New Build in Chanute, KS

New Build in Chanute, KS

Bernie NeyerPro Member
Investor · Chanute, KS · Member since 2016 · 160 posts · 60 votes

I sort of began this in another forum, but didn't find the category about new builds until later and felt it really belonged here. As they say, "A picture is worth a thousand words." I will be posting pictures as the build proceeds.

Chanute, KS is a small town in SEK with a population of ~9,000 people. I've lived here now for nearly 40 years. I began investing in rentals about 20 years ago, with most of that locally. I did have some investments in towns near by, but problems with finding managers or tenants I liquidated the holdings and changed my external focus to Wichita, KS. 

 Chanute is where I live and we needed some up to date rental housing. I wanted to build a unique structure, but the city prevented me from doing so, so I decided to build a duplex on a lot I had. I started late due in part to the Corona shut down and the sub contractors had to be released for other projects. We have not been able to smoothly schedule them, but the build should be done by August 1st. 

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Investor · Bentonville, AR · Member since 2014 · 759 posts · 379 votes
5y

@Bernie Neyer you should chat with @Tyler Casey regarding your Pittsburg action.

See this reply in the discussion

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  • Bernie NeyerPro Member
    OP
    Investor · Chanute, KS · Member since 2016 · 160 posts · 60 votes
    6y
  • Bernie NeyerPro Member
    OP
    Investor · Chanute, KS · Member since 2016 · 160 posts · 60 votes
    6y

    The first picture was the empty lot. Before I get too far ahead of myself, I'll post the floor plan.

  • Bernie NeyerPro Member
    OP
    Investor · Chanute, KS · Member since 2016 · 160 posts · 60 votes
    6y

    Here they are digging the footings.

  • Bernie NeyerPro Member
    OP
    Investor · Chanute, KS · Member since 2016 · 160 posts · 60 votes
    6y

    Here the slab is ready to be poured. They needed to have shot the grade before they did the footings and really needed to level the lot, but they were trying to beat the rain. When it rains here, it can take a while for it to dry out. However, you don't need to worry about compaction.

  • Bernie NeyerPro Member
    OP
    Investor · Chanute, KS · Member since 2016 · 160 posts · 60 votes
    6y

    When I worked construction years ago, we actually poured a pad this large and moved the concrete by hand. The sub contractor used a pumper. The concrete was thinned with a chemical agent instead of hydraulic (water). The effect was a better concrete that if thinned with water. 

    The pour took less than two hours and then all they had to do was let the chemical cook off some to finish the pad. 

  • Bernie NeyerPro Member
    OP
    Investor · Chanute, KS · Member since 2016 · 160 posts · 60 votes
    6y

    The actual construction is of SIPs, Structural Insulated Panels. Normal stick built construction, you frame up the walls, stand them up, put OSB (oriented strand board), set the trusses, OSB the roof. The rest of the process in finishing out the framing.

    With SIPs, they are manufactured at the manufacturer's building an trucked to the job site. You can see the size of the panels from the pictures. When I went to work they were unloading some of the panels and I thought I'd skip out of work about break time an see how they were progressing, but a fellow worker who came by the job site about 9:30, told me they were 75% done. The first picture was what I found when I got there.

    Keep in mind that there were only two framers and a crane doing this work. When I did construction there probably would have been 4 to 6 workers on this site.

    You can see how they used the crane to lift the panels into place. 

  • Bernie NeyerPro Member
    OP
    Investor · Chanute, KS · Member since 2016 · 160 posts · 60 votes
    6y

    The panels are OSB with polystyrene insulation. They are made tongue and groove and simply slide together. They are initially screwed together, but when completed they are stapled permanently together.

    Final panel didn't quite fit. It was a little too large and the foundation was off 1/2 inch over 60 ft. Not bad, but they had to alter the panel some to fit.

  • Bernie NeyerPro Member
    OP
    Investor · Chanute, KS · Member since 2016 · 160 posts · 60 votes
    6y

    Here is the completed assembly of the SIPs. They began framing the interior walls. Because of scheduling issues the framers were delayed a week getting on the site. They also took a short vacation from June 19 to June 22 and will be back on the 23rd. They are supposed to have it dried in by the 25th or 26th at the latest. This means if they had been able to work through from the time they set the first panel to dry in, they would have been done in 6 days.

  • Bernie NeyerPro Member
    OP
    Investor · Chanute, KS · Member since 2016 · 160 posts · 60 votes
    6y

    I guess I've been posting instead of adding to my thread. Hope that the pictures are viewable by everyone.

