Tag : passive investing in Memphis

8 years, 1 month ago 1

The fire damaged house at 7775 Wolf Den is no longer a fire damaged house.  It’s completely put back together and the only way you would ever know there was a fire is by looking in the attic and seeing the roof decking painted white as part of the encapsulation process.  All final inspections have been passed and the house looks great.  We decided to add this property to our rental portfolio instead of selling it.  Not surprisingly, it rented very quickly and we have a tenant moving in a few days from now.  We did a lot of work to this house and it almost feels like new construction when you walk in.  Check out the final walk through video and let us know what you think.  If you want to see what it looked like before, I put the initial walk through video in here as well.

[youtube=http://www.youtube.com/watch?v=5kUwgiR4T-Y]

 

[youtube=http://www.youtube.com/watch?v=6kv3Ls-XVMc]

8 years, 3 months ago 0

We closed on the sale of another awesome renovation.  You know you’ve done a good job when you find a buyer after only five days on the market.  This was one of those houses you fall in love with during the renovation so we definitely wanted to find buyers who would really appreciate the house.  Luckily, we did and they were nice enough to do a testimonial video for us.  Check it out and then watch the video walkthrough and you’ll know exactly why they bought the house.

[youtube=http://www.youtube.com/watch?v=gM8Iu2hnyzU]

 

[youtube=http://www.youtube.com/watch?v=4YrLoz5XVwc]

8 years, 5 months ago 1

If you are a real estate investor, you may come across a fire damaged house.  What do you do?  Wether it’s a small fire or a large one, many investors will be scared off but if you know how to clean and repair the damage, you will have the courage to buy the property at a rock bottom price.

If you do buy a fire damaged house, your two main concerns will be replacing anything that was damaged and making sure there is no lingering smoke smell after you make your repairs.  I’ve documented the cleaning process with videos and pictures to inform you of the process for getting the house back into livable condition.

Check out these four videos to get an idea of the condition of the property prior to the start of smoke and soot cleaning:

Day 1

[youtube=http://www.youtube.com/watch?v=YdPn8kbfQWo]

After interviewing three fire damage cleaning crews, I chose a company called PuroClean, which I had previously used to clean mold on another rehab.  Day 1 was all about prep work.  They removed cabinets, removed all the sheetrock nails in the studs and tested different cleaning materials on different surfaces to determine the best cleaning strategy. 

To sum up the desired strategy for cleaning a fire damaged house: remove all the loose soot, ash and debris from every surface in the house, then encapsulate every square inch of the house with special paint to trap in the smoke smell.  The biggest problem is that smoke, like mold, can be anywhere.  It can penetrate every nook and cranny in the house and it can get behind walls and in the insulation.  That’s what makes the clean up process so difficult.

Living Room Picture

Master Bathroom Tub

We replaced the burnt wood with new on the left.  Pretty easy to tell what we replaced and what we kept.

Check out the smoke on the walls behind where the cabinets were in the kitchen.  This is why you have to take them down.  Otherwise, there is now way to clean and encapsulate it.

 

Day 2

[youtube=http://www.youtube.com/watch?v=gnOuRaX-Dvc]

The second day was really the first day of actual cleaning.  Some of the ceiling joists were scrubed down using a combination of special dry sponges and wire brushes.  The bathrooms cleaned up pretty well, especially the tubs and toilets.  Plastic was laid out over the attic floor in preperation for blasting the roof decking with sodium bicarbonate.  This process is almost like sandblasting or pressure washing.  It works really well on plywood like surfaces as well as surfaces that have a lot of nails you can’t remove, like roof decking.

We tried to save the cabinets but had to remove them.  The finish was blistered and the particle board was falling apart.

The master bath tub cleaned up very well.

Plastic laid down in attic in preperation of blasting the decking with sodium bicarbonate.

 

Day 3

[youtube=http://www.youtube.com/watch?v=7AKLAZHDjP4]

The third day showed major improvement.  Blasting the decking and wood with sodium bicarbonate really was an effective method to remove soot and ash but it sure is a messy job.  That stuff gets everywhere but the results speak for themselves.  They got most of the house done in one day.

A 50 pound bag of sodium bicarbonate

 

Day 4

[youtube=http://www.youtube.com/watch?v=4bIWoD333Sw]

The sodium bicarbonate blasting was finished on this day and then the clean up began.  As I said previously, that stuff gets everywhere and it has a sand like texture.  Anyone who has ever tracked sand into their house knows how difficult it can be to get it all cleaned up so I definitely felt sorry for the guys on this one.  The clean up took most of the day and went into Day 5.

The machine used to blast the sodium bicarbonate.

