Anatomy Of A Re-model

This is the first in what is sure to be a long (and hopefully interesting) number of entries on the Anatomy of a Re-Modeling.

About a year ago, my wife and I, together with two partners purchased a property in Fredericksburg, Texas. Our intention was to split the property in two pieces and sell them at a profit. The property was split and one half was sold leaving us with the other part to sell off. A re-tooling of this strategy became necessary when the other half refused to sell. We are now partner-less and have decided to pursue our remodeling aspirations with abandon. This is our story.

The property lies at the corner of Austin Street and Bowie Street (see photos) and consists of two old homes located on one large lot (105' x 110'). Our goal is to bring them up to a habitable condition, rent them, cover the mortgage, taxes, etc, and make a small profit.

If you've ever taken on a project like this, please feel free to add your comments/advice for all to see. A sampling of the scope of work includes: stripping exterior asbestos shingles, prep and paint exterior, install new electrical service, install new HVAC, paint interior, re-finish floors, remodel bathroom, tile kitchen, move walls and create closet space, etc., etc. Fully 90% of this will be done with the help of a local contractor(s), but Barb and I will certainly be doing what we can to keep the costs down (i.e. removing asbestos shingles, refinishing floors, interior painting).

Before we can begin in earnest, we have to obtain the necessary financing to get the job done. We've successfully approached the current lien holder with re-financing to include a "cash-out" to provide for remodeling funds. We expect to close on this next week. While there is no "origination fee", we did have to have an appraisal done (on the property as if it was finished) and we will have to pay for a new title policy (rip off!). In addition to that, papers will be signed trading an interest we hold in another property to our partners in return for their interest in this one.

I've jumped the gun a bit and have slowly started taking off the siding. This is not a difficult process but it does require some precautions on my part. As the tiles contain small amounts of asbestos that can become friable when disturbed, I am careful to wear goggles, a dust mask and gloves. Underneath the shingles lies a tar paper backing that also has to be removed, so in addition to removing all the nails used to secure the tiles, I have to remove all the roofing tacks used to secure the tar paper. This is certainly the most tedious part of this whole process. They used a lot of nails.

The debris must be then be double-bagged and taken to the landfill. After this is done on both houses, I'll have to go back and putty/sand all the nail holes. The last step will be to power wash the exterior and then turn it over to the painters.

Oh yeah, I forgot to mention that all the paint colors have to be approved by the Historic Review Board prior to our proceeding with paint. The property lies in Fredericksburg's Historic District and, as such, requires that we file an Application for Certificate of Appropriateness for anything that alters the exterior of the homes. Yee Ha! Are we having fun yet.?