Kingston Renovation (Logan)

Discussion in 'Renovation & Home Improvement' started by Greyghost, 2nd Aug, 2017.

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  1. Greyghost

    Greyghost Well-Known Member

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    Hi everyone,
    So the renovation begins on one of my Kingston properties.

    I will post photos of the current state of the property at some point (when on my desktop PC).

    I bought this property with current tenants in place. Owner had neglected to stay on top of maintenance and to be honest the tenants were grubs. There were 7 or so adults living there as well as a couple of dogs.

    I bought the property understanding the condition of the property and it had always been the plan to hold it for a year or 2, raise rent and then evict the tenants.

    They have vacated as of last Sunday.

    After work last night we visited the property with baited breath anxious as to its condition.
    I was not shocked to be honest.
    It basically looks like a place 8 low socio economic adults have had free reign on for 8 years.

    We have already done a renovation on the Loganlea property, so search for that to see a similar Reno story.

    Key to this Reno is this:

    Do not overcapitalise...
    Purpose is to rent out again NOT sell. Many investors get the wrong and get the emotional attachment of what they would like in a property when renovating and blow out the budget.

    Clean and functional is the mantra, keeping in mind not to cheap out so that I'm spending money again in 18 months.

    Intended Reno hit list:
    . Remove fake wood panel sheets on downstairs rooms and plaster them. Roof rafters are already varnished which is good and is more than legal height.
    . Bust out both bathrooms and toilets
    . Remove all internal doors and replace - years of punched holes etc
    . Replace all power points and light switches
    . Replace all light fittings
    . Remove half of laundry ceiling downstairs and rotten cupboard (roof mounted)
    . Remove all Laundry and replace with kitchen bench and a trough style sink so they can be utilised as both a Landry and a kitchenette
    . Upstairs master bed has an arch installed into 2nd Br - was using it as a clothes room etc. remove arch and plaster wall back up again to turn into 3br upstairs as was originally
    . Blinds in every room
    . Replace front door and door frame - weathered
    . Replace sheeting on carport roof
    . Replace rear pergola roof sheeting (currently mis matched colours)
    . Replace locks on security doors - no keys
    . Remove old applicances in back yard
    . Replace entire side neighbouring fence
    . Replace gate at rear of driveway
    . Replace downstairs toilet ceiling
    . Patch all plaster - holes, chips etc
    . Paint entire house
    . Paint front fence
    . Varnish upstairs outside deck
    . Replace a few eaves
    . Pressure and acid wash driveway

    So just a day's work ;)

    With annual leave clocked out for our wedding and honeymoon in October it's going to be a handful to get this back on market quickly. Step father is flying down from Cairns this weekend to give me a chop out but other than that it will be the fiancé and I.

    I look forward to sharing photos with you all and posting updates as I go.

    Cheers GG
     
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  2. vbplease

    vbplease Well-Known Member

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    numbers?
    reno budget, current val, expected val, current rent, expected rent?
     
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  3. Tom Rivera

    Tom Rivera Property Manager Business Member

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    At your suggestion I looked up Project Loganlea.... where are the completed shots! Am I missing another thread? Did the yellow glass survive!? I also can't believe you picked up that monster house and block for $310,000 in Loganlea! It's one of my top areas right now; Train station on the express line, Hospital, easy access to both motorways and the new(ish) Meadowbrook shops.

    I'm keen to see this renovation progress as well!
     
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  4. Greyghost

    Greyghost Well-Known Member

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    Hi Tom,
    Writing this on my mobile so I will look into the photos for Loganlea. Should be ones there of rotten floor in the demolished bathroom etc and the polished floors on completion.. I will check.
    The property is just I mean just outside the new zoning, so given it is on a main Rd with apartments behind it we may seek to make a submission to council to have it rezoned - down the track.
    It was a good buy, was getting $480pw for just upstairs (downstairs to be renovated still, no access for tenants). As for its value at present, not sure.
     
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  5. Greyghost

    Greyghost Well-Known Member

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    Going to the property today to start breaking stuff.

    Good tip for you guys if you don't know.
    There is a service callled 'direct connect'.
    They will connect the power for you with 24 hours notice - temp arrangement.
    No connection fee. Just higher usage rate.

    Designed for property owners who have pools they need to keep running and or doing renovations.

    Better option than wondering if tenant power is still turned on and if not having to hire a generator haha..
     
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  6. Greyghost

    Greyghost Well-Known Member

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    Will respond mate.
     
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  7. Tom Rivera

    Tom Rivera Property Manager Business Member

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    That's right, I saw those photos. The floors look amazing, and I'm glad you had them done professionally- it's much harder to polish timber floors than it looks. I was hoping you might have completed shots too!

