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I am originally from South East Louisiana. I belonged to a large REIA in New Orleans.  I hunted down and visited a couple of Real Estate Investment Groups in the Knoxville area. One disappeared and the other is a great group (visit both of their links on this website). 

There wasn't a group that allowed online participation on the Web.

That is why I created KnoxREI.com  Join me and create a Great Online REI Network. 
KnoxREI.com
Engert Rd. Blog

July 25, 2007

I closed on this house on the 25th and the rehab has started. I am confident in my numbers and the team I have assembled to do the work. That is today...let's see in 3 months...


So, I decided to post a blog on the website because I owe a debt of gratitude to the community here, I promise to write my blog here, the good, the bad, and the ugly...and the finished pretty, and the final numbers when it closes in 3.5 months...  


This house was purchased in Nov of last year by another investor, he took the home Sub2.  The house had and first and a second. This investor had 12 rehabs going at one time.  I bought mine from a list of six that he emailed to me.  I found him by reading the two week old classifieds, I always wait a couple of weeks and then call to see who is motivated.


The house was in mid rehab when I bought it. This is a Zone 6 house.  Properly done rehabs are selling in 30 to 40 days and for top dollar, those that match the level of the neighborhood.  Poorly done Rehabs or improperly priced homeowner sales are taking 100 days.  Steve Cook's rehabbing methods are working in this neighborhood. ( I did a walk thru, two blocks away of a rehab done right, a couple of days ago that will blow the comps into the Stratosphere).


I plan on replacing the windows, replacing the HVAC, repainting in and out, resealing the asphalt driveway, landscaping to match the neighborhood.  I am installing mid grade cabinets with crown and other design features, pendant lights, above and below cabinet lights, and granite tile counter tops.  The hardwood floors are being refinished and the remainder of the floors are ceramic tile (most already installed by the last investor) no carpet.  I am replacing all doors with prehung panel units, the baseboards with a taller profile and adding crown to the master bed and living areas.


I plan on doing the landscaping work, and my wife plans on installing the tile countertops and backsplash.  We both are doing some of the initial pre work, TSP the walls and remove all trash from site before any of the work starts. She is working with the trades with the design elements to insure that the finished product is female friendly and I am working on the money end and practical issues.


Please comment on things that you know or think I am doing wrong.  You are also welcome to comment on anything you think I am doing right too. I am used to hearing that things I want to do, can’t be done. And sometimes I find out its true, they can’t be done.  I come here to learn, to be your student. Now this student will share the trials and tribulations of this endeavor with you, the teachers and fellow students.  I want your help, and all of you have a little bit of you included in this project. 




Today is  Wednesday July 25, 2007. Day 0
I bought my first major rehab project today. I contracted this sale two weeks ago.  I used a hard money loan to fund the purchase price and I intend to fund the repairs out of pocket.  After the closing I was able to transfer the electric and the water service. And now I am creating this chronicle of events yet to come.


 

I call this shot, full frontal, soon to be nude. Anyone like blue?



Here is the back.


Welcome to the Jungle.



Guess which State we are in?



Kitchen is prepped and ready to go!



Gotta love 27 years of Hardwood protection in Orange.



The previous investor laid tile everywhere that wasn't hardwoods.  Window A/Cs gotta go and so do the sliders.



Garage already closed in, somewhat...that is daylight.


Today is Thursday July 26, 2007. Day 1
I placed my order for Alside Vinyl Replacement Windows.  We are staying with the Beige Columns on the porch so we went with the Beige Windows. Two weeks given as ETA to set appt to install.

Today is Saturday July 28, 2007. Day 3
I met my HVAC guy on site today.  He is Supposed to start installing the new unit by Tues, in 3 days.  He will coordinate installation with a handyman to install drop stairs to the attic After the unit is lifted up.  I set up an appt for Monday for someone to give me an estimate to clean the roof.  I set up an appt for Tues nite for Kitchen Design at Lowes.  I set up an appt with my Reno Contractor for Monday Nite to firm up all responsibilities and look at his computer generated color and trim schemes.  I sold the left behind refrigerator and stove to the AC guy, actually a little wholesale bartering. I removed almost everything loose off of the upper floor and my boss, Connie, vacumned and mopped the floors to make the workplace clean.  I was going to cut grass today, but it rained. 

