Author Topic: Making 200k in equity in 6mo - Back down the rabbit hole, long distance RE  (Read 9969 times)

robartsd

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I like the color.yourtrim isn't as wide as the inspiration picture but it looks nice.
Also, your concept photo had more trim painted (corners of building in addition to window frames). I agree that the blue is a bit darker than I would want, but I highly doubt that will have any influence on the potential renters.

sammybiker

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    • Making 200k in equity in 6mo - Back down the rabbit hole, long distance RE
Thanks @MayDay & @robartsd  for the feedback.  I've accepted the exterior paint as it is.  I got a little emotional as this is the highest end home I've done and I was really pleased with how well the interior came together, only to drop the ball on the exterior and have it come out not as planned.  But it's alright - it's a solid improvement over the existing condition.

sammybiker

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Update

Property #2


Interior demo is complete, interior paint started.  I will be going with granite in the kitchen but only repainting the existing cabinets.

000d700b4aaa1109edbc064204d3ffe9efcada2e-1 by sam burn, on Flickr

ac2086a0741dd6d9827abc491d90fa26029d4bdb-1 by sam burn, on Flickr

987a57bc99249bc844ff65bebc4436fc8a953c93-1 by sam burn, on Flickr

Not a whole lot of other changes so far.  Estimates finalized and updated below showing the actual estimate vs the first pass along with a couple bits of scope growth.

Estimate Update

Paint interior all-in @ 4000  actual $3350 - labor came in a little lower, was able to use some leftover ceiling paint from the Property #1.

Flooring Install all-in @ 5000  actual $4400 - went with some lower priced laminate and was able to use some leftover bathroom flooring from Property #1.

Floor Baseboard all-in @ 1700  actual $1205 - labor was a little cheaper, also some materials leftover from Property #1.

Kitchen Cabinets + Countertop all-in @ 7000  actual $3200 - leaving existing cabinets in place, installing granite, new sink, new hardware.

Kitchen Sink/Faucet all-in @ 300  actual $200 - sink included above, new faucet remaining.

Bathroom Rehab x2 Cosmetic all-in @ 3200 actual $3200 - no change.

New Lighting Interior/Exterior all-in @ 3000  actual $1500 - overestimated this one.

Exterior Paint all-in @ 4000 actual $3500 - overestimated this one a bit, also using some materials leftover from Property #1.

Misc all-in @ 10000 actual $6000 - I've applied some of this to the below scope that was added.

Demo of wall/opening up the living to kitchen area, reinforcing overhead beam, all-in @ $1200

Removal of popcorn ceilings, drywall repairs throughout house all-in @ $1500

Exterior repairs, rebuild of storage area all-in $4500

New Fridge all-in $800

Dumpster rental all-in $700

Project Coordinator all-in @ 1800

TOTAL @ 40,000  actual $37,055

« Last Edit: August 02, 2018, 04:39:48 PM by sammybiker »

Another Reader

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Thanks @MayDay & @robartsd  for the feedback.  I've accepted the exterior paint as it is.  I got a little emotional as this is the highest end home I've done and I was really pleased with how well the interior came together, only to drop the ball on the exterior and have it come out not as planned.  But it's alright - it's a solid improvement over the existing condition.

Tenants care less than buyers.  When it's time to sell, you can repaint.

sammybiker

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You're right, thanks @Another Reader

Update

Property #1
  Just doing the finishing touches, fireplace going in this week.  French door replacement pushed out again, going to swap to sliding doors and hope to finish by 31-Aug.  Appraisal scheduled for next Tuesday, 14-Aug.

Property #2    Interior paint complete, kitchen paint on-going.  Exterior repairs and paint to kick off next week as well as interior flooring.

Refi loan approved for property #2 today, which is awesome.  Appraisal will be scheduled a couple weeks out as the rehab completes.

BicycleB

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Sammybiker, great thread!

As a newbie, it's exciting to see real examples. Good luck in all 5 properties.

Trifele

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Love the thread @sammybiker.  Following with interest.

