Last Ike post, promise, then back to REI. The Hurricane has been sort of all-encompassing around here for awhile.

We live in a heavily wooded area that sees frequent power outages with or without hurricanes. So when we built our primary residence 3 years ago, we tried to add a few items to make things easier.

Cooking

When it came time to pick appliances, this red Lacanche Cluny was our favorite right from the beginning. When we learned it would work with propane and during power outages (not all gas stoves will due to complicated electric ignition systems) we cut two fireplaces from the floorplan and worked it into the budget.

During Ike, we lit the burners with regular kitchen matches. The propane oven was a bit more difficult. We’ll get either  fireplace matches or a long nozzle, bbq grill lighter for next time.

Our emergency chocolate cake was a bit gooey in the middle. Someone learned the hard way that turning down the oven heat turns off the oven burner element which does not re-light itself without electricity. After that, we used the set-it and leave-it method of cooking– no fiddling with the temp.

Washing Clothes

We dubbed this, ‘The Panty Tree.’ I bought it years ago from Lehmans for drying hand washables but it appears to be out of stock. Here’s another model from Stacks and Stacks that looks good.  

Hoping the power would return, we put off washing clothes for as long as possible, but eventually it became a necessity. Two buckets of cold water from the well on the back porch for washing and rinsing worked short-term, but if we’d been without water and electricity any longer, some hot water and larger buckets would’ve been needed to handle bigger and dirtier items like the mister’s coveralls.

As a side note:

The little experiment with  washing had an unexpected consequence: A trip to the chiropractor 10 seconds after the power returned. Something about lifting, carrying  and throwing out buckets and buckets of water did not agree with this 47 year old back.

Drinking Water

As mentioned earlier, we had a second well with a hand pump installed shortly after moving out here, fearing that our poor cows would have to do without if we ever had an extended power outage. Being relative newbies to country life, we had no idea that a big storm equals awfully dirty well water, especially with a relatively shallow well.

This was a lifesaver:

The Mission Filter from Eagle Springs is a  simple wonder. Developed for missionaries and relief workers, it utilizes 2- five gallon buckets and readily available materials to provide safe water affordably. We bought ours and stuck it in the storage shed thinking that if we didn’t need it, someone probably would eventually. With power out and the mister working, we had no way to hook up the electric pump that supplies our home with running water to the generator and the water from the shallow well looked like chocolate milk.

This was a godsend. We filtered all  our drinking water, wash water and cooking water for a week. Not fun, but better than standing in line at the Fema Pod waiting for a  hand-out. And junior mister has lovely bicep muscles to impress all the girlies at 4-H.

Toilets

A little gross, but necessary. Without running water, toilets don’t flush– who knew? We did. From lots of prior experience.

First order of business after the lights went off was to secure a way to flush. The kids found small buckets in the garage and put one in each bathtub. They filled them with water from our above-ground pool. But the real hero in this tale of woe is the toilet itself:

We had the Toto Ultramax installed in every bathroom based on recommendations from the forums on Gardenweb and Terry Love’s website. It uses just 1.6 gallons of water which meant fewer trips to the swimming pool and, wonder of wonders, there wasn’t a single espisode of clogged pot in 10 days. Amazing!

Emergency Power

And how can I forget the generator?

Taken with flash.

And how things *really* looked.

Grading papers and working on homework by the only light in the house. Notice how JoJo becomes a homework assistance dog on command.

Calculator? Check…

Mechanical pencil? Check…

Way too much trouble, woman! Leave me be…

Big stretch…

Just keep rubbing and all is forgiven.

Okay! Time to put Hurricane Ike to bed. It’ll be interesting to see how the real estate market reacts now that the crisis is over.

Popularity: 7% [?]

Tags: Hurricane Ike, hurricane prepardness, hurricane watch, hurricanes

The mister and I compulsively prepare for things that usually do not happen… because sometimes they do. But certainly not often enough to account for our massive indulgence into all things survival-related. To say we worry a little would be a massive understatement.

