Atlanta area rehab project

Real Estate Deal Analysis & Advice
10yFollow

Atlanta area rehab project

Manesh Hardeo
Investor · Houston, TX · Member since 2008 · 167 posts · 44 votes

Hello all,

So, here is another deal that we picked up.  It was sinking pretty bad in the middle of the house and we couldn't sell it on the wholesale side, so we opted to purchase it ourselves and see how this would workout.

Located on Vesta Ave, Historic College Park 
Purchase Price:  $75,900
Rehab:  Estimated $35k
Estimated ARV: $150k preliminarily, but subject-to appraisal came in at $167k. If this was 3 streets over it would probably be closer to $200k!

We closed on December 10th and started the rehab about a month later. 

Here are some before photos:

So, they've started the rehab.  We've had a structural engineer say the foundation is sound and shouldn't be moved and my contractor isn't very good.  So, I may be firing the guy.

To date, we've put in new woods, leveled the floors using the self leveling agent, put a new roof, new furnace, redid the master bath, gutted the kitchen, opened up a bar and extended the opening between the dining and living.  I'll get updated pictures soon.  

My biggest concern is how to make the ceiling look straight...the very first thing you see when you look up is a crooked piece of crown molding.  The door frames and everywhere else is squared.  So, obviously someone came in here rehabbed it at some point, and then ran out of money or got foreclosed on...not really sure.

We have some challenges ahead for sure. We'll see how this next week goes.

Enjoy,

0Reply
56 views

Most Popular Reply

Richard Balsam
Investor · Alpharetta, GA · Member since 2015 · 242 posts · 185 votes
10y

From what I can see - there can be an easy "fix" for the eye  (Just not a true fix in the ceiling). See if this makes sense:

I assume you will be adding crown molding? You might need to. Here is my suggestions if you do: First, I would suggest  taking a straight 1x4 or other straight piece of wood and draw a straight line (in pencil)  from the right side corner to the left side ( must be straight !). Use this straight line to calculate three measurements: right side to ceiling ( should be 0"), middle to ceiling and left side to ceiling. Use these measurements with the crown molding for the wall - but you will want to remove these measurements from the top of the crown molding, downward toward the bottom of the molding ( I assume 3-4-5 inch molding?). The trick is to make the bottom match up with the other moldings in the room. Right now-the eye catches the flaw. With the strange shaped crown you will cut ( to match the angle of the slope), once installed and caulked - the eye will see the bottom of the crown molding line up with the rest of the room.

Another method to do this: hold the crown up against the wall, with the right side flush with the ceiling and straight across to the left wall ( make sure the right side bottom is in line with the molding from the wall to its immediate right). Use a compass (with a pencil in it) to transcribe the angle onto the crown molding - and cut along the line. Use the point of the compass against the ceiling and wall intersection and the pencil will draw the proper angle. Adjust the pencil to the left side large "gap" and keep the compass exactly at that angle the entire way across the crown. The left mark should barely be visible- using all of the crown width and the right side will have a lot to remove. When you slide it to the ceiling- it should fit like a glove

Don't use too intricate a design for the molding - it will be difficult to cut along the line with all different types of routered angles! I hope this helps!

2Reply
See this reply in the discussion

14 Replies

Jump to latestLatest
  • Richard Balsam
    Investor · Alpharetta, GA · Member since 2015 · 242 posts · 185 votes
    10y

    Could you provide a picture of the crooked ceiling with crown molding? It may be a simple fix- or need some surgery to fix behind the drywall.

    0Reply
  • Manesh Hardeo
    OP
    Investor · Houston, TX · Member since 2008 · 167 posts · 44 votes
    10y

    @Richard Balsam I cant figure out how to get this picture right side up, but you can see how the line on the ceiling from the fireplace to the center wall slopes downward a couple inches.  Any ideas would be greatly appreciated! The contractor is going up in the roof to see if we can trey the ceiling somehow.  

    1Reply
  • Richard Balsam
    Investor · Alpharetta, GA · Member since 2015 · 242 posts · 185 votes
    10y

    From what I can see - there can be an easy "fix" for the eye  (Just not a true fix in the ceiling). See if this makes sense:

    I assume you will be adding crown molding? You might need to. Here is my suggestions if you do: First, I would suggest  taking a straight 1x4 or other straight piece of wood and draw a straight line (in pencil)  from the right side corner to the left side ( must be straight !). Use this straight line to calculate three measurements: right side to ceiling ( should be 0"), middle to ceiling and left side to ceiling. Use these measurements with the crown molding for the wall - but you will want to remove these measurements from the top of the crown molding, downward toward the bottom of the molding ( I assume 3-4-5 inch molding?). The trick is to make the bottom match up with the other moldings in the room. Right now-the eye catches the flaw. With the strange shaped crown you will cut ( to match the angle of the slope), once installed and caulked - the eye will see the bottom of the crown molding line up with the rest of the room.