    Today I drove over to Pittsburg, KS to talk to the cabinet maker and select what finish and stain I wanted. I then had to drive over to Parsons, KS to select the granite color I wanted. I preferred white cabinets, but that would have cost me $1000 extra. The counter tops had to be lighter than the finish of the cabinets and in this case closer to a beige I'd selected for the tile flooring. I didn't take any pictures, but will have them once they cabinets and counter are installed.

    This build is estimated to run $171,000 or about $90 per sq. ft. I think I'm over that a bit and will end up at ~$100 per sq. ft. 

  • Shawnee Mission, KS · Member since 2016 · 719 posts · 313 votes
    6y

    Is that mainly oil money down there in Chanute ?

  • Specialist · Wichita, KS · Member since 2020 · 7 posts · 48 votes
    6y

    @Bernie Neyer

    Hello Bernie,

    Thanks for sharing. If you don’t mind I’d love to hear your final build numbers when available. I’ve been compiling some new build costs around Wichita to see how effective a build and hold approach might be.

  • Bernie NeyerPro Member
    OP
    Investor · Chanute, KS · Member since 2016 · 160 posts · 60 votes
    6y

    @Billy Smith

    Not at $30 a barrel it ain't. Oil died here when it fell below $70 a barrel. There is some NG, but they're living off of already developed fields as at these prices there is no exploration.

  • Bernie NeyerPro Member
    OP
    Investor · Chanute, KS · Member since 2016 · 160 posts · 60 votes
    6y

    @Joey Copper

    It's estimated at $90 a sq ft., but I'm exceeding that I'm sure. A little here, a little there and bang you've blown your budget.

    My problem is that when I'm rehabbing a house here, "I'M" doing the work as I don't generally use contractors. Many of the so called contractors here couldn't build a dog house.

    I had one house that needed a roof, but had an addition that was flat. Since they were having to re-deck it, I figured they could just throw some rafters up and deck over them. 4 contractors couldn't give me a price, much less knew how to do it.

    I didn't figure the roofers would do it as they just roof, but here in Chanute, these old houses need decking. All I wanted the contractor to do, was once it was stripped, put the rafters up while the roofing crew worked the other side of the house.

    One guy actually was there when the roofing company was estimating the job, and the contractor asked the roofing agent how to do it. These contractors are from outside of Chanute.

  • Shawnee Mission, KS · Member since 2016 · 719 posts · 313 votes
    6y

    Yes I know about the  price of oil, brother worked in the geology side of the business  ,the big boys can ride it small operation will fold up shop .

  • Johnny McKeonPro Member
    Rental Property Investor · Mesa, AZ · Member since 2016 · 103 posts · 72 votes
    6y

    @Bernie Neyer

    Thanks for sharing your progress of your new build duplex and the pictures. It's unquestionably supportive in getting a grasp on how new construction works.

    How did you know before hand that you'd be spending approximately $90 per sq ft to build? 

    Who did you speak to to get that number? 

    and is that including the land also?

    Thanks Bernie!

  • Bernie NeyerPro Member
    OP
    Investor · Chanute, KS · Member since 2016 · 160 posts · 60 votes
    6y

    The contractor did the estimate. Since it was from ground up and they've done this before, they have an idea of costs.

    Now, some of their estimates were off some. For instance, the termite pre treatment went up significantly. 

    The cement contractor made some errors that will ultimately cost me some. Some of the errors are not really wrong, but will cost me money to deal with. They got the foundation a little too high and a lot more dirt will be needed for grading.

    As for the land, no one can really afford to build here and if they can they build in the snob section of town.

    The city itself built an addition for ~$85K a lot and generally gives them away if you'll build a $200K house on the lot.

    The city commissioners have been on a terror for decades trying to coerce people to keep their houses in livable condition or they tear them down.

    Here in Kansas they levy the tear down charges as a property tax, which the land owner just walks away from since they can't put anything on the land. It ends up at a tax sale where I pick them up for $1 per lot, plus $49 to register them.

    I had wanted to build some domes on them, but the city created an ordinance that essentially keeps me from building them. These are neat little houses. Take a look.

    www.domeliving.com

    www.innplacebrenham.com

  • Investor · Wichita, KS · Member since 2015 · 769 posts · 279 votes
    6y

    @Bernie Neyer they have some of those domes in Arlington KS where my buddy lives - not much going on there - but they are ugly - I can understand why the city didnt want them in town.

