Diary of a New Construction Project

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Diary of a New Construction Project

Joshua D.Pro Member
BiggerPockets Founder · HI · Member since 2008 · 16k+ posts · 5k+ votes

Back in March 2013, BiggerPockets and J Scott collaborated to release two books -- The Book on Flipping Houses and The Book on Estimating Rehab Costs (check them out here if you haven't already). As part of the book package, J was planning to do a detailed case study of one of his renovations (even more detailed than he does for most of his projects on his blog). We decided that instead of doing a case study only for those who purchased the books, he'd instead do one publicly here on BiggerPockets.

In this thread, J is going to provide a practically day-by-day diary of his first new construction project, from acquisition through sale -- including pictures, spreadsheets, invoices, bids, etc.

We hope you find this valuable! I know that I'm planning on following it closely so I can pick up a thing or two.

1/5/14 Update: The project is complete . . . read on!

2/19/14 Update: We've taken all the content of this thread and converted it into a free ebook for everyone who may be interested. Get your copy here: Diary of a New Construction Project Ebook

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J ScottPro Member
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Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
13y

INTRODUCTION

I'm currently working on my first new construction project in downtown Atlanta (with a partner). While we both have a lot of residential rehab experience under our belts (over 100 projects between us), we have absolutely no new construction experience. The purpose of this thread is to chronicle in as much detail as I can, the process of acquiring an existing house, tearing it down, designing a new house, getting permits, construction of the new residence and finally the staging/listing/sale of the house.

My hope is that this thread will end up being part case study, part diary and (if I don't screw up too badly), part textbook. I plan to provide links to everything that might be useful throughout the process -- pictures, videos, budgets, schedules, plans/drawings, contractor bids, invoices, etc. And if there's anything I don't provide that you want to see, just let me know.

As of this writing, I'm currently about 4 months into this project, but we haven't even started to build yet (you'll see why as we move through the thread). I'm planning to start at the beginning (I've been keeping copious notes), and over the next couple months, I'll try to post updates at least several days per week, and hopefully catch up to real time by the end of the project.

Lastly, I hope this thread will be interactive. There are a lot of BP contributors with new construction experience (Rich Weese, @Karen Margrave, Aaron McGinnis and many others). I hope they'll jump in and provide insight, and I hope others with less experience will ask questions and help us all learn from one another. And again, if there's anything you want me to provide in this thread that I'm not already providing, feel free to ask!

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  • J ScottPro Member
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    Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
    13y
    Originally posted by Jon Klaus:
    Does the city arborist have to approve the free trimming?

    Shhhhh...don't say that too loud...

    I don't know, and I'm hoping the answer is no... :-)

    In all seriousness, I'm guessing not. We're not doing anything that will risk the tree dying, and while I imagine the arborist probably would have wanted to see it on the site plan, I can't imagine we'll get charged a recompense or get fined.

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  • Jon Klaus
    Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes
    13y

    I think Austin is more religious about their trees than almost any other city off the left coast. On a 19" or greater diameter trunk, we'd need a sign off.

    0Reply
  • Bryan Hancock
    Investor · Round Rock, TX · Member since 2010 · 8k+ posts · 4k+ votes
    13y

    Our group affectionately calls the tree czar "Radagast" in Austin. You can suffer some heavy fines being inhumane to tree in Austin....ya know....they have feelings and all :-? We actually have to get topography AND tree surveys for anything within the McMansion zone in Austin, which is basically all the most profitable real estate areas.

    You may want to check into it J to save yourself grief later on if someone finds out or complains.

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  • Gabe Larkin
    Real Estate Investor · Lagrange, GA · Member since 2012 · 18 posts · 6 votes
    13y

    http://www.atlantaga.gov/modules/showdocument.aspx?documentid=1538

    Here is a link to the Arbortist Division's FAQ.

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  • J ScottPro Member
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    Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
    13y

    Thanks Gabe,

    I've been meaning to post that...looks like we're in the clear...

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  • Jon Klaus
    Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes
    13y

    Arborist FAQ linked

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  • J ScottPro Member
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    Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
    13y

    DAY 195: MAJOR MIX-UP

    The framing company showed up today to drop off the framing material. When they arrived, they noticed that a couple of the foundation piers were offset from the rest, something that was added to our foundation design late in the process. They claimed that the material they had was based on the take-offs from the original foundation drawing, not the final drawing, and therefore the materials (including the flooring system) were not right for foundation that was actually there.

    There was some disagreement about whether it was our fault or theirs (our argument was that they were the ones who had suggested the offset pier design, so we assumed the engineer had communicated the change to the guys doing the take-offs), but ultimately, they were cool about the whole thing.

    Unfortunately, it means that framing isn't starting today. They will get us a change order and new material ASAP...hopefully tomorrow or Wednesday. Then they'll get started on the framing by Wednesday or Thursday. This mix-up will end up costing us several days, which is too bad given that the weather is finally cooperating.

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  • Dave Martel
    Electrical Contractor · Vail, CO · Member since 2010 · 40 posts · 10 votes
    13y

    J,
    I noticed your temp service on the last page, are you using an overhead service?