    Those temporary power connections are fantastic! You can do later viewings (e.g. 6:00pm) with power to the lights, a quick vacuum before the new tenants move in, check all the light and power fittings work and keep the pool nice- plus it can make some work cheaper (professional cleaners, handyman, etc.).

    Did you pay the rush rate to get it connected so quickly? A week or two of temporary power only costs about $15, but you can pay about $110 to get it done urgently. It's misleading because they'll get it done within 24-48hrs if you don't pay the extra anyway.
     
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  8. Greyghost

    Greyghost Well-Known Member

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    Today's work completed:
    Removed all internal doors
    Removed all window fixtures and screws etc
    Pulled out all power points and light switches
    Removed fake wood panelling on downstairs rooms
    Patched walls on downstairs rooms
    Removed rotten overhead laundry cupboard
    Removed laundry ceiling
    Removed arch way joining 2 bedrooms together
    Removed vanity units
    Removed mirror tiles off the wall in 3 places
    Started sanding staircase

    Will demo bathrooms and toilets tomorrow.
    Going to put a door in the hallway so that you can go straight into the toilet, instead of via the bathroom door.
    Hand fresh plaster sheets downstairs
    Possibly pull carpet up
    Sand repairs on walls & sugar soap.
    See where we go from there.

    Gut feeling after day 1. - property feels better already. Bathrooms and tiling of bathrooms will consume majority of time I feel.
    we have also decided to replace the kithen cabinets/bemchtop. It's about 6 years old but chipped and cracked etc. so no point replaced bathrooms, floor coverings, air con, paint and switches and leave a kitchen that will only last another 3-4 years.

    There was a school fete on today at Groves private schools right near the property, they had an awesome fireworks show at 6pm. Was a good end to the day having a beer on the back steps..

    Update again tomorrow
     
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  9. RetireRich101

    RetireRich101 Well-Known Member

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    I still remembered project Loganlea, it was like yesterday..
    You live in Melbourne right? you drive up their with tools in your car?
     
  10. Greyghost

    Greyghost Well-Known Member

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    Hey mate.
    Loganlea Reno logistics was a disaster flying in and out.
    The Fiancé and I moved to Brisbane in Feb, we are based in Seven Hills/Camp Hill now.
    In saying that if you don't have 4 months and frequent flyer points to spend, doing this type of work yourself is near on impossible.
    Even being here now it is difficult. Pulling 60 hour week at work being peak season for accounting, gym etc and our wedding in 2-3 months, doing a full Reno on a house is a bit ask with little to no input from tradies or mates.

    For those who hold properties they foresee a renovation being needed, if you think a coat of paint and some light fittings will be the 'fix' you maybe mistaken. Once you start pulling things apart on most properties there is more demons lurking, and that is what saps your time.

    However the mortgage cost of this property is less than $240 a week, so we have the luxury of not having to 'tap out' and call in the tradies to get it done.

    I will put up costs etc on completion once I collate data, i will then try to ballpark what it would have cost if trades did 90% of the work.

    If you have even a little bit of confidence and some time I would recommend having a go. The skills you obtain on working on IP's are useful learning experiences for when you want to do work on your own place. You get plenty of 'in hindsight I would have done that like.....' moments which you can't foresee if you havent done that task before..

    Let you guys know how we go today..
     
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  11. Mindplay

    Mindplay Active Member

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    following
     
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  12. mickyyyy

    mickyyyy Well-Known Member

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    I had a place trashed and lucky insurance in place. Looking forward to your before and after pictures :)
     
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  13. Tom Rivera

    Tom Rivera Property Manager Business Member

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  14. Greyghost

    Greyghost Well-Known Member

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    Hi all.
    I have been MIA last few months on PC.
    This is prime example of the DIY process.
    Everything takes 30% longer than you anticipate, especially when you are not a professional trades person.

    In our case life got in the way. We finalised and had our wedding (back down in Melbourne) in October, followed by a 2 week overseas trip. For the last month we have been moving office into the city Bris. Xmas after that..

    I will put my hand up and say we have not been as diligent as ones should when renovating. Ie- going there every night after work, arriving by 9am on the weekends. No it's been more like arriving at 11am on the weekends.

    I guess also it is the opportunity cost. Life experiences vs holding cost of the mortgage on a vancant property and lost positive cash flow.

    I wrote this as I'm having a coffee at the property now.
    I will post an update with some pics this evening. The place has come a long way. It has been a case of redesigning some minor layout flaws in the property, jackhammering the slab to put a 3rd toilet in the downstairs ensuite (only basin and shower previously) moving toilet door entrances into the hallways for direct access to toilets, rather than via the bathroom.