Can you explain more about the refi on property #2?  Apologies if I missed it somewhere. I am totally ignorant about this -- just surprised that you would refinance only a month into it?     

sammybiker

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Thanks @BicycleB

Thanks @Trifele - on the refinance, it's a process and starting it now is good timing to be cashed out in another 6 weeks or so.  Property 2 is a pretty light rehab overall and should be finished in time to have an appraisal done at the end of August.

sammybiker

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Property #1 Update

Appraisal came back yesterday at $98/sq ft.  I was really looking for $100-103 but I'm satisfied.  There were a number of uncompleted items (glass repair upstairs, x5 door replacement downstairs) that I think dragged it down a couple of bucks and I made the decision not to reschedule the appraisal in effort to get my funds back and go tackle more properties.  I should have the refi funds in my account in two weeks.

I'm all-in at $62/sq ft.  $98-$62 = $36/sq ft *2329 sq ft = $83.8k in equity and most definitely a home run.

The pro photographer is working as I type this and I hope to provide the final, final photos early next week along with an update on Property #2 and hopefully a third property under contract.
« Last Edit: August 18, 2018, 10:11:01 AM by sammybiker »


GreenEggs

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Good thread.  Really appreciate all the details.

Another Reader

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I would probably add some more kitchen lighting.  It would be hard to cook with the lighting you currently have.  Otherwise, it looks great!

sammybiker

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Thanks for the feedback @GreenEggs  & @Another Reader

Another Reader

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No exhaust hood over the stove, either.  A lot of grease will settle on the nearby surfaces if that is not fixed.

Dicey

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Okay, if we're getting into the weeds, I'll second the other suggestions and add the bypass closet doors need pulls and OMG that single bathroom vanity is way too small. At the very least, install some kind of shelving in there. Overall, it looks excellent!

sammybiker

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Good observations @Another Reader  &  @Dicey

I hear you on the exhaust hood.  Wasn't sure on that one but obviously omitted in the end to reduce scope.  I have a small make ready list for the property management crew and I'll have them price out install.

Good call on the closet pulls, I overlooked that, Dicey.

tralfamadorian

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Looks great! If we're nitpicking, I agree on some undercabinet LEDs for the kitchen as well as a backsplash and exhaust fan for the stove. Also, some photoshop brightening- some rooms look darker than I bet they do in person.

sammybiker

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Noted @tralfamadorian thanks for your feedback.

sammybiker

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Property #2 Update

Floors are in, just wrapping up some trim, transitions and other bits and pieces.  I'm pretty satisfied with them at the .55c/sq ft price point.

Bathroom rehab to be completed this week.

Exterior repairs and paint slipped a bit, revised to start next week, appraisal to be scheduled for early September.

c86f7f586d8b681a609adffeabc2180d24dae1a3-1 by sam burn, on Flickr

d650065bf040ae72007054f0f6543d4dc7ff8ffe-1 by sam burn, on Flickr

cb134c145b18fde4661d9a1396c2b44c471b6c93-1 by sam burn, on Flickr

ab47cf7fc3dd347ba584da8305adc9e52cca9004-1 by sam burn, on Flickr

75fe26bd5039ced9cb261328cbbbb87cb80b52a9-1 by sam burn, on Flickr

8c012ab7606bd52e55a0c70bfced8f53b114ddb7-1 by sam burn, on Flickr

4b1f22d5b1c2c4b8a8ccd7b65f84f0613504a047-1 by sam burn, on Flickr

3e83b95ef33227ce6131f9ffda0ee506cf58cccf-1 by sam burn, on Flickr


GreenEggs

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I think the place looks terrific.


I doubt it would make any difference for a rental, but if you were selling I'd recommend pressure washing the driveway. 
« Last Edit: August 20, 2018, 08:56:01 PM by GreenEggs »

Stachetastic

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.55c/ft flooring??? Tell me more. Please. I love this stuff for our rentals, but we can rarely find it this cheap.

sammybiker

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Thanks @GreenEggs

@Stachetastic  See the below link - it's cheap but I had to pick it up myself when I was in town a few weeks ago.  If you have to ship it, you'll end up paying about .75c/sq ft all-in.

I also find Lumber Liquidators to have decent stuff in the .55-.70c range but I liked the darker tones on this stuff from Floor and Decor.