There was a time when we did not fret. We road motorcycles, ran with scissors and ate from the roadside roach-coach. That glorious time of freewheeling, carefree splendor ended about 1o minutes before the first little Brz made her spectacular appearance to the tune of running RN’s, squealing doctors and an emergency c-section. Since that moment, we’ve padded every sharp corner, both real and metaphorical, within our sphere of influence. Some of that padding came in quite handy post- Hurricane Ike.

When I Was a Child, I Thought as a Child…

Once upon a time, I thought it would be great fun if the eye of a hurricane would pass right over my house. I remember sitting on the living room floor, back to the pre-selected sturdiest wall, listening to the tinkling sound of shingles lifting off the rooftop waiting… just waiting for the dead silence that would indicate we were so lucky as to be RIGHT IN THE EYE OF THE STORM!!

What fun! We could run outside and dance on the driveway and brag to everyone on the playground. Wouldn’t we just be the coolest?

(<—insert massive cringe here)

At 4 am on Saturday, September 13th, my childhood fantasy became real life and, no, not so much fun. Let’s just not do that again, okay? All the little Brz’s slept right through (with thanks to Icynene spray-foam insulation which makes this big roof practically sound-proof.) The mister swears he didn’t sleep a wink yet his snores betrayed him once again. Only JoJo can testify to the unnerving experience of 60 minutes of unnatural calm sandwiched between 100+ mph, multi-directional banshee whoop-ass. (Yes dd2, I said ‘whoop-ass’)

Tomorrow, if we still have electricity and internet, I’ll post a few photos for your amusement to illustrate a few coping techniques. And no, dd’s of mine, there will be no pictures of our bathing adventures beside the swimming pool… no need to traumatize the blog-world as well as the neighbors.

For now, let’s just say I’m firmly convinced of the usefulness of a well and hand pump on every street corner, thank you Lehman’s Non-Electric Catalog.

Taken immediately after the storm. Someone had a very rough night.

Popularity: 5% [?]

Thank you, thank you, thank you to everyone who called, emailed, commented here, etc. All Brz’s are safe and accounted for. Hurricane Ike is *not* something we ever want to repeat. I’ll post a full report with pictures asap.

But to celebrate having both electricity and internet service, here’s a couple:

Right before the rain hit, I felt compelled to rush out and get a picture of the tree deck in the backyard. This was taken from inside the screened porch which accounts for the poor quality.

And this was taken Sunday. That’s Mister Junior trying out the new jungle gym.

Updates coming very soon– thanks again everyone for all your prayers and concern. We’re a little shook up, but otherwise unharmed.

Popularity: 6% [?]

Tags: Hurricane Ike, hurricane prepardness, hurricane watch, hurricanes

A few pictures:

It’s tough work getting ready for a Cat 3 hurricane.

But having a big sis home to rub your head ’til you fall asleep helps.

Watching the initial reports coming from the coast. Apparently Geraldo Rivera has  suicidal tendencies as he reports that it’s ‘certain death’ to stay in Galveston… where he happens to be staying.

That’s our county…

And the goofball contingent skips the news and watches Scrubs reruns.

JoJo doesn’t want anyone going outside to check the weather.

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Tags: , Hurrican Ike, hurricane preparedness, hurricanes

No rain to speak of, lots of gusty wind. The mister survived his sleep-deprived ladder adventures and retreated to his cave for a bit of rest. Unforutnately, the electricity went off after a couple of hours which brought him out to fret once more.

The electricity came back and all the Brz’s danced on the driveway like crazy, then ran inside to enjoy the air conditioning for as long as possible.

The TV stays on with frantic weathermen waving their hands and talking in high pitched voices like girly-men. Politicians hold press conferences which yield no usable information, yet produces soundbites of CYA-type stuff to be replayed endlessly at their command. Stay at your own risk. No one’s coming to get you. You’re responsible for your own safety.

I’m liking politicians less and less as the day wears on.