    Plus we spent a bit of time looking to buy 150 Juers Rd Kingston - the fire damaged property.
    It sold for low $200's but for my figures, it would have made sweat equity (circa $70k) on completion, but based on end value it would have been difficult to extract equity out of it to move onto next project if you wanted to hold it. So our price was capped and we prob missed out by $20k, but you have to know your numbers and stick to them. This type of game (buy, Reno and hold) is numbers driven, if you blow out it really slows the pace.
     
  15. Greyghost

    Greyghost Well-Known Member

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    I read back on my thread and realised I haven't actually put a Reno update since day 1.
    Update.

    Plastered downstairs bedrooms where fake wood panelling was.
    Had entrance, hall, laundry, en-suite and toilet tiled jack hammered up.
    Entrance way had been tiled again in the late 90's and they used the plastic tile glue. Was difficult to remove, so I will be getting the entrance way ground back before tiling.

    Layout changes:
    Upstairs:
    Restored archway between toilet and bathroom making them 1 room, restored original hallway door to toilet. Keeps toilet and bath separate.

    Restored wall between master bed and bed 2. They had an arch and used bed 2 as a study/office.
    This killed me when I bought the place as bank valued it as 2br because of this (and didn't count downstairs coz it was a mess, even though legal height).

    Removed crazy lounge room cupboard. Looked like a Buddhist shrine.
    Restored the door to the hallway downstairs, alleviating the need to enter via the laundry.
    The laundry is being turned into a kitchenette.

    Removed kitchen.
    Replastered kitchen walls
    New doors all round (still not painted)
    Painted all lounge stained woodwork gloss white.
    Patched all window trim and painted all skirts and architraves in enamel.
    Yes enamel.
    Even though it's harder to work with, it is so much more durable than water based, in addition, the gloss gives a much better finish.

    Demo bathroom and toilet.
    Bathroom floor was rotten where showe and bath met the floor
    Had to cut the rot out, brace existing bearers in the floor and then apply a sheet of yellowtoungue (I know we should have used the bluetongue)
    Resheeted bathroom walls with villa
    Lay cement sheeting for new tiles.
    Installed shower base
    Built bath hob.
    Waterproofed both rooms
    Note, we made adjustments to the bath hob right before tiling.
    Note, we had to find a solution for the fact that the toilet sitting on the old tiles was higher (old screed style of tiling), so the waste from the toilet sat up.
    We did something a bit unconventional to find a solution. See photos

    Painted the walls one shade off white - Dulux Half Lexicon Grey
    Painted front balcony gloss white.

    Downstairs the bathroom - which only has entrance via master bed, had a moulded shower and a tiny vanity, a small accordion doorway in the wall, a step down, then just a tiled area waste of space.
    So I knocked the wall out and opened up the entire room.
    Problem is that the s trap in the slab was not concreted into the slab, just packed sand.
    So as it is the master bed, we thought while the concreting needs down, to also install a toilet in this room. We also squared off the archway, as there was no closed door to the en suite, and installed a door frame.
    Also chainsawed down a whole lot of trees around the place..

    Waiting on some equity release in the next couple of weeks to finish things off. But the list to go is as follows:
    Paint doors
    Install Kitchen
    Blinds
    Polish upstairs hall, living area, stairs and kitchen (before kitchen goes in)
    Carpet in bedrooms
    Sparky wire up exhaust fans in bathrooms and room fans
    Tile downstairs
    Install kitchenette
    Replace entire entrance door and frame
    Side and front fence
    2 sheets on carport roof
    All the sheets on rear pergola
    Front gutters
    +++++
    Budgeted circa $22k to complete.

    When finished should be:

    6 bedroom, 2 bathroom, 3 toilet, 814sqm legal height property
    Costs to date are about $6K. Tools purchased also.
    Holding cost - $5 months @ $1k pm interest. - this due to wedding/being lazy

    High Level figures:

    Est val, under $400,000 - not too concerned at present. Going to hold
    Price $312,000 inc stamps
    Reno ($6+$22) = $28K
    Total cost = $340,000
    Loan $272,000 (inc $22K reno to go)
    68% LVR

    Cash flow:
    $500pw - give or take.
    On 51 weeks rent, 7% management (actual), 5% interest, tenants paying water bill, repairs budget of $1K = $107-$110 per week positive geared before any deprecation benefits

    Post this, may look to buy next door for development potential in a decade or so..
    Just want this once completed for:
    1. to have my weekends back for a bit !
    2. to stop shelling out $1k pm cash flow on a vacant property!

    Pics to come
     
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  16. Tom Rivera

    Tom Rivera Property Manager Business Member

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    These big houses are pulling anywhere between $480-$620.00wk in the Kingston/Woodridge area....! You just have to balance the tenant quality.....
     
  17. Greyghost

    Greyghost Well-Known Member

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  18. Greyghost

    Greyghost Well-Known Member

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  19. Greyghost

    Greyghost Well-Known Member

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  20. Greyghost

    Greyghost Well-Known Member

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