Adelaide Renovation - Converting GP / Surgery

if I don't have to work and idling I will consider but still a fair way from my desired destination. You're going to have heaps of fun!

 

Interesting property - what do you think it will rent for post renovation?

Being previously commercial - is the zoning residential or mixed use?

 

@Corey Batt I think somewhere around 330-360 pw. Thoughts @D.T. ?

Land is zoned residential character.

 

Interesting. I'd pay a premium for a medically zoned house. Did you investigate that avenue? Set it up and lease it to a young specialist needing rooms?

 

Trying to work it out, is this strategy adding value accessing equity? moving on, are there comparables of similar properties, I ask cos this property not the norm

expected yield 10%? am I right... if so then pretty good

 

@Bran I tried to look into that option, very difficult to find commercial comparables. Not sure what the demand is for a small gp practice in the area.

The other consideration is LVR restriction for commercial loan. Not sure if I can extract as much equity as resi?

@MTR Yes, the goal is to extract equity and go again. I also want to end up with close to neutral cashflow post reno.

Exact comparables? I don't think I ever seen a property like this anywhere, let alone in the local area.

There was a neighbouring property I linked in the first page that someone bought for 290 last year. Absolute bargain. Post reno it sold for 428 a couple of months ago. But that's a better property overall.

Post-reno I think yield will only be around 4-4.5%

Risks are:
- Reno cost goes over budget and we overcapitalise.
- Lack of comp pre/post reno hurts final valuation, and we couldn't extract any equity
- Council rejects change of land use application. We'll need to revalue and lease it out as medical.

 

Good buy price, but I too wonder if this would be better revamped as office space (not medical). Far less work, generally a much better yield, and you push all the outgoings to the tenants. Given its adjacent to other commercial, change of use to general office shouldnt be a problem.

 

I think its great you don't ignore the risk, amazing how investors would not even think how important comparable sales are, or lack of?

 

Quick update for day 1 & 2 post settlement.

• Pressure cleaned all exterior surfaces: walls, driveway, footpath, shed.
• Cleaned windows inside and out
• Cleaned the roof. Fixed a couple of loose caps. Cleaned all gutters, there were heaps of leaf litter.
• Ripped out carpets, doors and cabinets from 1 room. Found nice timber flooring underneath, not sure what type of wood, been told it might be tassie oak.
• Mowed the lawn/weeds
• Painted all exterior eaves / soffits. Partially complete. Second coat and finishing touches still needs to be done.
• Put an order for kitchen appliances: Cooktop, Rangehood and Oven.
• Had one builder inspect and view to provide his quote.

 

Well done. You've hit the ground running. Nice timber in that floor.

 

You knocked over a heap of work on the weekend, must have had some red bull?

I'll get the builder out to quote on renovation later this week.

 

Thanks @D.T.

After two straight days of hard work - I can't feel my arms anymore. It's over to you now to coordinate our builders and trades.

 

Quick updates. Builder quoting has been done and I've handed the keys over to the successfully chosen one.

They're going to do majority of the job. There's a couple of bits they're not - those trades need to be scheduled in at certain mile stones.

 

Any plans to extend? Looks like a big block, or is there a long term plan in place?

That carport looks like it's under the main roof, could you close it in for extra room?

Looks like a fun job, would love to fly over and get away from the kids. ... i mean get my hands dirty and help

 

At present the block is too small to subdivide. Given proximity to the railway station, who knows, future rezoning might be favourable. They way the current dwelling sits, we might be able to do a retain and build.

Converting the carport could be an option, but getting the internal layout to work with the extra bedroom might be difficult. It's all bedrooms along that side at the moment.

 

Progress payment 1 is due to the builder as the demo stage is done so I went to go check how it was going.

Corner basins have been removed from all the surgery rooms:


Walls removed to create new kitchen and bathroom spaces :


Doors being created and removed:

Verandah wall cut out to create a gate + add space and light:

Kitchen has been delivered, just sitting in front room for now til ready to be installed:

Lots of stuff removed:

Carpet and toilet thrown out:

Trees out the front knocked down to reveal the façade:


Tomorrow I'm showing a floor guy through to see if he can sand & polish the floorboards for @ramssss

 

Floor guy came through late last week and will quote on sanding and polishing the floorboards that are hiding underneath the carpet. This will need to be done last as dont want it walked on once its done.

Over the weekend some youths managed to get around the back and steal some reno equipment / supplies. Police were called by neighbours and they were apprehended and stuff stored at the police station for me to collect.

 

ripping neighbours! that's a great outcome. worth a bottle of wine or something to say thanks.

 

Quick update.

Just spent another couple of days on site to do what I can to push things along.

Progress to date:

• Plasterboards are up and ceiling patched
• Painting in progress
• Powerpoint and switches repositioned.
• New kitchen is in position.
• Purchased new roller blinds
• New plants outside

 

Still not sure what to do with the facade. Keen to preserve the modernist mid-century feel. When done right it can look quite stunning.


Thinking of painting these breeze block white.