If we’re fortunate, the electricity will stay on until bedtime. That would be sweet.

Pictures soon. Hopefully.

Popularity: 7% [?]

Tags: Hurricane Ike, hurricane prepardness, hurricane watch, hurricanes

The mister is standing on a ladder screwing big sheets of plywood to upstairs window frames. He’s had 3 and a half hours of sleep in the last 48.  The mrs. can’t watch.

The sky is cloudy. The weatherman says we’re taking a direct hit. Our county has issued a mandatory evacuation. The phone rings with relatives and friends wanting to know if we’re staying. Yes indeed. We’re high and you can’t run from the wind.

 Our relatives, fleeing from the storm surge, are here and settled in the gameroom. The last little Brz chickling decided to come home, thank goodness, and is safely ensconced in the bed next to her younger sibling. We’re washing dishes and running laundry trying to get ahead of the inevitable once the electricity goes out. JoJo paces about, whining at whoever will listen.

It’s all quite surreal…

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Tags: , Hurrican Ike, hurricane preparedness, hurricanes

Just found this article over at Minnesota Investment Real Estate blog written by fellow investor Scott Ficek. Love his ideas but realized that many would not work here in Texas because, strangely enough, Minnesota has snow and we have hurricanes.

So here’s a list of 7 ways to generate more income from single family homes Gulf Coast Edition along with an estimate based on Brz experience of how much each will add to rent value.

1) Offer to allow pets on a case by case basis with a big pet deposit and $25/month/pet.

2) Challenge your property taxes. In Texas, with a hefty 3% property tax on non-homestead property this is just about mandatory, especially when county officials decide to raise revenue by artificially inflating home values. Every. Stinkin’. Year.

3) Install ceiling fans. In every room. Make sure they don’t squeak. $15/month or so.

4) Cover windows with solar screens. Point them out when showing the house because most won’t notice otherwise but seem duly impressed once they do. $10-15/month. Blowing an extra six inches of cellulose in the attic doesn’t cost much and will up that to about $25/month total.

5) Charge extra for the shed in the backyard. We don’t, but others we know have (by claiming they use it for ‘business’ but will clean it out for an extra $25/month)

6) Upgrade the flooring to something wood-like…vinyl planks, laminate or the real thing. Tenants around here will pay more for this even in lower income rent homes. Maybe it’s a regional thing, but nobody likes someone else’s dirty carpet. $15-$50/month depending on size of home.

7) Offer hurricane insurance. Charge $200/month to guarantee hurricane-free lease term. Cross fingers and pray. Alot.

Your Mileage May Vary, Etc. Etc

Of course lipstick on a pig and all that. Ceiling fans in a crack house will not raise the rent. And the cost of upgrades has to be weighed against length of time to recover costs, blah, blah. And implementing all 7 will not raise the rent by $340. There’s only so much you can charge for any given home based on school district, neighborhood, market conditions and other stuff.

Right about now, I’d trade Ike for a little snow, thanks much.

Popularity: 8% [?]

Tags: cashflow, increasing cashflow, increasing rental income, real estate investments, single family homes

This is Ike:

And this is where Ike is heading:

Projected path…

That would be us in the crosshairs.

Ugh….

If past history is any indication, we’ll probably be without electricity and therefore out of touch for awhile. Our home is on high ground and we have plenty of gas for the generators and a hand-pump well just in case. Still, this one is making me nervous probably because, for the first time, all the little Brz chicks will not be in the nest with us.

I’ll keep posting as long as possible, but if we disappear for a bit, don’t worry.

Popularity: 7% [?]

Tags: Hurricane Ike, hurricane prepardness, hurricane watch, hurricanes

We heard back on the Bee House today. The bank dropped the price a whopping $1000. Unfortunately, this property just isn’t profitable at the asking price considering the amount of work needed. We’ve countered but somehow I’m just not hopeful that someone 500 miles away will see reason. Maybe a few dead bees glued decoratively to the paperwork would help.

