I am happy to report that I have no sordid tales of murder or general mayhem visited on any IKEA employees or patrons but you may have heard some loud “wailing and gnashing of teeth” at the end of last week as my partner and I continued our quest to finish yet another duplex remodel.  The kitchens had been completed “gutted”  and one side of the duplex has (after enlisting the help of my partner’s 20-year old son) a brand new kitchen.

kitchen #1 almost complete in N Mississippi area duplex remodel

this goes where?

new duplex kitchen starts as a million puzzle pieces

So, after visiting IKEA and ordering our 2nd kitchen (this should be easy right???  We’ve already completed one?).  We quickly have our helper work his magic and somehow unravel the amazing number of parts and once again construct cabinets out of the rubble.  Anyway, as the myriad of tiny parts became recognizable shapes, we realized that for some reason this particular configuration did not fit the 2nd kitchen.  HELP!!!

It’s these type set-backs that “try mens’/womens’ souls”.  But, what are you going to do?  On our last summer’s duplex remodel, it was a “tagging” that set us back.  So, we proceeded to deconstruct the kitchen, box it up and head back to IKEA.  I have to say the helpful kitchen designers were very patient and assured us they had no knowledge of anyone ever dying (or killing each other) while trying to put together an IKEA kitchen.  I do believe we will eventually have that 2nd kitchen….really, I do!  Our goal is to have the first unit ready to show by the end of this week (I believe I said that a week ago??).  Oh well, at least there’s progress!!! 

Okay, so they definitely have the cutest kitchens at reasonable prices at IKEA.  However, I had no idea what a kitchen might look like in boxes.  I met with a great designer at IKEA and she helped me design and decide what elements to order.  My partner picked up the MULTIPLE boxes and brought them to the duplex and I/we experienced a “little moment of Hell”.  You know, that Christmas Eve after dinner and wine and the children have gone to bed?  And, you get out those boxes to put together “Santa’s gifts”???  Yeah, it was just like that!!  Luckily, my partner has an available 20-year old son who rode in with a red cape and “saved the day”.  Somehow he was able to walk into the duplex and look at all those incredible number of pieces and make sense out of the “fray”.  It’s a jig-saw puzzle!  This goes with this…like that, etc!!  It’s something you see…or you don’t.  However, from that disarray it is actually starting to look like a kitchen! 

Pieces of a "jigsaw puzzle", the kitchen is pieces "before"

new tub surround in bath

the kitchen is now almost complete!

The bathroom has a new, sparkling surround over the original cast-iron tub and just needs a new vanity and toilet and a splash of paint.  We are hoping to start advertising for renters by the end of the week!

Remodeling tests the strength of your resolve.  I feel like it’s very much a step-by-step process combining a flexible plan, lot of resiliency and a bit of faith in your vision.  You are watching the rose unfold, the painting evolve, the present unwrap…okay, I’m a little melodramatic sometimes.  But, it is my “baby” and I really, really care about the progress.  Again, I have a philosophy that if you love your property, your tenants will care more about it!  I’m enchanted by this North Mississippi neighborhood and I appreciate the vintage and “feel” of this piece of real estate.  I’ve already had multiple calls wanting more information about renting simply from people “cruising the ‘hood”.  The refinished hardwoods look great, authentic and aged, but really good.  Thanks to “All About Wood Floors”/503-309-4036 (they finished the floors on the Vancouver duplex last summer also). 

subtle, updated colors replace former "hot pink" paint

just in case you forgot the former awful bright pink

black & white "art deco" look in the kitchen w/soft yellow walls

new tub surround, we were able to save the window

New insulation, bathtub refinishing and kitchen next week.  Stay tuned….

"OOPS" Paint Gets Removed at the duplex renovation!

 And, so the work begins on the new duplex/investment property near the North Mississippi neighborhood in Portland Oregon.  It’s a great 1926 vintage side-by-side duplex and it needs some cosmetic updating!!  The new neighborhood is well-established (with one family owning 4 homes on the block) and that neighbor knows all the stories of the ‘hood (as she grew up on the block).  She calls the atrocious “mauve” paint job, which adorned the otherwise beautiful, original built-ins: “oops paint”.  This “oops paint” is what you get when there’s a particularly good deal on someone else’s paint and find out why it was considered a mistake! 

The same solution, Klean-Strip, was applied to remove the paint as was used on the duplex remodel at the North Williams Corridor last year to remove the awful adhesive that held the vinyl tiles and it appears to be working!!

