how to make $110k 12mths without quitting my day job

[bumblegoodie]

geezee.... i really feel for you!!!

You can have the option of putting in rubber hoses instead of copper pipes.

Another thing to look out for is make sure the hot water system is located inside the house. otherwise the will take that as well.

Whilst doing reno with my mate , i saw colour bond fences were taken away as well WTF??!?!?!

Once it is rented then no problems with people breaking in and taking things away!!!

 

[neK]

Maybe its time to put a makeshift bed in there and sleep there....

Does it look like a full work zone or a habitable house?
If its a work zone, might as well put up the temp fence and make sure everything is bolted in and tightened properly.

 

[Freedom1]

Thanks for sharing this, it has me thinking about more ideas.

But just wanting to know all the details of feasibility, Eggnog mentioned that you might have missed some costs. Do you think you have included everything, or under estimated as Eggnog thinks you have?

Also, does the approval for the subdivision sometimes run into possibly years before approval, or does it always happen within months?

 

[Erica]

Maybe its time to put a makeshift bed in there and sleep there....

Does it look like a full work zone or a habitable house?
If its a work zone, might as well put up the temp fence and make sure everything is bolted in and tightened properly.

Work zone- definitely not a habitable house, no water now obviously and no lights (electrician half way through rewiring most of the original electrics- also no electrical earth since that was connected to the copper pipes), and I really can't sleep there, as I have a 4yr old to look after and this is not a safe house for a kid, plus my hubby works until ridiculously late most nights so he isn't able to watch our kid. Plus I'm tearing my hair out harassing the landscaper to get back around and finish the fencing which he started 3 weeks ago then pissed off to do another job. Very frustrating, I will padlock all fence access points as soon as it is up- should be by this weekend (so landscaper said)

 

[Erica]

yes costs underestimated

Thanks for sharing this, it has me thinking about more ideas.

But just wanting to know all the details of feasibility, Eggnog mentioned that you might have missed some costs. Do you think you have included everything, or under estimated as Eggnog thinks you have?

Also, does the approval for the subdivision sometimes run into possibly years before approval, or does it always happen within months?

Yep, I have a bad habit of underestimating costs and time to get things completed.

As I mentioned earlier, I have already gone over budget on the reno and it is a long way from being finished, budgeted $30k looks like more like $50k now (just got quote from painter $14k WTF! I only budgeted for $5k)

The time frame for completing reno I thought 8 weeks- no way in hell now, getting tradies out is one hell of a challenge, and I'm stuck only going there on weekends now that I'm back at work, from here in work will be painfully slow, so more holding costs (extra $1500 every mths it is vacant)

Yes it is possible for the subdivision time to blow out as well, my last subdivision took 2 years! Partly due to my own inexperience and other delays with each and every gov department involved along the way, which you have completely no control over. (Although this one I am still hoping on 12mths to complete.)

I can see my profit margin dwindling by the day...

 

[brisbane 04]

Hi Erica,
Thanks for your true and frank post. I'm also following a similar path to you in buying properties with subdivision potential and also doing a renovation to the existing property. My previous experience was just buying well placed properties giviving them a quick Reno and renting and holding. Lately we have been forced due to the ability to obtain funds to do more extensive renovations rather than just purely cosmetic changes ie new kitchens, bathrooms, adding a laundry etc. When I come home excitedly after finding a property and telling my wife about it and saying it will only require $15000 worth of renovation she just doubles it and in most cases she is right. The subdivision process is frustrating as you have said and in the 2 cases I have done it it has taken over a year to complete. Thank goodness however the properties were rented at the time though.
Good luck will be following your posts.
Martin

 

[Ace in the Hole]

The price for gaining real life experience.
Still better than paying some seminar guru for a bunch of theory in my opinion, as long as you learn from your mistakes and become more creative from it.
Good on you for having a go.

 

[Erica]

The price for gaining real life experience.
Still better than paying some seminar guru for a bunch of theory in my opinion, as long as you learn from your mistakes and become more creative from it.
Good on you for having a go.

So true- I look at it this way; I spent 3 years and $30,000 to get my Health Science degree 15 years ago, so these reno/develompment cost and time blow outs are just the price and time invested to get my education.

