Remodeling 101: It Always Takes Longer Than You Anticipate!

If you’ve been catching my notes starting the first week of August with updates on my recent North Portland duplex investment property renovation, then you know we’ve had a couple of minor set-backs.  There was someone who REALLY wanted us to repaint the exterior ( http://fabulousportland.com/2009/08/23/tagyoure-it-oh-well-it-needed-painting-anyway/ )

and the wood floors took a little longer than expected (but the final buffing and final coating happen tomorrow).  They look very good considering the yukky glue that held the vinyl floor tiles onto the hardwoods for all those years! 

Now the painting has begun (I love, love, love the Devine paint color “Peanut” mixed by Miller Paint):

and you can see the beginnings of a bit of front elevation landscaping by Ealie McClay and friend (more to follow on her new landscape architecture company).

Also, Moises Beltran continues the great work on entry tile and linoleum for the baths:

The tile comes from the “Restore: Habitat for Humanity” (more at: http://fabulousportland.com/2009/08/26/great-findgood-for-the-pocketbook-good-for-the-earth/ ) and I found a great deal on linoleum at “Don Frank Floor Covering” (right next to the Portland “Restore” location).  You have to ask for the warehouse stock.  But, I love the look and the cost was $7 sq/yd and they were VERY helpful.  We were hoping to be ready to show potential renters by 09/01….well, that ain’t gonna happen!

Great Find…Good for the Pocketbook, Good for the Earth!

As I continue to chronicle my recent duplex/investment property remodel (see various blogs from the blogroll on the right side of the page starting the first of August ‘09), I love sharing some great finds!  This investment property is located between the hip North Mississippi neighborhood and the transitioning North Williams corridor in Portland, Oregon. My goal is to have the property look as nice as possible (in hopes of attracting great renters who will appreciate the work) without over-spending the budget.  I “guesstimated” around $20k in upgrades as I was initially “running the numbers” on the purchase.  So, we’ll see how close it comes!  There is always the “unexpected” on such a project!

One great find was the “Restore for Habitat for Humanity”!  There’s one in Portland located at 66 SE Morrison and one across the river at 5000 E 4rth Plain in Vancouver.  Many local companies and contractors AND individuals donate leftover tile, carpeting, wood trim, cabinet hardware, lighting, appliances, sinks, toilets, paint and more.  It keeps these items out of our landfills AND allows budget-conscious “scroungers” like myself to search for discounted remnants for smaller jobs.  The tile in the duplex kitchen in the upper right photo was found at the Restore in Vancouver!  And, thanks to Moses Beltran for the excellent tile work!!!

Just What We Need in a Challenged Portland Housing Market…MORE Challenges!

I’m being just a touch facetious with my statement that we need MORE challenges in our already challenged local Portland, Oregon housing market.  After housing prices taking a beating, our retirement accounts depleted and our consumer confidence in the toilet we could use a little less ”problem” and a little more “solution”.  However, the banking industry in an effort to “pendulum” back from the days of giving away money for mortgages with nary a care in the world, has enlisted some very strict new lending regulations to complicate the process.  Here’s a synopsis:

Highlights of new Regulation Z (Mortage Disclosure Law – MDIA) changes:

1)   Initial Disclosures  -  must be sent to borrower within 3 business days of loan application.  Loan Application is defined two ways.  For refinances, it is from the date of actual application and credit-pull.  For purchases, it is the later date of either the initial application, or when an actual Sales Contract is signed by all parties and submitted to the lender.

2)   Closing Date  -  earliest it can happen (signing) is 7 business days from the time the Initial Disclosures are sent.

3)   Appraisal  -  Cannot be ordered until 3 business days AFTER the Initial Disclosures are snail-mailed to the borrower.  There is not this wait time for my company … read on for how I can expedite this timeline and order the appraisal immediately.

4)   Fees Collected  -  Credit report fee may be collected immediately at application, but appraisal fee cannot be collected until 3 business days AFTER the Initial Disclosures are mailed to the borrower.  Again, I don’t have to wait for this either … see below.

5)   Appraisal Review  -  Borrower must receive a copy of the Appraisal a minimum of 3 business days PRIOR to signing final docs at closing.

6)   APR Changes  -  if the APR changes (up or down) by at least 0.125% during the process, there must be a Re-Disclosure of the Good Faith Estimate and Truth-in-Lending statements.  If a Re-Disclosure is required, the borrower must have 3 business days to review before final loan documents can be signed. 

7)   Mail time  -  if any of the above are snail-mailed to the client, the old-fashioned way, then add 3 business days per document that is mailed.  After 3 business days, it is considered received by the borrower and the review timeline starts.  This is a key point that will affect your timing, depending on the lender used.