Today is Sunday July 29, 2007. Day 4
Cut the grass today.  Removed trash pile.  More cleanup inside, and removed old dishwasher and washer from the site.

Today is Monday July 30, 2007. Day 5
Set up Roof Cleaning on this coming Friday, and thanks to Poobaa for idea to dig a gravel drain for the chlorinated runoff.  Reminder: pick up a bag of gravel tomorrow at Lowes.  I had two Roof Cleaners set up to give me estimates today. One called me back today, guess who got the job.

Connie picked me up at Lunch today to go to a Kitchen Outlet, thanks to Mom23Boys for the idea, I had already been given this one as a referal by another local investor, then I made another phone call to try to get a few more choices, and I did, to which I gave the names to Connie for her to visit today. So now we have two cabinet estimates, tomorrow nite we get one from Lowes.  I probably will get a lot but not all materials from Lowes, as I have a Project Card that will more than cover all materials ( 6 months no interest and no payments with initial $1000 purchase). OPM for free.

Now for the fun part of today.  The delays have started already.  Contractor that I chose (I had two come out, this one is a direct referal) came out Saturday a week ago before I bought the place last Wednsday, was supposed to come out tonite to finalize everything.  We talked this afternoon, has a funeral, will come out Wednesday nite, and is ready to start first thing next week. You always get the benefit of the doubt, first time.

Reminds me, I was supposed to hear from the A/C guy today...

Today is Tuesday July 31, 2007. Day 6
Connie went to get some forgotten measurements minutes before her third cabinet appt.  She couldn't get in, she had 4 keys but couldn't get in.  I have the original key and she had 4 made, we found out with the wrong blanks...

After work today we went to Lowes for there cabinet design thingee, not happening, going to go with the first Cabinet Outlet, and still stretch the budget some, but there is room in the budget. 


I also bought the drop down attic stairs for the handyman to install when the A/C guy comes out tomorrow to replace the old unit. Also bought my first lockbox and got some good keys recut.  Also bought a couple of bags of gravel to put in the bleach diluting hole for the roof cleaners, I will need to dig that hole before Friday morning...maybe tomorrow nite when we meet with Contractor at the house. 


When I went to the house to do all that, guess what was on the door, an envelope...no cash...the estimate from the first roof cleaning company I called, you snooze you lose. I can't believe he didn't call me...


Hopefully someone besides me and Connie will be working on the house tomorrow. 


Tomorrow is Day 7


Today is Wednesday August 1, 2007. Day 7
Okay, today is Day 7, is someone finally working on this place besides Craig and Connie? You betcha, the A/C guy came out and the handyman came out and now I have a New A/C system and a hung up attic retractable ladder.  But does it cool? Not yet. A/C guy says when the compressor failed it blew alot of oil into the 40 foot of copper line between the inside and the outside units and it probably should be replaced, so I said, sock it to me (first cost overrun, thats what the contigency fund is for, already?).

Just before everyone was leaving I noticed that the 2x4 that was acting as a lock on the sliding door at the rear of the house was missing, then I remembered that a piece of wood that now framed my new attic ladder had a kinda familiar look to it.  So, I asked did anyone have a wood saw, cause I was going to need it to make a new lock for the back door out of one of these 2x4's laying in the pile right here....just like magic, a new 2x4 back door lock.

Had an appointment with the Contractor to meet me at the House.  Don't know what happened?  Dissapointed at this point, will see what the deal is when I talk to him. I know that this is a part of this life, so everyone gets a chance.


Today is Thursday August 2, 2007. Day 8
Violins please!!!  Ok, here goes...almost nothing today...unless you count a hole in the ground...

 Poobaas' Hole.  Thanks.

A/C guy decided to come back tomorrow, instead of today, okay as long as you can work in Bleach Showers, actually he said it might cool the attic for him. Whatever works.

Contractor said he can come out Saturday and finalize things.

I drove to a cabinet shop at lunch and over to the house after work to dig a hole for the Roof Cleaner to run his bleach runoff. Thanks Poobaa.