So… back to looking at homes in move-in condition. Each of the homes in the right price range have at least one little problem. Our next option has two. Or three.

Let’s call this the House of Purple for it’s lovely wine-colored, wall-to-wall carpeting. That would be #1.

And then there’s the location, backing up to one of the most heavily traveled freeways in Texas. Standing in the backyard requires an act of will-power.

The floorplan’s not so hot either… okay but not great.

The Good Points

On the bright side, the mister absolutely adores this house. It has all the upgrades that a testosterone infused manly man could want– tech shield on the roof, upgraded insulation package, gutters of loveliness, and, oh… did I mention the mangous garage on steroids big enough to house 2 cars and a boat and an entire Bob Villa workshop?

So what man installs purple carpet?

Having a hard time getting past that road noise… but that *is* what makes this place affordable.

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Yesterday the mister spent his entire off-day tearing the siding from the Magnolia house looking for leakage. Fortunately, our new tenant is a former homeowner and knew that buckets of water oozing out from under the baseboards equals bad. 

It was certainly not the mister’s intention to spend 8 hours troubleshooting a hidden water leak, assisting the plumber with various sharp tools that ruined a perfectly good sheet of hardiplank siding and resetting a toilet with 3–count ‘em– three wax rings. He has other important things to do (like breaking JoJo from chicken biting) but not once did he complain, sweet man.

The Downside to Owning Rent Houses

Don’t know how many times I’ve heard folks say things like “I could never be a landlord… all those calls to unstop toilets in the middle of the night…!” to which I usually say something pithy such as… ”buy ‘em a plunger with the name of a good plumber lovingly engraved on the handle, because if the tenant plugs the toilet, the tenant’s responsible to unplug the toilet. And if I make the service call, I’m tacking on a $25 service charge to the plumber’s fee and all the little Brz’s get take-out for dinner.”

Service calls can definitely be minimized with good management skillz. However…

The second law of thermodynamics states that everything in the universe is moving from state of order to a state of disorder. Things break, fall apart, wear out, rot and disintegrate for no good reason. And while using higher quality products/materials and the D.I.R.T philosophy helps (do it right the first time), nothing changes the fact that managing a portfolio of rent houses can and will impose on your free time.

The Upside to Owning Rent Houses

Let’s get this straight. The mister and I would not be doing this if it wasn’t padding our bottom line every month. Positive cashflow is a wonderful motivator. And I’m talking spendable cash, not the very real, but can’t-spend-it-today profits like tax write-offs, depreciation and such. While these types of benefits are quite nice and not to be discounted, they do little to motivate the investor who’s just spent 12 hours working his Big Boy Job only to turn around and slosh through toilet run-off for another 8. 

So how much cashflow is enough? Ultimately, each investor has to answer that question. How much will it take to keep you motivated? 

Personally, I want $300-$500 per month after principle, interest, taxes and insurance. And that’s per house or unit. (We’ve passed on duplexes and triplexes with $250/month cashflow per unit because the total amount of cashflow just wasn’t worth the extra time, higher turnover, maintenance and upkeep involved.)  This higher level of cashflow allows a quick buildup of cushion in the business bank account and provides extra for things like mini-vacations, college tuition and (of course) money to reinvest.

Epilogue

The mister found the leak, closed the siding and scheduled the plumber for a return visit for some reason that remains shrouded in mystery. Late last night, while eating his cold pasta long past dinner time, he said, “You know? Despite everything, I really do enjoy that kind of work.”

Crazy man…

Popularity: 8% [?]

Tags: cashflow, landlord tenant issues, positive cashflow, rent houses, repairs

The grand experiment is over… and the focus of the blog has returned to real estate investment and building family wealth. Over the last few weeks I’ve learned a few things…

Sewing is a joy, but I seriously don’t want to write about it.It’s a hobby, a relief, a pal. And while there may be a picture or two posted from time to time, deconstructing the minutiae of grading a pattern or problem solving a sticky fitting issue reintroduces stress into my stress-relief.

