The Neighbor’s House is finally done and officially on the market (in MLS). On Friday we took hundreds of photos for our marketing campaign and web content. My favorite parts would be the master suite, having hardwood floors in the master bath, the cool Samsung fridge and of course the river rock shower floor. This house really came out good and all the concrete work and driveway gate really makes it a complete package. I got it in the computer late Friday night and this weekend we are already getting calls and have had offers. We priced the property at $389k and are marketing it heavy as a 2 on 1. Total square footage with the rear house included is 2,630 and if we used our recent comp of $175/s.f. it would put the value at $460k so I think our pricing is fair. The extra value that rear house adds should push us close to this new price level if we find the buyer who needs it. We sold the house next door for $340k in 5 days, $175/s.f., so I think our pricing here is in line although it’s quite a bit higher than most comps in the area. As I mentioned before there was never any sales over $285k for these historic homes in our farm so what we are doing is really outside of the box and drastically changing the neighborhood. We are buying at such a low level and with low construction costs it enables us to come to market with a superior product and at an affordable price, as replacement costs for one of our projects would be much higher than our asking price. Plus, who would want to live through a remodel of this caliber? Our success has been derived from offering a quality high-end remodel in an inner city neighbor and knowing that there are young professionals who work downtown and want to live close that will gladly pay for it. I compiled some pics so you can see the finish out as well as a new YouTube video that documents the whole rehab and shows what we went through along the way.
My plans are finalized for our next project, The Target House so we’ll be pulling the permits this week and weather “permitting” ha ha, getting started grading the back yard with the Bobcat in preparation for the addition. As we all know, The Spring buying season starts right after football season ends and it’s right around the corner. Additionally there are over 3000 more medical officers moving to San Antonio from February to May that will be stationed at neighboring Fort Sam Houston due to B.R.A.C. and most of these soldiers will be buying homes in our area. We have a great product and are ready to see how this plays out; we’ll keep you posted!
The Neighbor’s House is basically done now minus some small touch ups but we’ve been plagued with more bad weather so it’s dragging on. You can see the before and after is really dramatic and I am really looking forward to getting it on the market. I got an automatic driveway gate installed last week as well and boy is it sweet! This week I passed all my final inspections so all that’s left now is to have the gas company come out and install the new meter. Since the line will be underground I foresee a little touch up in the backyard after they are done. We’ll hopefully be staging the house at the end of this week and getting started shooting pictures for our marketing. One neighbor mentioned they want the house for 350k but I think we are going to test the waters a little higher for a few months since we are heading into the best time of year to sell a house. After all, it is a 2 on 1 so if we can find the right buyer that needs the extra apartment in the back then they’ll pay a premium for this house. I’ve spent all my time this week remodeling the rear unit with a full new “basic” kitchen, drywall patching, texture and complete interior paint. It’s really been a decrescendo to go from the cool main house to this garage apartment rehab but its all gotta be good. We have a lot of value here with this rear unit and its presence will be why we get a higher price yet still than we got for the house next door.
Last week our website was featured on Jim The Realtor’s blog, www.bubbleinfo.com. For those of you looking for a great housing market blog for San Diego, Jim Klinge’s is the best one out there. He brings you unbiased front line info on what’s happening in So Cal with no typical Realtor spin so we follow it religiously. He’s one of the top agents in S.D. and has also been featured on ABC Nightline and in the LA Times so getting a spotlight by him was really an honor. If you are looking for investment property in San Diego give him and his team a call.
We’ve been working closely with our architect also on plans for the Target House. We are doing some cool new things so I am really excited to get over there full time after our current house is on the market. There will be major floor plan changes since I gut the entire house and have that option. I am taking the front bedroom and opening up the space to add it onto the living room similar to what I did on Hat Trick. We’ve gone through several changes on the new addition but now I think I’ve got it nailed down as it includes all the things I wanted for our remodel: vaulted master suite with master bath, walk-in closet, food pantry, inside utility area, dual vanities, spa tub, shower, water closet and last but not least a double-sided fireplace between master bedroom and Jacuzzi tub! It’s going to be sick, can’t wait to frame this puppy up!
I want to wish everyone a Merry Christmas and Happy New Year. Thanks for checking out our house flipping blog this year and a special thanks to the 6000+ returning visitors who find our content interesting and have returned regularly. In this first full year with the website we received over 23,000 new visitors. It’s great to get the comments also; we enjoy the questions and feedback. 2009 was a great year for our company, especially with the success of our project “The Hat Trick House”. It was probably my favorite renovation to date and we set personal records in several areas on this house. In the process we also were able to buy the house right next door “The Neighbor’s House” and are 99% complete with that big rehab and looking forward to an early Spring 2010 sale. Our third and last big deal this year was the purchase of a house we’ve been after for years, “The Target House”. I’m all set roll into 2010 with this big historic renovation as we’ve already handled the demo and foundation leveling so stay tuned if you like house flipping and Craftsman style homes.