Today is Friday August 3, 2007. Day 9
Guys came out and cleaned the roof, I drove over at lunch time, they were just getting started.  I saw the black run off the roof, really cool.  I never knew.

The A/C guy didn't come out until 3:30, so he didn't finish today. The A/C is in and working, but the extra ductwork I need to run isn't in, and neither is the damper installed between floors.  The attic stairs installation is sub par and someone broke one of the lifters.  A/C work is supposed to be finished Monday.

Today is Saturday August 4, 2007. Day 10
My Contractor came out at 3:30 PM.  His Hard Disk on his laptop had crashed, so we had to rebuild the proposal and re-measure and basicly do our walkthru again.  He left at 9 PM.  He is ready to start working Tuesday August 7, or Day 13. I have a good feeling about working with him and his methods. Connie is in Louisiana today, so she will meet with him on Monday to finalize color choices. I have a short list of things to do on the house myself and I may shorten that list as time goes on.

I have given myself 2 months to finish.  He says he needs 4 weeks.

I need to order a Dumpster, order Cabinets and buy the Materials that I will be buying. I need to look into gutters, as there is some issues there. The windows should be in at the end of the coming week, then that will need to be set up for install.

It finally feels like things are moving along.

Today is Monday August 6, 2007. Day 12
I am happy about some of the things going on with the house, and I am very angry about some others. 

So I will do what I have learned in my proffesional life.  Never write something that somebody else will read when you are angry, unless you are ready for the consequences.  Not today.  So, suffice it to say, 'I AM ANGRY'.

We did meet with Contractor and go over the contract and my wife made sure that she signed it.

It actually is a couple of days later, so here is the rest of the story that I posted on a REI Forum that I frequent.  You can substitute the A/C guy for the bad guy:


Newbie Rehabbers, Don't let this be YOU!!! Others Enjoy.

I told you so.

 

Who told whom? Me to me. Don't let it be you.

 

I shook hands on a $3300 deal for work to be done on my rehab last week. 

 

That was after I had given the lockbox code to the guy to check out the job.

 

When he showed up when I was there, and looked at the job again he said it wasn't enough money, so I said, okay, how much is enough, for I surely don't want you starting a job here and deciding that the job isn't worth finishing from your point of view. Capiche?

 

He said, 'Yup'. So we did a walkthru, and then I called my wife over and had him give her a walkthru of what he was going to do, just to cement in his mind what he was going to be doing.  And kick your self if you do what I did next...I shook his hand, and we wrote down nothing. He said he would finish before last Friday, no problem. You can pay me when it is finished.

 

So, most of you at this point know the 'rest of the story.'

 

He worked on it last Wednesday.  He didn't work on it last Thursday, of course I found out when I drove out to the house on my lunch time.  So, I called and of course he was getting ready to call me, he had bad news and more bad news.  He had found another $475 worth of work that needed to be done, and he had some contract work that he really needed to be doing that day, but he could finish on Friday. Okay by me, go ahead and do the extra work, if that is what is needed, and as long as you are finished before Monday, because I have someone who, you will be in his way if you aren't finished. Okay, Okay.

 

Friday comes along, and comes along, they show up at 3 PM and of course can't finish if they leave at six oclock.  And can we get paid??? Wait, you said you didn't want or need to get paid till you were finished.  See where this is going?

 

So, he said he really needed to pay for materials on his account and make payroll. Okay, I said I will pay you except I will hold the same amount that the bank holds, 25%. $1000.

Yep, kick yourself again, if you r n me.  I split it with him. And Finish on Monday, No Problemo, cause you are holding that big $475. and I will finish up on Monday so I can get paid.  ‘ I should have held $2000.  Then it would have been finished today.  Or even, $3975. which would have been him just keeping his word.

 

Today is Monday, and Guess What?  Nah, it ain’t finished.  They showed up at 3:30 PM and of course I drove over to the house to pay him.  But, Guess What.  He ain’t there, it ain’t finish, he ain’t called.  Guess what they this situation??? That’s right.

 

So, being the good customer I call him up and attempt to explain what it is that I am wanting now, what he gave his word to do by last Friday, then again by today.  And what is the meaning of the deviations from the plan that we did on the 3 walk thrus, but never wrote down.