Sawdust is in my blood. Thanks Dad. Can’t get away from it and don’t really want to anyway. Houses can be homes. The rehab process is fascinating, full of cool stuff to play with and the entire process is a huge three dimensional puzzle with a big, fat payoff at the end. Paint, flooring, hardware, cabinets… it’s what we do for fun around here.

Teaching others how to build family wealth as the road to financial and personal freedom is a passion. I truly believe it isn’t how much you have, but what you do with it that matters and anyone, in this or any economy can prosper.

I can sit again. Seems like a minor detail, but the chronic pain in my hip and lower back had built to unendurable levels… and now it’s gone. Details at some point, but for now, enjoying this new-found liberty takes precedence over writing about it.

And now for something completely different….

JoJo has killed 2 chickens in 2 days. If anyone has any ideas for breaking a dog from loving him some chickens to death, please share.

Popularity: 4% [?]

We’ve made an offer on the Bee House. No details to report until negotiations are over but the mister and I are already hip deep in fantasy make-over land. This mental exercise involves planning a possible rehab three ways: Economy Model, Sensible Durable, and Over the Rainbow. We generally end up pulling elements from all three to get to some type of solid, lovely home with enough inexpensive oomph to bring in maximum rent. 

House Details:

This house has 4 bedrooms, all upstairs. Both full bathrooms are plain, but durable and functional– the original owner upgraded to a deep soaking tub in the master bathroom and higher end faucets on all sinks and tubs. Shower surrounds are white ceramic tile and need only a bit of caulking. Bathrooms are white… all white. Very White.

The upstairs carpet is in okay shape except for the stairs which may be beyond cleaning. Bathroom and utility room vinyl flooring is ugly but otherwise fine.

The galley kitchen is low-end builder grade everything. One cabinet door is smashed to pieces but we can probably find a replacement. The counters are white laminate with several chips and small chunks missing. The layout is nice and would function well but overall the kitchen is a small for a home this size.

There’s one long, large combination living/supposedly formal dining room plus a breakfast nook downstairs. The builder grade carpet and vinyl flooring are shot beyond keeping with holes and mystery stains everywhere.

Conclusion: One Big Boring Builder Grade Box

Fantasy Planning Session

Economy Model Goal: Expend as little cash as possible to make the house livable. Absolutely nothing else.

Plan:

• Clean carpet in livingroom/dining room  and hope for the best. If unable to salvage…
• Replace entire downstairs floor with peel-n-stick flooring, either Trafficmaster Allure ($1.50 sq ft) or Novalis Vinyl Plank Flooring ($1 sq ft).

Our local store only carries a couple of colors of Trafficmaster Allure in stock– the 5th and 6th from the left (I think… hard to tell from the photo.)

Stock photos from the manufacturer. Update on Trafficmaster coming soon– a friend installed this in her entire home this summer. Full write-up to follow.

Samples of Novalis Vinyl Plank Flooring from another project.

• Clean upstairs carpet, including stairs. Lots of chanting, finger crossing, etc.
• Find replacement for missing kitchen cabinet door, fix laminate counters with epoxy.
• Paint entire house with white semi-gloss– trim, ceilings, walls all the same shade of boring white. Less expensive as the entire house can be taped, draped and sprayed quickly.
• Cover windows with cheapy miniblinds.
• Install el-cheap-o white appliances

Sensible/Durable Model: Goal: Spend a little extra to get tough finishes that will hold up to rough tenants with rougher kids.