I am definitely NOT suggesting that the mortgage industry did not need some serious revision.  But, I’m just not sure that making acquiring the money for houses more difficult and lengthy to obtain for well-qualified and serious investors is the answer.

Tag….you’re “it”!! Oh Well, it Needed Painting Anyway!

This just in…..bored “taggers” hit duplex under remodel!  (More on my recent Portland Oregon investment property acquisition and duplex remodel…if you need to catch up: http://fabulousportland.com/2009/08/10/soi-took-my-own-adviceit-is-a-good-time-to-buy/ or http://fabulousportland.com/2009/08/16/let-the-work-begin/ or http://fabulousportland.com/2009/08/21/more-on-the-continuing-saga-of-the-duplex-remodel/ ).  Oh well, I was thinking that the siding looked a little tired anyway.  We had already erected scaffolding to clean the front of the property but now it will simply be painted to erase the graffiti!  For more on the city of Portland’s graffiti abatement program and to report graffiti property vandalism, go to:  http://www.portlandonline.com/oni/index.cfm?c=32420 or for ideas on removing graffiti, go to http://bit.ly/removegraffiti .  The really good news is that we’ve now met most of our neighbors (who came out to sympathize with our unexpected selection of exterior decor)!  So, something good comes out of everything!  Tile work starts today….

More on the Continuing Saga of the Duplex Remodel!

Ok, remember the saga of my new investment property remodel?  Located in the “oh-so-bike-friendly” city of Portland, Oregon (right on a main biking corridor on N Vancouver Avenue…might I add!).  Anyway, I did recently purchase a duplex and I’ve been updating anyone that cares on the progress.  I’m excited about the area where it resides (between the newly evolving N. Williams Corridor with the Lompoc and Pix and the existing and continually evolving ‘hood of N. Mississippi).  Just wanted to show you how the wood floors are transforming!  You may recall we had ugly vinyl tiles seriously glued to the original hardwood floors.  You can see the dark, tar-like glue in the first photo, the glue-free sanded version in the 2nd photo and the first finish coat in photo #3 (see http://fabulousportland.com/2009/08/16/let-the-work-begin/ if you want more details on removing that gummy vinyl glue).

Also, what an amazing difference a little paint thrown around can make!!!  The original facade in photos #1 below and the new color scheme in the 2nd picture.  Shutters will be next on the upper windows in black (to compliment the doors).  It’s a “work-in-progress”!!  It took awhile to get the greenish color that I want (but, finally found it through Kaleidoscope at SE 9th & Salmon…it’s a Benjamin Moore color…and they were VERY helpful with choosing and mixing the correct paint).

Oh yes, and the backyard now has a fence (thanks to Pedro & Beatrice Naranjo)!

Then there was the dilemma with the stairs!  The vinyl stair treads that were glued to the original wooden stairs treads did not want to come off without a fight, so the stair risers and treads ultimately had to be replaced! My duplex partner (with the help of a friend who talked him through the process long-distance) placed new treads and risers.

Investment properties in Portland have managed to “hold their own” in an otherwise challenged real estate market, even though the rental market has also had to adjust prices to compensate for the extra rental inventory.  Portland property owners who feel they cannot garner what they need to sell their home have added to the number of available rental properties, putting downward pressure on rents!

Stay tuned…more to follow!!

An Eerie Lull in the Housing Market….but, Why Do Some Houses Get Multiple Offers and Others None?

August always brings an “end of summer” lull in the Portland real estate market and perhaps we’re just a bit paranoid these days, but it seemed to me our vacation slow-down started earlier in August than usual.  I feel less interest circling my listings despite recent RMLS stats that show a slight increase in lockbox activity.

Which brings me to the thoughts on why some listings sell and some don’t!  Several elements are paramount:

1) Location, of course! Location has always had impact and continues to do so.  But, you can’t do anything about your current location (short of moving your house).  So, you must work with what you can change.

2) Pricing is Paramount!  You have to be “ahead” of the market is pricing (and, yes, you must compete with short-sales and foreclosures…no one said life was going to be fair)!  If you are “chasing the market down” you will end up losing money as the listing gets “tired” and “stale”.  If you really want to sell, price it like you really want to sell!

3) Exposure!  Over 90% of all real estate searches start online.  Where is yours?  Are the photos impressive and alluring?  If your listing shows well on the internet, it will entice viewers to go from “virtual showings” to “in-person showings”

4) Staging and Condition!  Unless you are attempting to sell for less than is owed on the property, attractive staging and good conditions must exist.  If you are selling short, you don’t want to put any more time, effort or money into the property but, otherwise, you must have everything in order.  Smells must be eliminated, pets contained, paint re-touched or re-done, workwork spruced, carpet and wood floors evaluated….remember the competition is stiff out there and you have to be on your “A-Game”!!

