I have officially begun the renovation of what is to be known as my Apache Project. It started as a three bed, one bath singele family home built in 1959. It is a concrete slab, cinder block home that needs A LOT of work. I am diving into the deep end on this one and am looking forward to learning a lot about rehabbing and managing a project of this magnitude.
I paid $26,347 for this home and comped it out for and ARV of roughly $110,000 given the neighborhood and similar properties in the area. I estimated that it would take about $60,000 to bring it up to a sellable condition. If estimates prove to be correct, after closing costs, we should be able to net a little over $10,000 profit.
Unfortunately, now that I have begun to peel back the curtains on this home, there are a lot of structural issues that I didn’t see that are going to need to be fixed in order to be able to sell. I am going to have to have a framer come out and solidify that framework and make sure everything is on the up and up.
Having said that, this opens up the opportunity for me to re-arrange the layout of the home a bit and make it flow a little better.
The first week or so for me has been all about getting in contact with all of the people that I am going to need to come through the house and do repairs. I plan on doing some of the work myself in order to save some on labor costs, but am going to weigh that against the time it will take me compared to what a professional would take.
So far I have talked to plumbers, sheetrockers, electricians, cabinet guys, landscapers and floor installers.
The numbers so far are in line with what I had estimated, and some are even coming in less than what I had anticipated.
I haven’t gotten in contact with a framer yet, and know that that is going to cost me a pretty penny to fix all the problems with the framework inside the home. There is water damage and termite damage, and sagging in the roof. Yay!
Considering that asbestos was found in the house, this has gone a lot smoother than I expected. The house was not built by someone who was proficient, and the sheetrock has just peeled right off of the walls. The ceiling in many places was about to fall down anyway, and so that has been pretty painless as well.
I am treating this project as a great learning experience and am trying to meet as many contractors as I possibly can in my area.
So far I have met quite a few helpful individuals who have given me harsh realizations (which is exactly what I want), and have taken time out of their days to chat with me about what they think would need to be done to the house in order for it to be the best it can be.
I am trying to stay positive right now, knowing that I may have bit off more than I can chew, but realizing that this is a long road that I am traveling down and am just at the starting line.
Onward and upward
Next week for me is a short one, as we are going out of town to visit family. I need to cram a lot of stuff into two days. Most important next step for me right now is getting a framer out to look at the house and see all that is going to need to be done to bolster the roof and fix all the rotten pieces of wood that used to be the walls.
I am going to take a long look at how I can create a new layout to make a more efficient use of the space in the home and add a washer/dryer somewhere.
Wish me luck!!!