 

I really had the literal fit when I was told that I was the most impatient customer he had ever had.  And it gets better, read this real good…’What’s your hurry, you have all kinds of stuff left to do, what’s a few more days to you?’  I really took this real good, none of you know me, so I will leave this to your imagination.

 

But, it even got better.  He said he felt like coming back and finishing the job right (imagine that) but he would have to pull a permit, and well you know what that might mean.  Now for those of you who don’t know me, threatening me makes you my bosom buddy for life and then some.

 

This isn’t the end.  But it shoulda, coulda, woulda been with a written contract and scope of work.

 

Newbies, don’t let this be you.

Today is Tuesday August 7, 2007. Day 13
I did order a Dumpster yesterday, and it they did deliver to the site.  Great Service.

My Contractor showed up and gutted the paneling, door frames, and base boards.  Dumpster is half full.  I had already carted the doors away, along with misc. trash.

I met the A/C guy along with my local mentor and I let him do the talking.  Short story:  A/C guy will be back tomorrow and fix everything to my satisfaction.  Cool.  I mostly kept my mouth shut. It wasn't easy.  It was downright awfully hard.

I received a call from a neighbor a block away to come talk to them about buying there house. Double Cool.  I did go talk, and more talk is forthcoming...stay tuned tomorrow.

Oh, and a house a block in the other direction, went on the market a week ago, and tonite it has a Sold hanger on the For Sale Sign and it has been removed from the MLS.  Triple Cool.

Today is Wednesday August 8, 2007. Day 14

Now let me say, if n I were on one of dem der TV Flippin Shows, my house would be finished, right about now....go figure.

But we ain't on no TV, it ain't finish and I ain't none too happy again.

I walked into the house, it was cool, from the A/C....good sign.  I see a written estimate (not from the A/C guy, from a gutter contractor that came by and did a 'WRITTEN ESTIMATE' gotta love it).  I walked thru the main level and checked every vent opening for airflow....good...and that was the last good thing about my visit to my rehab on this day.

I walked downstairs to the basement and walked over to the old garage area to see the new ductwork and

Excuse me my day job computer (not a person) has paged me...its 11:18 PM...gotta love it.

He’s back…..some idiot at work programmed a division calculation and forgot to check if the divisor was zero….oops…that was me…

 

Okay, back to the bad stuff.  Let’s get something straight, you are not going to hear me say, Why me, oh, why me…NO.  This is my fault.  NO WRITTEN CONTRACT and I know better.

 

So, the Ductwork looks sorta like we said, but what are those two vent openings doing 6 inches apart, I am starting to get a bad feeling. I start feeling for Airflow, I said I started feeling for something…oh yea, AIRFLOW…ain’t none of dat around here no mo.  Absolutely no airflow out any vents downstairs.  This ain’t good.

 

About this time Mr. A.C. the A/C guy got out of his truck and asked me ‘how’s it going’.

 

‘Not too good Mr. A.C.’.  The ductwork looks good but I have no airflow.  ‘Yea, but that ain’t my problem’.  ‘ Your mentor told me to run it this way’. ‘ And where’s my money.’

 

Big Brass Ones, they must be awfully cold in the winter, and it must real rough climbing stairs, and I guess that’s why he doesn’t like it in the attic in the summer. But, anyway,

 

Mr. A.C., this just isn’t going to work, ‘When you told me I needed a new A/C, I told you I had two requirements:  1) the the unit was big enough to handle cooling and heating the house, and 2) that the airflow was sufficient to make the house comfortable and sellable.  So explain to me what is wrong.

 

So, he explained that I needed to run another big hose down from the attic thru one of the other closets on the main level down to the basement and limit the number or runs from each big hose.  So, I said okay, how much and when as I was bending over to pick up my gel pen.

 

Oh, maybe sometime next week or the week after and I am really having a bad day so I will have to get back to you with a price, and by the way can you pay me?

 

I thought it over, for about 10 nanoseconds, that paying him the last $475 was a cheap price for a repeat seminar in life’s basic cash lessons that I was supposed to have learned a long time ago.  I paid him gladly so as I now never have to see him again, and he can’t bad mouth me for not paying him.  I have the canceled checks and his marked paid in full invoice.