Here is a picture of the rafters and decking after being blasted with sodium bicarbonate.  Compare this picture to the one shown in Day 1.  Huge difference.

The plastic laid down on the attic floor was used to catch the sodium bicarbonate.  This made the clean up much easier.

 

Day 5

[youtube=http://www.youtube.com/watch?v=tyIp95NFS8o]

The last of the sodium bicarbonate was cleaned up and the encapsulation was begun.  Encapsulation is the process of spraying everything with odor blocking paint to trap or encapsulate the smoke smell. 

Upstairs bedroom after encapsulation.

One of the multiple products used for the encapsulation.

 

Day 6

[youtube=http://www.youtube.com/watch?v=F1Asah8d-PQ]

More encapsulation work was done today.  By the end of the day, the interior of the house looked like a “white palace”.

Compare the living room picture after clean up to the Day 1 picture.

The bathrooms cleaned up very well but now I don’t like the tile.  Just might change it out.

Kitchen after clean up.  Compare to Day 1 picture.

 

Day 7

[youtube=http://www.youtube.com/watch?v=rPb5Nk3VwWE]

The last day of the project was mostly a day for touch ups and final cleaning.  Windows were wiped down, trash was hauled off and extra materials were loaded up.  Now that its all finished, we can now put the place back together starting with HVAC work, rough plumbing and electrical.

Attic picture after encapsulation.

Another attic picture after encapsulation

 

Summary

Cleaning a fire damaged house doesn’t have to be scary or overwhelming.  The most important thing to remember is that once you go to the expense of putting the house back together, it cannot smell like smoke.  If there is any doubt that something won’t clean up, then replace it.  In fact, your local building code will dictate when burnt wood framing needs to be replaced.  Whatever you don’t replace, make sure it gets cleaned and encapsulated.  After that, it’s just a standard renovation.  Good luck!

Mark Anderson

Lucky A Properties

8 years, 5 months ago 0

Mark Anderson gives you an update on the progress being made on the exterior at the Holmes Circle house.  [youtube=http://www.youtube.com/watch?v=DdgrJfrDj08]

8 years, 6 months ago 0

Check out the video for a quick look at the progress we are making on 421 Holmes Circle.

[youtube=http://www.youtube.com/watch?v=nWxPnf-eW3k]

9 years, 6 months ago 0

Here is the latest on what’s happening at 4979 Sequoia.  Everything is starting to take shape.

[youtube=http://www.youtube.com/watch?v=IiV_7m00mAI]

9 years, 6 months ago 0
Posted in: News

Ten real estate articles of interest for the week of 3/15/10 – 3/21/10 with a focus on the interests of Memphis Real Estate Investors.

1.  Leaders say Google Fiber Network could transform Memphis:  How awesome would this be?  As a real estate investor, you would think this may lead to more jobs or maybe Memphis would be a more desirable place for businesses to locate here.

2.  Help for homeowners hurts credit score:  Housing counselors say it’s unfair that participating in a loan modification can hurt your credit score, but I think it is fair and logical that it would weaken your score.

3.  Memphis, most other metro areas are suffering through jobless recovery:  More statistics on what seems to be a jobless recovery as well as an interesting comparison to the 1981 recession.

4.  Study: Millionaires few in Tennessee:  No real surprise.  But it’s also a reason why we have very affordable housing here compared to other parts of the country AND why many millionaires in other states choose to invest in Memphis.

5.  Delta’s Cincinnati hub takes another hit, Memphis International well positioned for future growth:  Most of you already know how important the Memphis airport is to our local economy.  Delta  Airlines likes our airport too.

6.  Memphis 42nd of 43 on Green Cities Index:  Sad indeed, but surely there is a huge opportunity here for companies who can get “green”.  The only question is whether Memphians are ready?

7.  Study: Memphis ranks near the bottom for young adults:  Wow.  I didn’t think it was this bad.  On the flipside, this may help to explain why so many people in Memphis must rent instead of buy.  This, of course, creates opportunity for those looking to invest in cash flow rental properties in Memphis.

8.  Mortgage Rates Still Below 5 Percent:  Keep an eye on this as a key Fed program comes to an end on March 31st.

9.  Check this out:  According to projections from Money Magazine, Memphis is the only major city in Tennessee expected to see an increase in real estate values this year. 

10.  Property Transfers: March 21, 2010:  Real estate transfers of $100,000 or more as shown in the records of the Shelby County Register’s Office.

9 years, 7 months ago 0
Posted in: News

Ten real estate articles of interest for the week of 3/1/10 – 3/7/10 with a focus on the interests of Memphis Real Estate Investors.