I would say the quality is slightly less than the homedepot trafficmaster stuff, which is my benchmark for low-cost lamanite and runs .85c+

https://www.flooranddecor.com/laminate-laminate/phoenix-hickory-2-strip-laminate-100500685.html#start=2

Stachetastic

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Thanks @GreenEggs

@Stachetastic  See the below link - it's cheap but I had to pick it up myself when I was in town a few weeks ago.  If you have to ship it, you'll end up paying about .75c/sq ft all-in.

I also find Lumber Liquidators to have decent stuff in the .55-.70c range but I liked the darker tones on this stuff from Floor and Decor.

I would say the quality is slightly less than the homedepot trafficmaster stuff, which is my benchmark for low-cost lamanite and runs .85c+

https://www.flooranddecor.com/laminate-laminate/phoenix-hickory-2-strip-laminate-100500685.html#start=2

Thanks! I'm not familiar with this store, but I see there's one a little less than an hour from me. I'll be sure to keep it in mind the next time I'm in the market for flooring. (Which may be soon, as we've currently got our eye on another property.)

sammybiker

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@Stachetastic  Sounds good, an hour away isn't bad at all.  Good luck!

sammybiker

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I'm excited to post that property #3 is now under contract.

Property #3
Purchase Price:  $44.5k
Estimated Rehab:  $60k
Estimated After Repair Value: $137k ($98 sq ft)
Estimated Monthly Rent:  $1500
Source:  MLS
Funding:  Purchasing cash via line of credit, private money
Schedule:  Unknown

This is another flood house just around the corner from Property #1.  That's great news as it's in a super desirable neighborhood and I already have the comps.  The bad news is that it's been sitting since Harvey, never being demo'd, dried out and made sure the house was clean.

I haven't been able to get my contractor inside the property yet but he was able to do a walk around yesterday.  Below are my initial estimates for rehab and I'll get to see how those shake out vs reality in the coming days as we get access to the property and can do a detailed scope of work.

Demo of all drywall (walls and ceilings) @ $5000
Drying, treating and obtaining a mold free certificate @ $5000
Insulation, Drywall & Paint @ $15000
Floor & Trim @ $5000
Kitchen @ $5000
Bathrooms @ $5000
HVAC & Possible Ducting @ $5000
Garage Door @ $3000
Appliances @ $2000
Dumpster @ $2000
Unknowns @ $8000

Total @ $60000

Listing photos suck but it's all I have now.

c896ddc2ae1fc4f0203bf7469668f0a1l-m0xd-w1020_h770_q80 by sam burn, on Flickr

P1124UY-2 by sam burn, on Flickr

P1124UY-3 by sam burn, on Flickr

P1124UY-4 by sam burn, on Flickr

P1124UY-5 by sam burn, on Flickr

P1124UY-6 by sam burn, on Flickr
« Last Edit: August 21, 2018, 07:36:28 AM by sammybiker »

BicycleB

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Congrats, @sammybiker!  Good luck with this one.

You sure seem to have identified an area with good ratio of rent to purchase price, plus a niche for finding properties. Very admirable.

sammybiker

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Thanks @BicycleB

sammybiker

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Property #1 Update

Refi closing is today.  It will be my first time using an online notary, so we'll see how this goes.  Hopefully all goes smoothly and I won't have to make any flights for closing.  Texas has some odd restrictions, I suppose dating back to backlash post-80s savings and loan debacle.

Keys will be picked-up by the property manager today.

Property #2

Bathrooms and exterior paint in process but currently paused due to rain all this week.  Hope to get back on it early next week.  Trying to get the appraisal scheduled for next Friday, 7-Sept.

Knock on wood, budget is very intact with this property.  The joys of a non-flood, light cosmetic rehab.

Some progress photos shown below:

f14454127b43eede47aca8b2001ee2d9d3e23b27-1 by sam burn, on Flickr

13d577c3171f12f7940d612819e794b48a58f845-1 by sam burn, on Flickr

bc0eb22d5d5ce2688e2eaee053e7a033b7a7645b-1 by sam burn, on Flickr

1cd5b5cec6a6118f2b33e9de13b8bcfa3e70c4b3-1 by sam burn, on Flickr

67d4a3b3c51ab0c9da59919f2d6c98af30e416ff-1 by sam burn, on Flickr

f14454127b43eede47aca8b2001ee2d9d3e23b27-1 by sam burn, on Flickr

5204cd30479eeb0110ea2256bf7958b07dc6535e-1 by sam burn, on Flickr

55ea8ca16480a2ce88434d3b0115e239b631dcdc-1 by sam burn, on Flickr

a1bf42c5905365a8b9887ae23d0aaf43b0c72212-1 by sam burn, on Flickr

Property #3

Worked out a scope and estimate with my contractor - looking at about $26k, labor only, to get it demo'd mold free, insulated, drywalled, painted, floored, baseboards, door trim, doors hung, bathrooms done.  I'm pretty happy with that.

