DOOR #1: THE RIDGEWOOD PROPERTY

A few months of strategy, research, networking and planning finally led to keys in hand for my first property just south of Seattle in the Tacoma neighborhood in late November. After taking the leap away from my corporate job and betting on myself, I knew the first property would inevitably bring on stress and learning. But it's never been about the short-term headaches or gains— those are only stepping stones to get closer to the long-term vision: becoming a savvy real estate investor that creates value through integrated design and revitalization of homes (and eventually a boutique hotel).

But, let's get to some of the details and progress— the good, the bad, and the funny! It's easy to get engulfed in the day-to-day of all our jobs (especially in a house-flip when every day equals money), but sharing the progress helps to take a moment and reflect on how things are going and what we're tackling next.

The Purchase Details: Purchase of a home can be the most stressful part for anyone, whether it's an investment property, a primary residence, or a rental— It's important to find the right one! I worked closely with an investor-friendly real estate agent (who flips properties herself) to help find the right deal, in the right neighborhood, at the right price.

The 1908 home is 1,596 SF including two stories, three bedrooms and one-and-a-half bath, situated on a 7,000 SF corner lot in Central Tacoma, WA— a small city only thirty minutes from Seattle. The home needed a full interior renovation with new insulation, flooring, kitchen, bathrooms, drywall, electrical wiring and plumbing, on top of repainting the exterior and removing the un-permitted enclosure around the front porch.

Purchase Price: $325,000

Renovation Budget: $110,000

Flip Duration: 5-6 months

After Repair Value: $535,500

The offer we made was accepted the same evening and inspection was completed the following day to ensure no major structural or roof issues were present (since all interiors, electrical and plumbing were a full-gut). With a hard money lender lined up and pre-approved, we closed in a short ten days. On Nov 29th, the keys were secured so we could design, demo and flip!

Design & Experience: The home's entry currently presents a shoddy enclosed front porch that will return to it's original nature, exposing the columns and opening up to the street. A fresh, new coat of exterior paint on the wood siding and trim that compliments it's dominant brown roof will return this home to it's craftsman-style origins.

The main floor plan will be reconfigured to become a modern craftsman-style space— connecting the communal areas towards the sunny, street-oriented edges of the home, while allowing bedrooms to retreat to the yard. The small, existing foyer that greets owners and guests will be eliminated to tie the living space more directly to the porch. The kitchen will be relocated to create an open concept kitchen-dining zone for more cohesive gathering. The relocated bedroom on the ground floor will have more privacy at the rear of the home and an adjacent full bathroom, while the back room of the home maintains some utilities and hosts the laundry. Check out the ground floor plans below and more details of the interior design to come in the next post!

Demolition Progress: As carpet and walls are removed, the history of the home is revealed— teal, red and peach paint colors layered over one another, teal shaggy carpet remnants, and abandoned old knob-and-tube wiring. Many homes of this age in the area were built with lath and plaster walls, so demolition is dusty, heavy and time consuming, but a task we've decided to mostly tackle ourselves with the help of a few Craig's list day laborers to save on some costs. The original interior trim-work of the home is solid, one-inch hardwood with ten-inch high baseboards, so where possible, it is being salvaged and refinished.

The interior facelift is about to begin— starting with new framing, followed by electrical and plumbing rough-ins. We will be excited to share more progress soon.

Lessons Learned, Month One:

• Build your network of trusted sub-contractors as quickly as possible and get multiple bids.

• Start a relationship with the city and inspectors early to get permits in and approved efficiently.

• When designing, understand comparable homes in the area to know what level of finishes and layouts are in demand from buyers.

• Use Craig's List to hire labor for demo— fast and cost effective!

• Always have a case of gatorade on-site and dogs to keep you company.

Til next post— we build on!

refern (aka rachel)