I’ve somehow managed to stay busy through the Holidays and have at least some sub contractors show up at Neighbor’s House. As you might have heard from Twitter, the first attempt at the floor refinishing was a bust. The guys had to re-sand them all down again after the stain and clear coat wouldn’t dry due to the weather conditions and did some weird stuff. They really know what they’re doing but I think he was just in a rush and trying to pull it off before Christmas so he could get his final payment. This put us back a week on having the Energy Star appliance package (all stainless of course) delivered but they finally came and wow, what a Cadillac the new Samsung refrigerator is. It’s a grand more than I usually spend but we required a counter depth model for this kitchen design to flow properly. Really nice. I also managed to do most of the landscaping while the floor crew kicked us out, I threw up about 150 feet of fence and brought in 4 yards of top soil, some river rock and 4 pallets of sod. With my energy efficient theme on this remodel I decided to use Bermuda Tiff turf grass instead of St Augustine as it requires way less water and holds up to this Texas heat in the summer. Of course I know all grass is dormant this time of year and arrives brown from the grass farms but it still sucks to put down brown sod and not to get that initial “new yard” look like the summer. The A/C guy stopped by and installed the compressor but the heat isn’t on yet until I can pass finals on Electrical, HVAC and Plumbing and then have the power company come out and set the new gas meter. I am doing a killer driveway gate again this time but this one will be automatic. Should have been installed “before Christmas, I promise” but hopefully it will come this week. Land of Manana here again in good ole SA as a lot of Hispanic workers go to Mexico from Christmas to New Years to be with family. A cool old guy stopped by this week from the area, an 87 year-old millionaire investor. He had heard of me through some local Realtors and came to introduce himself personally and see my work. Of course I love listening to seasoned pros, he told me of a land deal that netted him a million bucks in 3 months time. His parting words were: “There’s one out there for you”, very motivating.
It was a crazy week now that we have two projects in progress. At “The Neighbor’s House” we are winding things up and are having the floors refinished while the concrete guys are pouring 1500 s.f. of driveway, 2 patios, an A/C pad and flatwork around the room addition. With all the mess over there I’ve now received disgruntled phone calls and threats of calling the cops about the workers having to stay so late finishing the concrete.
I feel like an unwanted houseguest that comes and stays at your house for a week. At first everyone is glad to see me, has remodeling questions and loves what I’m doing for the area, but add 3-4 months of random work trucks parked in front of their houses, mud everywhere in the street and a constant mess and noise and all of a sudden it’s not so cool and the animosity starts to set in. Understandable though, I’m sure it’s annoying.
It was really difficult to pour concrete this time because the cold weather delays drying time and the days are shorter now that it’s winter. They’ve had the forms and rebar down for almost 2 weeks and we keep getting days on end of misty cold rain. After finally having four trucks dump about 30 yards, the finishers ended up having to stay until midnight using lights…temps were in the low 40s and it wouldn’t dry fast enough to smooth.
That was a particularly bad night for neighbors, I hate having to do that. On the inside, the floors are coming out great as the crew has gone through 3 sanding stages, wood filler and a fine screening to smooth them out. The stain goes on today so I am anxious to see the extra dark walnut stain we’ll custom mix. Can’t wait until they are done so I can install appliances and then it’s down to the final stretch of small punch list stuff and I can get off this street, its time to go!
Over at “The Target House” we broke ground with the demo this week with the help of some day laborers and tore out the entire house in one day gutting every room completely down to the wood and removing both the kitchen and bath. Additionally there was a dilapidated garage and apartment in the backyard that took 2 more days to take down by hand.
I had planned to rent a Bobcat to knock it down but it ended up being cheaper to just pay the laborers to do it. Going through someone’s old personal stuff in a garage really lets you get to know them, weird. We found pictures of the house from Christmas 1991 in perfect condition, crazy how 20 years of deferred maintenance can take its toll. Now that the demo is done, the next step is I’ll have my foundation guy get started leveling the house.
Our architect is currently working on plans; I have some great ideas for totally changing the floor plan around as well as adding about 1000 s.f. onto the back of the house. We’ll do a walk through soon and show you how we are changing things around for the renovation. Several of the other interested parties who didn’t get the house have stopped by this week seeing the demo underway and inquiring about our plans.
The “Neighbor’s House” is now painted inside minus some small touch ups. Additionally I got the cabinets in and countertops installed this week. I buy the pre-bullnosed granite slabs fabricated in China and with the help of a friend we put them in ourselves saving big money. It ends up costing me $12.00/s.f. for what everyone else charges $50/s.f. for. I intended to post a “how to install granite countertops” video for everyone but my memory card was full yesterday when we were installing so I had to settle for a few single images. Maybe next time I’ll get to film the install for everyone as it’s really not that hard to do. As you can see we also dropped in the farmhouse sink from Ikea. It’s easy to retrofit any 36” sink base cabinet to accept it, you just have to do some measuring and cutting. All the tile is done and the glass company came and measured for the frameless heavy glass door for the master shower. All that’s left now are some small projects before I can get the floors refinished after the holiday weekend. I’ll be going really dark again on the stain since the floors got such great reviews on our last project next door. The concrete guys are showing up weather permitting this week to start on the driveway. The house itself should be done soon but we still have the landscaping and light renovation of the rear guesthouse to do before the project is complete. Last week we bought another historic house for a big renovation, we close on it this Wednesday so at that time we’ll get over there and do a walk through video to show you what we have planned. Stay tuned and Happy Holidays!