I've bumped the all-in budget up to $70k, which is pretty conservative and includes a little higher end finishes, taking some lessons learned from Property #1.  I may be able to come in less but I want to keep a lot of meat on this one due to the unknowns of getting a property dried out and mold free.

This property is in an A+ area so I'm OK trading less equity (maybe making $25-30k) for a good cashflow house.


tralfamadorian

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Nice update! #2 looks great.

I used an online notary last month for non-RE reasons and it was very quick and easy. Hope your experience is the same.

sammybiker

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OK, thanks @tralfamadorian  glad to hear it was pretty painless.

I'll know here in a couple of hours :D

sammybiker

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Re: Making 200k in equity in 6mo - Back down the rabbit hole, long distance RE
« Reply #80 on: September 10, 2018, 12:05:24 PM »
Update

Property #1: 
  Property management has possession now, completing a couple little things here and there and we'll be getting a tenant placed.

Online notary was a fail as the title company refused online notary at the last minute.  I'm flying into Washington State this weekend for another line of credit notary and will do both of them at the same time while escaping this Mexico heat for a couple of days.  I'm definitely looking forward to completing this first refi.

Property #2: Granite installed and backsplash on-going. Exterior paint complete.

Found a leak in the kitchen that requires some wall demo to get access.  Working through that now and will understand the full impact later tomorrow. ALSO, had the HVAC go down.  It's not an old unit so I'm confident we can get it squared-up.  A few parts on order, should be squared away by this weekend. 

With the backsplash, plumbing and HVAC issues, budget with bust a little but nothing bad. 

Planning to have final professional photos done this weekend.  Appraisal is next Wednesday.  I'll schedule the close date around late-Oct when I'll be back in Texas for a few days.

Property #3:  No real update, spoke with the title office this morning, still working to get the title paperwork completed, looks like closing should be later this month.  I'm totally OK with that as I'm nearly out of funds, hence the flight to Washington State this weekend to ensure the refi and line of credit happen.

Property 2 progress photos below

fe3acd79bb5c2f301bf455113ee935c9f66d7a2e-1 by sam burn, on Flickr

2e7ded638493094224d8618cc029dbdd507ed0bf-1 by sam burn, on Flickr

ebbfb334a53b9114f1095cf917520460afa55622-1 by sam burn, on Flickr

8963e5186bdfb029d25f5a225869be19d16444e2-1 by sam burn, on Flickr

826d41466a123d5db85ec3ca92d3579f47eda1f7-1 by sam burn, on Flickr

6c45ed2942729c321da9f3e88e151242f265028f-1 by sam burn, on Flickr

0ed1d9083704fdcd7339bd37b8ce22c825e6db88-1 by sam burn, on Flickr

43c7b8d5b4aec5d1272087a8d1c117c890bce2a3-1 by sam burn, on Flickr

a551da9bb006500322e5fb3ee2e9b18fee79e332-1 by sam burn, on Flickr

f7d8445d90f324af10d92306b2b8c2db0e97d115-1 by sam burn, on Flickr

46567955f387b3cf8846d7ca4aed30fb3ca79a6d-1 by sam burn, on Flickr

18614e0fec046371792f29857bb323555594f6c5-1 by sam burn, on Flickr


« Last Edit: September 13, 2018, 01:09:50 PM by sammybiker »

brian.ellwood

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Re: Making 200k in equity in 6mo - Back down the rabbit hole, long distance RE
« Reply #81 on: September 13, 2018, 11:15:13 AM »
dude, you're crushing it. Thanks for sharing all of this.

I actually do something very similar.

I live in Colorado but invest in TN. Have project manager on the ground to manage the rehabs, then rent them out and refinance.

Let's connect sometime!