I'm sure in a few years time these lessons will be worth a lot more than what I have spent on the mistakes along the way, especially if I continue to improve and apply my new found knowledge, and keep investing in better projects.

 

[Ace in the Hole]

Experience gives you confidence.
Confidence leads to action.
Action produces results.

 

[jim1964]

stole all the copper pipes off the house last night

I wonder what the scrap man thinks when people regularly roll up to cash in with copper pipe.Surely the alarm bells would ring.I asked my recycle man today what happens when people do this on a regular basis.........his reply was Dunno Mate.

 

[Ace in the Hole]

I wonder what the scrap man thinks when people regularly roll up to cash in with copper pipe.Surely the alarm bells would ring.I asked my recycle man today what happens when people do this on a regular basis.........his reply was Dunno Mate.

Especially brand new shiny pipes....

 

[Erica]

my plumber was telling me about a big job his crew had finnished in a school just before last christmas, when they came back after the break $20,000 worth of copper gone, theives even took off the gyprock to get at internal pipework, and there were signs it was removed by professionals because what was left in the ground had precision cuts so what they took could be reused/resold as new.....

dodgy buggers out there

 

[Brady]

Probably was your plumber Erica haha

 

[Nemo30]

As I mentioned earlier, I have already gone over budget on the reno and it is a long way from being finished, budgeted $30k looks like more like $50k now (just got quote from painter $14k WTF! I only budgeted for $5k)

Erica if you need another option with the painting let me know. My dad is semi-retired, but was a painter by trade and lives in the southern suburbs of Adelaide.

 

[Erica]

Erica if you need another option with the painting let me know. My dad is semi-retired, but was a painter by trade and lives in the southern suburbs of Adelaide.

cheers, I've sent you a private email to get his number, I definitely need a comparison quote

 

[VernSilver]

Erica, back in the day when I was in my late teens I knew a developer who was doing a big project. He paid me to sleep onsite, gave me a phone so if there was any trouble I could call the cops. The pay was ok and I only had to call the cops one night which was good. Ripping off development sites, i heard some years later, is a fairly common practise amongst criminals...
Know any young fellas? Might prove cheaper to pay someone $30 a night to sleep there. I know a bunch of young fellas who would LOVE to get paid to have a place of their own for a few weeks and not live with their parents for a bit...

 

[Freedom1]

Thank you for being so open Erica, it is helping others learn. Yes I always try to over estimate, count on the worst happening, and then if it is still a viable deal only then will I go ahead.

With the idea of having somebody sleep there, great idea. We always plan to have somebody sleep at our developments ASAP, whether it be a quick pretty and rent of the front house or similar. But with having a young guy sleeping overnight, as an ex employer my only fear is insurance. What if he injures himself, gets attacked, something like that? $30- per night would be a cash rate, no insurance there, and would your other insurances cover him? Just a thought. As well as over estimating, I always like to make sure I am protected and covered.

Minimising risk and therefore stress is always a great idea!

 

[willair]

I wonder what the scrap man thinks when people regularly roll up to cash in with copper pipe.Surely the alarm bells would ring.I asked my recycle man today what happens when people do this on a regular basis.........his reply was Dunno Mate.

Most Scrap Metal dealers want up front either a ABN number or drivers licence and most take the rego numbers ,that's the way it works in Brisbane Police and the ATO are in the bigger picture before one walks in the door..

 

[cd83]

Hi Erica,

Do you have any recommendation for planning consultants who deal regularly with Marion council?

Cheers,

Colin

 

[Erica]

planning consultant

Sorry, I'm not using a planning consultant, don't know of anyone specifically, maybe others reading could recommend.

Interestingly though, I have had lots of unsolicited approaches from various companies looking for work to do my subdivision and build, they just slip a letter under my door advertising their all in one type services, so there are lots of them around, don't know what they charge though.

I have now employed Weeks and Macklin building group to do all the planning applications since my initial council application was knocked back, signed a 'preliminary services agreement' for $3k I get concept plans, elevation drawings for both new property and existing, all council applications, soil testing, engineered drawings for new build, told will be 6 weeks until all engineering ready to be submitted for residential code certification.