Normal wear and tear is not the right term for the work that needs to be done to maximize the value of the home. I had finished 85% of the house when he died. His family did not want to keep it and I paid them to purchase it in November 2011. The purchase included 12 contiguous ready go build lots
I have never finished the last 15% of the structure which is zoned multi-use, which allows residential, commercial, or even both.
I paid cash for the main house, the small house and 12 ready-to-build new home lots in November 2011. I have had no loans on these properties at any time, until I arranged a $37,000 loan to offset moving and current bills owed. This was based on the $404,000 BPO (Broker's Price Opinion). The loan of $37,000 on a property that has a current lowest proable value is a 9% LTV. That is my total debt.
My list yesterday of things needed to do to finish the house includes:
Things that are the work of finishing the house that just need to be done. I faced several delays and finally just moved my business and residence from the Kansas City area to the project and I am the landlord, business tenant and residence tenant. But, my situation is flexible and although I do not want to move again, I can cooperate with any arrangement that includes the funding I receive and if the terms, regardless of what they are, leave me a clear and achievable pathway to success.
We need an estimated $xxxxxxx to do the below work. The property has an estimated "As Is" lowest value of $404,000. The lowest "As Finished" estimated value is $672,000 based on $140 per sq ft.
Spending $xxxxxxx to finish this property will raise its value by $262,000 for a net capitalization rate in value raising the value by $212,000.
The Exit Strategy:
To sell the house and I will keep the remainder to keep the business operaating. To sell the property as a bed and breakfast business. The very large destination vacation area consisting of Lake of the Ozarks and its twin lake The Truman Reservoir has had no drop in short term rentals (Air Bnb, Vrbo) or mid-term rentals and in fact that business is still a growth industry.
FINISH CARPENTRY:
Whole House Finish and Trim
This includes
a. All of the finish carpentry
b. most of the baseboard
c. finish wrap around all windows
d. finish wrap all doorways
e. WHOLE HOUSE WALLS INTERIOR WALLS PAINTED:
The sheetrock through the entire house has been textured and there is only minor damage or holes anywhere. But, the entire interior of the house needs repainting. It is not damaged but it can uses the paint.
I can do this interior work myself which will save nearly $4,000. I may do the ceilings, but really that wouldn't be wise.
Why not do it now and it will be good for a couple of decades. Obviously painting around my belongings can be done, if we roll the paint on instead of spray paint it, because of the large size and no obstructions. I would guess that it could be done in 1 week even though I will be working on the start up.
3. The furnace is in place and works, but the air conditioner compressor has not been installed outside. I thought they never used the furnace, but it has been used. It is in excellent shape. It will be no problem and can be done after I move my stuff in.
4. INSTALL FLOORING COVERING:
I have removed all the old carpet. Just need to buy flooring and pay installers.
5. REPLACE ALL LIGHT FIXTURE : Both Interior and Exterior. The existing lighting is now 20 years old and is low construction grade lighting. Updating will make a remarkable difference.
6. COMPLETE NEW KITCHEN: Mr. Mason had me cobble together a makes-shift kitchen. It is not anywhere near the credibility we want to show new clients wanting us to build homes for their families. The amount a new kitchen will cost using Lowes or Menards will be around $11,000.
This kitchen can be installed before, after or during my move. But, I can't get quotes, dates, or amounts for any of these categories for finishing and updating until I know how much funding and I can raise and what the terms are. We will need to know the amount of work is to be done to make sure we haven't covered something. I am working with a total of $151 per foot for this work so I should be high instead of low.