 

And guess what, I need to hurry up and call that lady who wants to sell her house, its an hour late.  Too late, I called, no answer.  But, she called later and said just make it over tomorrow. 

 

So, lets see what we have accomplished.  $3975 and a stove gone, and an installed broken retractable attic stairway, and the framing for the stairs having to be done over….not too bad for the first Contractor lesson in my new home town.  Oh, and an installed A/C unit that will at least cool the upper floor in my split level house, and a Reno Contractor who is ready to start framing where I still have to get someone out in the hottest part of the year (service calls taking priority) to come a play clean up after my A/C lesson.

 

I just want it over, how much, so I can write the check.

The Renovation Contractor did make it over to the house and did a little more, that was good. The lady with the house problem called me back and said just come by tomorrow, that was good. We went to Lowes and ordered the kitchen SS appliances for the house, that was good.

So, I told Connie, let's go somewhere I can get a big Margarita(one of about a half dozen a year) to Celebrate: Day 14, TV Flippin House Check Day.

Today is Thursday August 9, 2007. Day 15
Well, I guess I am not TV Flippin Material.  More than two weeks and not finished.

What did we accomplish. 

1)Called the A/C supply house to get a referral of a new A/C guy that can come and finish the job.  He gave me one and I called and he is supposed to come give me an estimate tomorrow.

Shortly after that the first A/C guy called...I was quite taken aback.  What can he want, he has all the money, and I don't have all the system....what can he possibly want.  I found out what he wants, something that I can't possibly give him, his reputation....it seems that his supplier called him, cause he asks me, 'what are you doing calling my supplier?'

Good Question, so, I told him why? Why? Because I have an A/C unit that needs to have a warranty so I can sell this house, just because you decide to walk, that doesn't mean your mess goes away, at least not yet, but guess what??? Your supplier cares a whole hell more than you do, if the retail customers are happy, and I am guessing that is what they told you.  ( I am really guessing that when this other guy reports the mess my house is in, he just might not be buying his A/C units there anymore, something I never thought of till he called, I guess he found or is going to find his reputation after all, all on his own, good for him.)

Then he brought up that 'permit' word again....

I said, You have all the money, you didn't have to do all the work, just go away, trust me you don't want to go there...I know that I can afford a more expensive attorney than you....

So, now.....he asks....WHAT CAN I DO FOR YOU, MR. Craig???

I replied, JUST GET OUT OF MY LIFE and hung up.

2)I drove to the Cabinet Outlet at lunch and picked out the cabinets for the kitchen and two baths. The Cabinet guy is coming out to the house to measure for himself, I like that, and we will order the cabinets tomorrow, with a week and a half turn around.  Cool. 

3) Meet with the Contractor tonite to pay the first weekly labor draw.  They earned it.  We also picked our trim package from his display case.  Base, Door & Window trim, Chair rail, and Crown.  We are on budget with him, no increases, yippee.

4) Drove back home, after stopping at Lowes to pick up another retractable attic stairway, then called that hot lead, made my second investor offer since I moved to Knoxville.  (I do the look at a hundred houses and make a couple of offers, instead of the other way around.  I will have to try it the other way) It was rejected.  But I offered any help she might need understanding the other two offers, which are higher than mine, and truly wished her well.  I did explain my offer and where it came from, and that my offer was to fix it to retail, like her husband had indicated he wanted to see the house be used.  I explained if someone gave her the price she wants, they could only turn around a rent it, with so little spread.  Anyway good practice that makes two offer in Knoxville, whooppee.

5) Hosted the online wholesale weekly swap shop.

6) Drove back to the rehab to drop off the attic stairs, and set down that good old used toilet that was in the leftover trash when I bought the place, so it can be used.

Pretty full day, for a nada TV Flippin Rehabber.

And did I say my pager went off a half dozen times today.  And that I am at the end of a 10 month long IT project at work and it is falling in place on schedule.  Life is Good. Did I mention that I love my Wife.

Today is Sunday August 13, 2007. Day 18

I haven't posted for a couple of days...I have been trying to forgive and forget, can't forgive, and forgetting won't get this house sold.