    Another method to do this: hold the crown up against the wall, with the right side flush with the ceiling and straight across to the left wall ( make sure the right side bottom is in line with the molding from the wall to its immediate right). Use a compass (with a pencil in it) to transcribe the angle onto the crown molding - and cut along the line. Use the point of the compass against the ceiling and wall intersection and the pencil will draw the proper angle. Adjust the pencil to the left side large "gap" and keep the compass exactly at that angle the entire way across the crown. The left mark should barely be visible- using all of the crown width and the right side will have a lot to remove. When you slide it to the ceiling- it should fit like a glove

    Don't use too intricate a design for the molding - it will be difficult to cut along the line with all different types of routered angles! I hope this helps!

    2Reply
  • Manesh Hardeo
    OP
    Investor · Houston, TX · Member since 2008 · 167 posts · 44 votes
    10y

    Yes, that makes sense Richard.  Thanks so much!  I'll shoot this idea over to our contractor.

    0Reply
  • Michaela G.
    Investor · Atlanta, GA · Member since 2013 · 3k+ posts · 3k+ votes
    10y

    Make a 'triple crown' in that room. You can do it by using pieces of baseboard along the wall and on the ceiling. The crown would then be nailed on top. Make sure that the baseboard on the wall is parallel with the door frame. 

    So, while you'll then end up with a narrower piece of crown on one side of the wall, you could even even that out by making the ceiling baseboard a little larger at that spot to compensate for it. 

    Triple crown is much prettier than single crown and cheaper than a trey ceiling

    0Reply
  • Michaela G.
    Investor · Atlanta, GA · Member since 2013 · 3k+ posts · 3k+ votes
    10y

    And if you did the triple crown, use a color on the wall (don't do white or off white) and do your trim bright white. That contrast is what will catch people's eye. Then you can do the ceiling off-white and there'll be contrast between ceiling and trim, but the eye will be more drawn to the contrast between wall color and trim

    0Reply
  • Manesh Hardeo
    OP
    Investor · Houston, TX · Member since 2008 · 167 posts · 44 votes
    10y

    Good idea Michaela.

    0Reply
  • Michaela G.
    Investor · Atlanta, GA · Member since 2013 · 3k+ posts · 3k+ votes
    10y

    I'm used to dealing with Victorians and lots of settling and basically improvising a lot ;-)

    1Reply
  • Kyle H.
    Investor · Bryson City, NC · Member since 2013 · 162 posts · 122 votes
    10y

    @Manesh Hardeo

    Nice project!  We have done a bunch of structural rehab projects and I'm just curious about these projects in general.  Was the floor issue due to point load issues and did it also affect your roof framing?  Thanks.  

    0Reply
  • Manesh Hardeo
    OP
    Investor · Houston, TX · Member since 2008 · 167 posts · 44 votes
    10y

    @Kyle H.It was due to a point load and it did affect the framing.  When we redid the roof we had to redo a few of the trusses.  

    I ended up firing the contractor on Thursday.  Before our meeting I had a premonition to add up his line items.  On 2 of his bids he sent me one was inflated by $7500 and the other $5800!!  Wow -- considering I'm in a spot to give him a lot more business that was a very stupid move!  So, I have a few more bids getting done.  It's not a whole lot left, so we'll see if we can get it done within the next 30 days including the time to find a new contractor.  

    If you guys have any Atlanta recommendations I'll be happy to speak with them.

    0Reply
  • Robert Mitchell
    Contractor · Atlanta, GA · Member since 2014 · 130 posts · 25 votes
    10y

    Manesh,

    Stop wasting your time and money with bad contractors and give us a call or text.

    Thanks
    Robert

    0Reply
  • Manesh Hardeo
    OP
    Investor · Houston, TX · Member since 2008 · 167 posts · 44 votes
    10y

    So, we actually have this home under contract and @Robert Mitchell finished it up after dealing with a horrible contractor and losing $25k.  Thanks Robert and we're hoping it closes on time!

    Here's the finished product!  Sorry it took so long!

    http://www.trulia.com/property/1050942140-1912-Vesta-Ave-College-Park-GA-30337

    0Reply
  • Manesh Hardeo
    OP
    Investor · Houston, TX · Member since 2008 · 167 posts · 44 votes
    10y

    This property finally closed on Friday. Here's a prelim summary versus what actually happened.

    Initial Estimates provided by Networth Realty:

    ARV: $150k
    Rehab:  $35k
    Price:  $75.9k

    Sub-to lender appraisal came in at $167k before I closed.

    What actually happened:

    Sold for:  $174k in 42 days
    Listed for: $199.9k  
    Rehab:  $52k (got screwed by a new contractor I was trying to vet for our investors)

    So, overall even with our hardships we still did fine.

    Happy investing!

    0Reply
  • Jeff Bridges
    Investor · Hyattsville, MD · Member since 2012 · 822 posts · 441 votes
    10y

    So you got $32.18k in profit after selling costs? How did you split that with your investors out of curiosity? What profits did you personally take out of the deal if you don't mind sharing?

    How did the contractor screw you out of an additional 17k? Was this the one you hired after you fired another in the beginning or did you use the original guy that your inspector said was bad news? Was there scope creep on the original SOW? Did you have a super detailed written scope of work that you created prior to starting the project? If the project expectations were clear, how were they able to charge you more money? It might help others looking to learn from your mistakes. I try to make my scope of work as detailed as possible with type of materials and sub-projects so we are 100% clear on what needs to be included in the bid, so neither of us forget about a big project item and have to add costs for that down the line.

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free