica” #117 siding for the whole master suite addition so it matches the existing house. I did the whole rear addition with 1 helper in a day, a big day though. It’s been pretty fun building this “new” addition in the “old” style.
It reminds me of the restoration/modified builds they do on old muscle cars these days. All old and original looking but with today’s advanced technology.
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.