1.  Foreclosure puts auctioneer John Roebuck on block – After auctioning so many properties over the years, the headquarters of Roebuck Auctions is scheduled for foreclosure sale.  Crazy times, huh?

2.  Tennessee unemployment rate was 10.7 percent in January – It’s unchanged from December but still higher than the national average of 9.7%.  Click here to see how the same statistics can sound a lot worse.

3.  Memphis foreclosure rate rose in January – Very short article with some interesting statistics.  There is no doubt more foreclosures are on the way.  The real question is what impact will it have on the market?  Have prices stabilized or will the foreclosures continue driving down prices?  For real estate investors, it certainly means we will continue to see opportunities in the near future.

4.  SurveyMemphis: Local optimism sees increase – With as tough a business climate as we are in, it is encouraging to see the increasing optimism of local Memphis business leaders.

5.  Ever wonder what the Stimulus Money is being used for in Memphis? – The Memphis Business Journal has compiled the answer.  Follow the link to see all the requests and awarded contracts.

6.  California investor buys Frayser apartment complex – For those of you who don’t know, Memphis is a very attractive rental real estate market for out-of-state buyers.

7.  The Adversity Index – How did we do?  You gotta check out this interactive map.  It seems Memphis, as well as the state of Tennessee is on the road to recovery, though half the country is still in recession.

8.  Memphis ranks high in corporate recruiting – Site Selection magazine listed Memphis as No. 9 for new or expanded corporate facilities.

9.  Memphis developer Rusty Hyneman, partner are ordered to pay bank $2M – This one is worth reading for the comments alone.  Ouch!

10.  Property Transfers – Real estate transfers of $100,000 or more as shown in the records of the Shelby County Register’s Office.

Our website: www.LuckyAProperties.com

9 years, 7 months ago 2
Posted in: News

Ten real estate articles of interest for the week of 2/22/10 – 2/28/10 with a focus on the interests of Memphis Real Estate Investors.

1.  Looney Ricks Kiss files for Chapter 11 – The famed Memphis architectural firm is trying to navigate through tough times.  They’ve had a hand in designing many Memphis landmarks.

2.  Looking Ahead: Wharton gives Rotarians glimpse of future – Most people dislike politics, especially local politics, but when the mayor speaks about future plans and projects, real estate investors should pay attention.

3.  Freddie Mac losses mount, warns of foreclosures – CEO Haldeman warns of a “potential large wave of foreclosures” still to come.  The article also talks of the desire for new legislation so this doesn’t occur again, but it sounds like 2011 is the earliest hope of it getting done.

4.  Commercial real estate raises red flags for bankers – Dire warnings from some corners of the financial industry are predicting a wave of small bank failures as more than $1 trillion of commercial real estate debt matures in the coming years.

5.  Memphis College of Art buys South Main building – A short round-up of commercial projects going on in Memphis.

6.  Commission to limit adult businesses – If this passes, it will be a sad day for a few of our readers.

7.  Memphis named No. 1 for real estate steals – Thats right.  According to U.S. News & World Report, Memphis was No. 1 on the list with a price-to-income ratio that’s below its 15-year average at just 1.17.

8.  Memphis ranks No. 351 in national wealth study – Nothing to be proud of here, but when you see article #7 above, you begin to realize why so many investors from around the world love to buy cash flow rental properties in Memphis, TN.

9.  Existing home sales drop – The numbers were down month-over-month but up year-over-year.  I tend to focus more on year-over-year.  On a month to month basis, there are too many silly variables that can affect the numbers, such as the amount of snow fall.  The impact of this tends to be mitigated when looking at longer term numbers.

10.  Property Transfers: 2/28/10 – Real estate transfers of $100,000 or more as shown in the records of the Shelby County Register’s Office.

Our website: www.luckyaproperties.com

9 years, 7 months ago 0

We started the rehab process on 4979 Sequoia today.  This will be a fantastic property in Memphis, TN for one lucky owner-occupant.  We marketed the property in as-is condition for a short period of time and had A Lot of interest, especially from first time homebuyers looking to take advantage of the $8,000 take credit.  The size of the rehab seemed to intimidate most potential buyers as the property does need a full makeover.  Below is one new video along with two older ones discussing the property.  This is a great time to buy a house in Memphis, but act fast because the tax credit is set to expire at the end of April…and because this will be an awesome place to call home!

[youtube=http://www.youtube.com/watch?v=UrzNQIt_XPQ] 

[youtube=http://www.youtube.com/watch?v=sZ812CiYqpI] 

[youtube=http://www.youtube.com/watch?v=cMN-r2IwGdM]