Plan:

• Replace downstairs flooring with ceramic tile throughout in a neutral color. Seal grout with Aquamix Grout Colorant. We’ve used Aquamix in our home kitchen and rentals and highly recommend it to turn tile floors into easy care flooring. No more worrying about stained and dirty grout and cleaning the floor between tenants is unbelievably easy.
• Clean upstairs carpet
• Replace carpet on stairs
• Paint entire house in two colors of semigloss paint (Sherwin Williams Softer Tan for walls and Dover White for trim)
• Install ceiling fans in bedrooms and living room.
• Replace broken kitchen cabinet door *or* turn that section of cabinets into an open microwave shelf.
• Replace laminate counters with higher end laminate.
• Skip the miniblinds and install 1″ wood poles and Ikea tab top or grommet top curtains.
• Install black appliances with a smooth top stove

Ikea Merete Grommet top curtains. These come in only one length and have to be hemmed. We have them in a garage apartment in navy blue. We’re trying to move away from miniblinds as they’re a cleaning nightmare.

Higher End/ Luxury Model: Spend enough to attract top-tier tenants paying premium rent. All expenses should be recouped in 2 years.

• Replace all flooring with ceramic tile and/or laminate flooring downstairs and new carpet upstairs with tile in the bathroom and laundry room.
• Paint house in two colors with soft accent colors like blue or sage green for bathrooms.
• Install crown molding downstairs.
• Replace all light fixtures with a combination of ceiling fans and better quality lighting.
• Gut the kitchen and replace with Ikea cabinets
• Install granite counters with tile backsplash.
• Pour concrete patio and install cover in backyard.
• Install stainless steel appliances.

No earthly idea when we’ll hear if our bid is accepted and/or countered so looks like there’s plenty of time to plan.

Popularity: 14% [?]

Big rain the other day brought these unexpected visitors:

That’s right… eat and run you little ratfink.

Unusual to see live armadillos in the yard, especially during the day. Heavy rain probably brought them out of their holes by the creek.

Guess this one’s camera shy.

Popularity: 4% [?]

Here’s a foreclosure I toured today with Sandra the Long-Suffering (who earned her title putting up with the mister and mrs. with nary a scowl.) This 4 bedroom/2 and a half bath/2 car garage brick is only 2 years old.

Not too bad… so why has this little gem sat unloved so very long?

Could it be the tacky wallpaper borders strewn about with such enthusiasm? Nah… they’re just stapled in place, not glued.

The kitchen *is* a bit small for a 2200 sq. ft. home.

Could it be the spacious backyard? Perhaps buyers dislike mowing with great intensity…

Or the plain, vanilla house-rear?

Wait… what’s this? Perchance a clue? How on earth does one get a hole in the siding with lovely duct tape trimmings?

Yeah… here we go. This just might scare off potential buyers for months on end…

This home needs the usual– new flooring, paint, appliances, some minor sheetrock repair, plus the fix to the hole outside and a broken kitchen cabinet door. The floorplan is good, the price is right and the school district is the one most favored in our area. There doesn’t appear  to be any signs of current bee activity and, best guess, that hole was punched in the siding to fumigate the insects… but I’m seriously stumped as to why the bank doesn’t pay someone to clean up dead bees?

Popularity: 4% [?]

As the first of the month roles around, the lovely rent checks arrive at our company post office box and remind me, yet again, why I love this business. Monthly Gratification, while not instantaneous, is frequent enough to fuel the fires of enthusiasm and fan the flames of fervor needed to continue the hunt  for homes with that elusive quality landlords hold so very dear…

…Positive Cashflow

There’s a saying amongst the single that one must kiss many frogs before finding one’s handsome prince. And while the Mrs. does not advocate the kissing of amphibians of any variety, there is a rather close correlation in the world of rent houses and real estate investment that goes something like this:

One must run many numbers on many houses before one can recognize a single family home that will cashflow in a positive direction.

And as a secondary sidenote:

One must actually buy one or two and live with it awhile before one recognizes how much positive cashflow is necessary to actually pad one’s business account rather than maintain the status quo.

And a tertiary:

If one buys a dog, one must kick it to the curb at the earliest opportunity whilest learning from one’s mistakes and prancing forward with one’s investment strategy or one is likely to become one of those bitter individuals that claim  only slumlords can make money in real estate.

Definitely not a dog…

Popularity: 5% [?]

Tags: landlord, rent houses, tenant