Another Reader

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Re: Making 200k in equity in 6mo - Back down the rabbit hole, long distance RE
« Reply #82 on: September 13, 2018, 02:37:27 PM »
My advice is to clean and paint the inside of the cabinets and put in a nice cook top.  No one is going to want to cook on the old one.  It lowers the appeal of the entire kitchen.  Depending on the condition of the microwave, I might replace it as well.  All new gleaming stainless is going to get people to open their wallets.

sammybiker

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Re: Making 200k in equity in 6mo - Back down the rabbit hole, long distance RE
« Reply #83 on: September 13, 2018, 08:03:38 PM »
Damn, @Another Reader  - the truth hurts.

I'll look into it - thanks for the feedback.

sammybiker

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Re: Making 200k in equity in 6mo - Back down the rabbit hole, long distance RE
« Reply #84 on: September 20, 2018, 01:37:19 PM »
Update

Property #1


Goes on the rental market next week.  Refi is complete and funds dispersed to my account.  Woo. 

Property #2

Plumbing fix completed and the HVAC was a simple fix, both not exceeding $1000 combined, eating up the remaining misc budget.

Photo update below, appraisal is tomorrow, rehab completed, total rehab costs @ $33,405, all-in with purchase @ $120,905.  I'm looking for the appraisal to come out at $157,000.  We'll find out the results next week and I'll probably fly back to Houston to close this the following weekend.

@Another Reader I had the cleaners give the stove top a good scrub and it looks slightly better.  That said, property management will likely replace it ($250) along with the microwave ($200) when they take it over next week.  We also added a vent hood in Property #1, as I think you recommended.

Property #3

I flew to Washington State last weekend to have this closing notarized (along with property #1 closing notarized and another line of credit notarized).  Paperwork received by the title office yesterday, funds wired yesterday, closing is officially today and we should have keys this evening/tomorrow.  Once keys are in hand, my contractor will commence demo on Saturday.

Property #4

A good investor friend shot me a note over the weekend that he had a property in my area that he'd wholesale.  I looked up the address, we worked out a price and he went back to the seller.  Monday came along and we're under contract.  Rough details below with some initial photos.

2300 sq ft, purchase price $115k.  Rehab estimate ~$40k-ish.  Haven't been able to walk through and the pictures look rough - no flooding but heavy cosmetic w/indoor smokers.  That said, it's in a great location, great schools and after repair value will be around about $200k.  As always, I'll try and get aggressive on that budget and see if I can shave off a bit here and there.  Probably won't close on this until mid-Oct.

Photo updates below, enjoy.

Property #2 Photo Updates

P1122186 by sam burn, on Flickr

P1122187 by sam burn, on Flickr

P1122188 by sam burn, on Flickr

P1122189 by sam burn, on Flickr

P1122190 by sam burn, on Flickr

P1122191 by sam burn, on Flickr

P1122192 by sam burn, on Flickr

P1122193 by sam burn, on Flickr

P1122195 by sam burn, on Flickr

P1122196 by sam burn, on Flickr

P1122197 by sam burn, on Flickr

P1122198 by sam burn, on Flickr

P1122199 by sam burn, on Flickr

P1122201 by sam burn, on Flickr

Property #4 Photos

P1122156 by sam burn, on Flickr

P1122167 by sam burn, on Flickr

P1122166 by sam burn, on Flickr

P1122168 by sam burn, on Flickr

P1122169 by sam burn, on Flickr

P1122171 by sam burn, on Flickr

P1122172 by sam burn, on Flickr

P1122173 by sam burn, on Flickr

P1122174 by sam burn, on Flickr

P1122176 by sam burn, on Flickr

P1122177 by sam burn, on Flickr

P1122178 by sam burn, on Flickr

P1122179 by sam burn, on Flickr

P1122180 by sam burn, on Flickr

P1122181 by sam burn, on Flickr

P1122182 by sam burn, on Flickr

P1122183 by sam burn, on Flickr

P1122184 by sam burn, on Flickr

P1122185 by sam burn, on Flickr
« Last Edit: September 20, 2018, 02:02:40 PM by sammybiker »

tralfamadorian

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Re: Making 200k in equity in 6mo - Back down the rabbit hole, long distance RE
« Reply #85 on: September 20, 2018, 02:47:39 PM »
#2 looks awesome @sammybiker !