Let the Work Begin…. :-)

Remember how I “took my own advice” and purchased some real estate???  (See:  http://fabulousportland.com/2009/08/10/soi-took-my-own-adviceit-is-a-good-time-to-buy/Well ), now my partner and I are deep into the “world of remodeling”!  Portland Oregon investment properties have been holding their own in a “challenged” housing market.  Decisions, decisions, decisions plus the unknown elements that will surface in any remodeling project are “in yo’ face”! Ugly vinyl tiles had been glued over hardwood floors on both levels of our duplex.  What an amazing project to get that glue off the floors.  In the photo you can see the sanded floors adjacent to the floors with MOST of the glue removed by a strong solvent!!  With 4 people attempting to release the glue, it set us back several days on the sanding (you just can’t find anyone who will or can sand up that glue)!  We did find two products:  a Jasco product and this Klean-Strip (less expensive) that managed to dislodge the black-gluey mess.

So, now another little “glitch”.  There were institutional ribbed vinyl stairtreads on the stairways in both units (again, glued over hardwood).  However, upon taking off the vinyl, the wooden treads beneath were damaged.  Hummmm!  So, now Lowe’s comes to the rescue with inexpensive pine treads (that we will stain to match the refinished hardwood flooring)…but, tearing up the damaged original wooden treads has also broken most of the original wooden risers.  Ok, again we will “make-do” with a less-expensive MDF product and paint the risers.  It will still look very nice (I hope).  I was involved several years ago with the remodel of a vacation property in Bend, so I should not be surprised….but, remodeling is like Christmas every day….you never know what you’re going to get!!!

Portland Area Housing Inventory Down for 6th Straight Month

Local Portland Oregon housing inventory was down to 7.3 months for the month of July 2009!!!  This is the 6th consecutive month of lower inventory of homes for sale, down from 10 months in July 2008 and down from 19.2 months in January 2009!!!  This coupled with the national lower unemployment figures and other recent positive economic indicators leads me to conclude we could be near the “bottom” and nearing the end of our recession.  That does not mean that we don’t have some more “repair work” to do.  I do believe it’s going to take some slow, steady re-building to fully rejuvenate our real estate market.  But, every little positive piece of the puzzle is welcome! To see full market statistics, please visit:  http://bit.ly/JulyMarketStats

So….I Took My Own Advice….it is a good time to buy!!!

I definitely took my own advice:  I just purchased a new investment property with a partner and we are undertaking the daunting task of renovating!  The new duplex (3 bedrooms/1.5 baths each side) is located between the existing, trendy and very “HOT” area of North Mississippi and the newly evolving North Williams Corridor (a block from the yummy “PIX” sweet spot and the 5th Quadrant/Lompoc).  OKAY…now it looks a bit “institutional” and (possibly) boring!  But, the area is transforming and our eyes may be bigger than our pocketbooks, but big plans are abounding!!  Thus far we have ripped up the ugly vinyl tiles to expose original hardwoods (on the main AND upper floors).  These floors will be refinished this week.  YIKES!  Taking up vinyl tiles is not a pretty job (as the glue used to secure those ugly little squares is hard to get off the wood).  So, now we’ve added a back fence.  I’ll buy new exterior & interior paint tomorrow.  We will replace kitchen sinks & add hardware, replace bath & kitchen flooring and add faucets, etc.  Simple details like new doorknobs, electrical outlet covers and other details will make an incredible difference.  More to follow, I’m sure!  Just know I’ve both sold another investment property and purchased a new one in our present marketplace (within the last month).  I’m not kidding when I say “I feel your pain” regarding what our market will bear on the sale of your property and I understand what it takes to get a loan for new property (ouch!  Way to make a girl sweat who has excellent credit AND a history of investment properties)!  You are not alone!

Higher Interest Rates to Come?

 Over the last 7 business days, the Bond Market (where Mortgage-Backed Securties are sold) has taken a significant drop.  Not quite as big as the drop that followed Memorial Day Weekend, but it seems to be heading in that direction.  As Mortgage-Backed securities (MBS)decline in pricing, rates tend to go up.  Around Memorial Day, the Federal government slowed down its purchases of MBS, which earlier in the year was artificially propping up the pricing and helping rates.  Plus, there started to be an over-supply of new debt being sold.  In simple terms, all these stimulus programs bring debt for the country.  That debt is sold on the Bond Market.  When there is more to sell that there are buyers, the basic supply-and-demand rules take effect.  Too much debt to sell equals lower price which means higher interest rates!  This may continue as the economy is showing signs of recovery.  Today’s jobless rates came in better than expected and some sectors are showing profit gains.  So, it’s a mixed bag of news, as our economy recovers we may experience the pain of higher interest rates for homes.

Next Page »