Here is my A/C job, done by Mr. A/C.


One can see the quality of the work.  This is what $3975.oo and a used stove will get you in Knoxville, just kidding, only from Mr. A/C.  Is that a kink in my new copper line? Gotta love the proffesionalism exhibited here. I didn't see this until you are seeing it, as I held my camera up in the dark to take this with a flash.


Maybe he ran out of tape?


That looks that a world class bend back there.


Why do I see copper?  Looks like he recycled the foam insulation.


I did stick my finger in there, and it was cold, yes sir.  Tape must be real expensive.


Does this even need a comment?


I wonder if this is one of those shortcuts, he said he might have taken, since it was so very hot in the attic?


I am speechless and cooling an attic!


Mere words can not express my delight.



No eighteen hour support here ladies.


Too much support can be a bad thing.


A whole bunch of bad ideas.


This is my second favorite place to stick my fingers on this job.  This is the rerouted main line from the attic down to the basement, ain't much air flowing in there.


This I figure is like those red fingers people post on forums before putting their bifocals on.  This is about as in your face as I think an A/C man can make it.  they were supposed to be about 10 feet apart, and if I was gonna put them that close, I think I would align them a little better.


Here you can see the main line from the attic being choked to death.


Just another dose of professionalism.  I showed him these two dings.  His response, 'I didn't do that'. Okay I give, was it the tooth fairy?

I don't know, maybe I am not cut out to be a rehabber, I expect to pay for quality work, from people who take pride in their work and show up when they say so.  Just kidding, like Thomas Edison, I have just found one way not to do it. He is gonna wish he never cashed my checks, cause I wish him no harm (yea right, maybe next week), but more important, I feel a responsibility to not let him do to any one else what he has done to me.

Today is Monday August 13, 2007. Day 19

I am tired.  Yes some things happened, and Yes some of them were good, and yes some of them were bad.  And I am really tired.  I have 35 sheets of 1/2" 4 x 12 drywall and 10 buckets of mud and a bucket of screws at the house. My 14 windows are in town.  And I still have half a cool house.  I'll tell you about it another day.

Today is Saturday August 18, 2007. Day 24

Time to take stock of where I am.

1) Permit has been pulled.

2) A/C has been big problem.  I have two good written estimates from companies that I trust to finish the work. Need to decide which one to use...fast!

3) Windows are scheduled for changeout on Monday.

4) Roof has been cleaned.

5) Dumpster is in Place.

6) Cabinets and Bathroom vanities have been ordered.

7) Old paneling has been removed and some sheetrock has been hung. Most of the cieling has been scraped and mudded.

8) I need to purchase the remaining ceramic tile, thinset, and grout.

9) Today I purchased three bathroom countertops with underhung bowls, and three faucets.

10) I purchased a new Mailbox and Post today.

11) Thursday purchased new French Door for Patio.

12) Need to review Gutter estimate and decide what to do.

13) Need to decide about getting awning for French Door Entrance (old garage entrance).

14) First thing in morning will change belt on riding mower to be able to cut grass.

15) Need to cut grass, weedeat, and trim bushes and trees.

16) Need to remove old shutters, and buy new ones.

17) Need to buy new Entrance Door.  Found a nice wood 3/4 glass oval with silver lead at Salvage Yard for great price.

18) Need to buy granite tiles and materials to install as new kitchen countertops.

19) Need to buy kitchen sink and faucet.

20) Have purchased some lighting, need to finish this. Need new outlets, new switch plates and outlet plates.

21) Need to buy materials to make driveway pretty and black again.

22) Need to pressure wash bricks, sidewalk, patio, and privacy fence off of patio.

22) Renovation contractor has to finish drywall, chase A/C ducts after corrected, do some framing in old garage area, install interior doors and trim package, paint interior, install new French Door on Patio, remove and reinstall French Door at old garage entrance, remove front door and install new entrance door, paint exterior, stairs have to be addressed along with railings, install kitchen and bathroom cabinets, remove destroyed attic stairs and reframe and install second new attic stairs (thanks again old A/C guy), refinish hardwood floors, etc...

23) and a hundred other things...

Goto Page 2...

Craig