    I'm surprised you can't get your costs down - but then again small town prices are way higher on trades and supplies than say Wichita for example.  I've found that out here in Topeka as we are planning a massive remodel and adding on about 2k sq ft to the dink of a house we live in.   I've about pulled my hair out with the contractors or getting any to give me bids.   

    Are you buying and sourcing the big ticket items like cabinets, millwork, doors, windows, light fixtures etc yourself?  Or is the GC doing so for you?

    ****Thanks for the progress photos and real world numbers -- I'm horrible at showing progress pictorially on things I've done.

  • Bernie NeyerPro Member
    OP
    Investor · Chanute, KS · Member since 2016 · 160 posts · 60 votes
    6y

    @Shane H.

    I like the domes. You should look at Monolithic's site. They have some very attractive domes. They are tornado proof, termite proof, hurricane proof, earthquake proof, fire proof and if taken care of, can be easily last 500 years. I'd bet none of the stick built houses will.

    From an investment stand point, you don't need insurance if purchased outright. There is little to no CapEx. While you do need to take care of the air form that remains on the dome, painting is sufficient, but stucco or Dryvit would provide a longer-term resolution.

    The GC arranged the subs and are generally pretty reasonable. None are from Chanute. A couple are from Missouri, midway between Pittsburg and Joplin.

    The cabinets are made in Pittsburg and by comparison are very inexpensive. Two sides Knotty Alder Early American finish, white costs extra, with granite countertops, less than $9K.

    I have a hard time getting quotes out of any contractor here, simply because they don't have the experience to know what's required. Roofers are the exception.

  • Bernie NeyerPro Member
    OP
    Investor · Chanute, KS · Member since 2016 · 160 posts · 60 votes
    6y

    Updated pictures. The framers got the interior framing done, but we're slow getting the trusses set and the roof panels on. The subs help showed up late, apparently hung over and weren't doing their job. He was having to get on them about continually taking breaks, so when they went to lunch they never returned. This will delay their proscribed work a day or two, but is supposed to be completed by this Saturday, June 27th.

  • Rental Property Investor · Montreal, QC · Member since 2020 · 2 posts · 0 votes
    6y

    Hi Bernie,

    Thanks so much for sharing. I am currently interested in buying a multifamily made with structural insulated panels (SIPs) in the South - Georgia or Florida, the price is around 100-120$ per sqft.

    Are there any cons for this type of construction ?Is there anything special I need to verify/double check or be careful during the process using this type of construction ?

    First time I hear about this.

    Thank you so much in advance for your response.


  • Bernie NeyerPro Member
    OP
    Investor · Chanute, KS · Member since 2016 · 160 posts · 60 votes
    6y

    Updated pictures. The framers got the interior framing done, but we're slow getting the trusses set and the roof panels on. The subs help showed up late, apparently hung over and weren't doing their job. He was having to get on them about continually taking breaks, so when they went to lunch they never returned. This will delay their proscribed work a day or two, but is supposed to be completed by this Saturday, June 27th.

  • Bernie NeyerPro Member
    OP
    Investor · Chanute, KS · Member since 2016 · 160 posts · 60 votes
    6y

    Think I hit the wrong button.

    There hasn't been much going on out of the usual build stuff. They have the cabinets in and tile done on one side. Pictures are included.

    We'll be pouring a parking area at the rear, but the plumber needs to trench some and they need to bring in dirt first.

  • Bernie NeyerPro Member
    OP
    Investor · Chanute, KS · Member since 2016 · 160 posts · 60 votes
    5y

    Just about ready to go. Having some HVAC installation issues that will be resolved and some dirt work.

  • Bernie NeyerPro Member
    OP
    Investor · Chanute, KS · Member since 2016 · 160 posts · 60 votes
    5y

    Well, I have both sides rented. One side is a short term rental to some laborers working on a windmill farm south of here. They will probably only be here for 5 to 6 months. It is sort of an Air Bnb. The other side is rented to an elderly woman, my banker's in law. They moved her here from an hour away so they could help her as she needed. 

    I'm actually looking into a building some 4-plexes in Pittsburg, KS close to the university. I have a lead on a couple of empty lots within walking distance from the college. I'll post my progress in this forum. 

    If anyone has any questions, please feel free to contact me directly on BP. 

  • Investor · Bentonville, AR · Member since 2014 · 759 posts · 379 votes
    5y

    @Bernie Neyer you should chat with @Tyler Casey regarding your Pittsburg action.

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