Another Reader

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Re: Making 200k in equity in 6mo - Back down the rabbit hole, long distance RE
« Reply #86 on: September 20, 2018, 04:03:38 PM »
When you are a landlord, the market will tell you what is and is not acceptable.  If you get objections about things like appliances either directly or indirectly from a lack of applications from qualified tenants, my experience has been it is the financially wise choice to replace whatever is causing the objections.  Investing a few more dollars up front to nab the better tenant generally pays off over time.

sammybiker

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Re: Making 200k in equity in 6mo - Back down the rabbit hole, long distance RE
« Reply #87 on: September 21, 2018, 11:11:56 AM »
Thanks for your feedback @Another Reader  & @tralfamadorian

Another Reader

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Re: Making 200k in equity in 6mo - Back down the rabbit hole, long distance RE
« Reply #88 on: September 21, 2018, 12:54:26 PM »
You got your work cut out for you on Property #4...  A lot of rotten stuff behind the tub enclosures for starters.

sammybiker

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Re: Making 200k in equity in 6mo - Back down the rabbit hole, long distance RE
« Reply #89 on: September 21, 2018, 02:00:45 PM »
Yeah, you're right @Another Reader - they are nasty.

I'm going go full gut on those bathrooms, no other choice really.  The good news is that they both are pretty decent size and will show well once done up.

sammybiker

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Re: Making 200k in equity in 6mo - Back down the rabbit hole, long distance RE
« Reply #90 on: September 24, 2018, 02:39:18 PM »
Update

Property #2  Appraisal came back this afternoon @ $131k.  I was expecting $157k and am pretty disappointed.  On the phone with my banker, he's also surprised, which is good.  It's such a gross delta for the area, it doesn't make sense. 

I have a call with the appraiser in about an hour and we'll see where we get but I've already requested another appraisal be ordered.

I had an after repair appraisal performed before purchase to confirm my comps - $157k right on the dot.

Property #3

Demo has commenced.

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Another Reader

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Re: Making 200k in equity in 6mo - Back down the rabbit hole, long distance RE
« Reply #91 on: September 24, 2018, 03:58:02 PM »
Judging from the pictures, the smell of mold has to be a problem...

sammybiker

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Re: Making 200k in equity in 6mo - Back down the rabbit hole, long distance RE
« Reply #92 on: September 24, 2018, 04:29:57 PM »
I don't follow?

Judging from the pictures, the smell of mold has to be a problem...

Another Reader

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Re: Making 200k in equity in 6mo - Back down the rabbit hole, long distance RE
« Reply #93 on: September 24, 2018, 05:16:52 PM »
The insulation looks like it has been wet and there may have been mold in it and possibly on the framing.  Am I wrong?

Dicey

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Re: Making 200k in equity in 6mo - Back down the rabbit hole, long distance RE
« Reply #94 on: September 24, 2018, 11:00:54 PM »
The insulation looks like it has been wet and there may have been mold in it and possibly on the framing.  Am I wrong?
We just took all the drywall down in a flip house. Some of the blown-in insulation was a pretty pink but most of it was grey, just like this stuff. Smart DH said the pink is fiberglass and the grey is cellulose. How the grey stuff got there is kind of interesting. The previous owner bought all new double pane windows (for an exorbitant price). The window company added the cellulose insulation for "free". She then raved about how much quieter the house was and how much her utility bills dropped. DH says the window company was smart to add the cellulose insulation, which was probably more responsible for the positive changes the homeowner noticed than the very overpriced windows, which BTW had nothing but shims under the trim. No foam, no nothing. Asshats.

As to the insulation, I now have 65 bags of it on our back porch, waiting for it to get cool enough to install it in our attic. We were going to give it away, but we figured it wouldn't hurt to add it to ours. I was the one who donned the Tyvek suit and masked up to collect it and then transported it home about a dozen bags at a time in the full heat of summer, so I'm all in for using it for our own benefit.

I can't tell if SammyB has a mold issue or not, just that grey doesn't automatically mean mold or moisture. I defer to AR's experience and wisdom. However for Sammy's sake, I do sincerely hope there is no mold.

sammybiker

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Re: Making 200k in equity in 6mo - Back down the rabbit hole, long distance RE
« Reply #95 on: September 25, 2018, 06:22:28 AM »
@Another Reader  I read your comment re: mold smell on house #3 to have something to do with the low appraisal #2 - sorry, misread on my part.