There have been bids, bids, bids and decisions, decisions, decisions!  So far, there have been bids for insulation (as the house has very little), a plumbing company bid for separate water meters, a flooring company bid to refinish the hardwood floors.  I’ve spent two days at Habitat for Humanity, Lowe’s and IKEA choosing kitchen cabinets and flooring plus paint.  But, I’m starting to get a vision of “all that it can be”.

Tearing up the damaged vinyl flooring

The vinyl flooring was a mess and already peeling, so it was fairly easy to remove.  I’m envisioning a “black and white” kitchen that will be simple with clean lines and not fight with the “vintage”.  IKEA has a great deal on kitchen cabinets and new appliances (that were priced close to the “used” prices I paid on the North Williams corridor duplex appliances!!).  And, you can design your own rooms online!

The new fence construction will begin tomorrow and Pedro Naranjo will again perform the honors.  If you need a good handyman or help with small construction, cleaning or landscape projects, give Pedro a call at 503-443-8232 (although, he’ll be busy for about a week)  . Happy 4rth of July!!!

♥ I love real estate (need I say more?). But, I don’t just love owning and “stamping” a home of my own with my personal tastes and decor (although, that’s a great place to start)…I love real estate because it’s a tangible investment. You can see it, touch it, drive by it and, unlike impersonal stocks, bonds and mutual funds…you can love it! Now don’t get me wrong, a well-rounded financial portfolio has all of the above. I just “LOVE” my real estate!!  I live in a condo because I work a lot and it’s a life-style choice to not spend what free time I have “edging my lawn”.  However, today I spent four back-breaking hours weeding and primping my investment duplex (I forgot how physically taxing gardening can be and how rewarding. I was grateful for the 2 1/2 days of weight classes that I make a part of my weekly work-outs)!!  I did this out of love for my real estate.  I am not interested AT ALL in being anything close to a “slum landlord”.  I take incredible pride in the remodel and upkeep of this property and want it to be “the best it can be”!! Some of my renovation experiences  are shared from August ‘09, with the successes and challenges .  There were also some great remodeling resources and some thoughts on patience!

So, I’m looking fast and furious for my next “big thing”.  I am interested in building wealth, planning for my retirement and generating income.  A true investment works like this for me:  you buy a house, duplex, multi-plex or condo and you rent it out.  You make a profit on the rental fees, as well as the natural appreciation of the property over time.  “Time” is the operative word here.  You buy and hold.  The days of buying and flipping are over (or, at least, harder to justify when running the numbers).  I have spoken with multiple people with various “formulas” for how they make this work.  I, personally, need to see a positive cash flow (tho’ I don’t have a set amount that has to be) in a transitioning area (location, location, location) that I feel has potential for growth and development.  And, we haven’t even started discussing the tax implications of the write-offs (that is something to discuss with a knowledgeable CPA or financial planner).  I have a “Investment Analyzer CD” that I would love to share with anyone interested ( just write or call) developed by Hector Ariceaga of the First American Title Company.  It’s an excellent resource for determining return on investment (with and without appreciation), capitalization rates,  gross rent multipliers, more (however you like to “run the numbers”) and it explains the concepts well.

Buying investment real estate for the long-term takes commitment.  A long-term time horizon with regard to any investment will get you closer to the average return rate on that particular investment.  In other words, the investment becomes less volatile over long periods of time.  You’re less likely to miss out by selling during a flukish downswing in the housing market, but you’re also less likely to double your money in a year.

Also, as you hold and rent out a property for a longer period, the portion of your profits that come from rental fees will increase.  You’ll have regular tenants and your renters will net you a substantial income over a long period regardless of any short-term changes in the housing market.

So, why invest now?  Prices in the Portland Oregon real estate market are as low as I’ve seen them in years.  Interest rates are at historic lows (and are bound to go up…see my article on the difference interest rates make).  The current economic conditions make any remodeling or renovations more affordable.  AND, I love real estate!  ♥

Here are some sights from an earlier summer N. Mississippi Street Fair:

and music and fun happening at the Lompoc/5th Quadrant and Pix Patisserie on N. Williams and N. Failing:

I love the energy of this area!  It’s been developing for awhile and it’s young and hip and full of life and hope! The location is so great, only moments from NE Broadway, N Mississippi and right on the bike lane to downtown (on the corner of NE Failing where the bike/pedestrian bridge crosses from N. Portland).  Also, easy access at the Fremont on-ramp for motoring commutes on I-5 or I-405!!  I love real estate!!  .  It’s an investment you can touch, feel, get your hands dirty, drive by and enjoy!

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!

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!!!