Yes, house #3 has mold.  We're going to start drying it out today and have the pre-remediation inspection with the company that will ultimately issue the remediation certificate before we can move forward with drywall, etc.  Should be interesting but I'm hoping to be dried out and certified mold free in about two weeks.

@Dicey That's funny (and smart) about the window company.  Speaking of, I need to add some blow-in insulation in the attic to my budget.

But yes, there most definitely is mold.  The family evacuated the house during Harvey in Aug-2017, the house took on 2-3ft of water and it just sat and manifested for 12 months. 

Another Reader

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Re: Making 200k in equity in 6mo - Back down the rabbit hole, long distance RE
« Reply #96 on: September 25, 2018, 06:42:35 AM »
The insulation looks like it has been wet and there may have been mold in it and possibly on the framing.  Am I wrong?
We just took all the drywall down in a flip house. Some of the blown-in insulation was a pretty pink but most of it was grey, just like this stuff. Smart DH said the pink is fiberglass and the grey is cellulose. How the grey stuff got there is kind of interesting. The previous owner bought all new double pane windows (for an exorbitant price). The window company added the cellulose insulation for "free". She then raved about how much quieter the house was and how much her utility bills dropped. DH says the window company was smart to add the cellulose insulation, which was probably more responsible for the positive changes the homeowner noticed than the very overpriced windows, which BTW had nothing but shims under the trim. No foam, no nothing. Asshats.

As to the insulation, I now have 65 bags of it on our back porch, waiting for it to get cool enough to install it in our attic. We were going to give it away, but we figured it wouldn't hurt to add it to ours. I was the one who donned the Tyvek suit and masked up to collect it and then transported it home about a dozen bags at a time in the full heat of summer, so I'm all in for using it for our own benefit.

I can't tell if SammyB has a mold issue or not, just that grey doesn't automatically mean mold or moisture. I defer to AR's experience and wisdom. However for Sammy's sake, I do sincerely hope there is no mold.

It may depend on the age of the house, but in California, all I see is fiberglass.  In Arizona, all I see in older houses is cellulose.  Having seen wet cellulose where there have been plumbing leaks, I figured that was a problem in this house.

sammybiker

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Re: Making 200k in equity in 6mo - Back down the rabbit hole, long distance RE
« Reply #97 on: September 28, 2018, 01:43:49 PM »
Update

Property #2
New appraisal came back at $163k.  My target was $157k, so I'm happy and relieved to hear this.

The bank is putting together the closing docs now and I'll sign the papers when I'm back in Texas in October.


robartsd

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Re: Making 200k in equity in 6mo - Back down the rabbit hole, long distance RE
« Reply #98 on: September 28, 2018, 02:36:12 PM »
It may depend on the age of the house, but in California, all I see is fiberglass.  In Arizona, all I see in older houses is cellulose.  Having seen wet cellulose where there have been plumbing leaks, I figured that was a problem in this house.
I think age of the house is likely a bigger factor than regional differences between Arizona and California. I've seen plenty of blown in cellulose in older California houses too.

sammybiker

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Re: Making 200k in equity in 6mo - Back down the rabbit hole, long distance RE
« Reply #99 on: September 29, 2018, 02:53:47 PM »
Update

Property #3 Demo is complete, now have (4) large fans going and (2) dehumidifiers to dry the place out. 

Had the mold-inspector perform a pre-treatment inspection, review the cleaning procedure with my contractor and take initial samples. 

Hope to have the cleaning process completed towards the end of this week and we'll have the mold inspector come back out, take post-remediation samples and then, pending good results, we'll have our mold free cert and can proceed with drywall.

Some early budget increases that I've applied some of the $8k misc budget to:

- HVAC.  I should have known but due to the state of the property, all of the ducting had to be demo'd along with the inside unit.  Outside compressor should be fine.  +$2k
- Dumpsters - I budgeted for 2 but we'll need three.  +$700

e886609e496ae512e157e3d5f1039a14b01523a6-1 by sam burn, on Flickr

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« Last Edit: September 29, 2018, 02:55:31 PM by sammybiker »