    The reason I ask is if you where going underground sometimes you can mount the permanent equipment to the foundation at the proper location. That way you are using the permanent as the temp saving some money and you won't have any downtime waiting for the power company to change over.

    You probably can't do that with an overhead as it would be too dangerous for the framers/siders. Overheads aren't allowed any more in my area.

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  • Dave Martel
    Electrical Contractor · Vail, CO · Member since 2010 · 40 posts · 10 votes
    13y

    BTW,
    The framers suggested you offset the piers, showed up with the wrong material, and are giving you a change order. That's not very cool.

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  • J ScottPro Member
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    Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
    13y
    Originally posted by Dave Martel:
    BTW,
    The framers suggested you offset the piers, showed up with the wrong material, and are giving you a change order. That's not very cool.

    Actually, it was the engineers that work for the framing company (who provides both labor and material) who suggested the off-set piers. And the change wasn't communicated to the materials side, apparently. So, while it sucks that we lost a couple days, it was an honest mistake. We need to figure out for the future whose responsibility it would be to communicate the change -- us or them.

    The change order resulted in an extra $1300, but supposedly that would have been the true cost based on the revised design -- they didn't charge us extra for having to ship two loads of material and pick one up.

    If we weren't looking to move things forward so quickly, we'd probably put up a bigger fight about the extra cost and the missed communication, but at this point, it's worth the cost to just keep things moving.

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  • J ScottPro Member
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    Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
    13y

    DAYS 196-197: FRAMING MATERIALS

    After the mix-up with the framing materials on Monday, the framing company spent Tuesday and Wednesday getting new framing materials delivered on-site.

    Work is scheduled to start on Thursday, and they're still telling us that they should be able to finish framing by mid-next-week.

    Here are some of the flooring system pieces that got delivered today:

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  • J ScottPro Member
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    Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
    13y

    DAYS 198-199: FRAMING BEGINS

    Thursday and Friday were framing days. The framing crew arrived bright and early on Thursday morning and worked their butts off for two days.

    The progress speaks for itself:

    Framing will continue on Monday and Tuesday of next week, with rough plumbing starting Wednesday, rough electrical starting Thursday and rough HVAC starting Friday. The company that did our framing will jump right into roofing and siding.

    The following week we hope to complete all rough inspections, framing inspection, insulation and insulation inspection, so that we're ready for sheetrock the following week. We'll see if that schedule is realistic... :)

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  • Mike Cartmell
    Residential Real Estate Broker · Colorado Springs, CO · Member since 2008 · 100 posts · 4 votes
    13y

    Can't thank you enough for sticking with this thread J. I love when the framing starts and you actually see the structure coming together. I bet the neighbors are happy.

    0Reply
  • Brandon SturgillBusiness Member
    Real Estate Broker · Columbus, OH · Member since 2013 · 3k+ posts · 1k+ votes
    13y

    Awesome. Thanks for sharing.

    937-979-7000
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  • Jon Klaus
    Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes
    13y

    I never cease to be amazed at how fast the framing goes. Especially in comparison to most other components.

    0Reply
  • Mark Casali
    Real Estate Investor · North Easton, MA · Member since 2013 · 6 posts · 1 vote
    13y

    Nice to get through all the red tape and finally build something! Looks great!

    0Reply
  • Chad Ballard
    Civil Engineer · Orange County, CA · Member since 2012 · 189 posts · 45 votes
    13y

    I loved framing houses. It seems like the project it is taking forever then boom the framers get there and the house goes up. Then back to taking forever to finish up the plumbing, electrical, roofing....

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  • J ScottPro Member
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    Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
    13y

    DAYS 202-204: FRAMING CONTINUES

    Monday through Wednesday of this week we continued framing, sheathing and roof decking, as well as building the front porch. For the most part, all framing is complete, and the framing company will be starting roofing and siding at the end of the week. On the interior, we'll be moving onto plumbing on Thursday, electrical and HVAC on Friday.

    We realized that we hadn't planned for any low voltage wiring (alarm, phone, data, cable), and talking to our electricians, apparently there is a whole separate licensing for that work, which of them hold. We called a few people who are licensed, but the bids were ridiculous ($1500 to run data, phone and alarm lines), so we decided that we'll just install a wireless alarm system (which are very common these days), not install phone lines (nobody should care) and to do data/cable installation as an upgrade for buyers who want it.

    Here are some pics of the framing:

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  • Joe Delia
    Involved In Real Estate · Rochester Hills, MI · Member since 2010 · 812 posts · 178 votes
    13y

    How are you keeping the place safe from vandals at night?

    0Reply
  • J ScottPro Member
    Moderator
    Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
    13y
    Originally posted by Joe Delia:
    How are you keeping the place safe from vandals at night?

    There's nothing in there currently that any typical thief might want. We'll get the doors and windows on before we bring any finishing materials on-site, we'll hold off installing the compressor and coil until we're ready to list, and I imagine we'll use our Lasershield portable alarm at some point until we get a real alarm system in there.

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  • Rob K.
    Investor · Southeast, MI · Member since 2012 · 2k+ posts · 1k+ votes
    13y

    What type of plumbing will you be putting in?

    Shocking that the BIG GOVERNMENT will allow electricians to install high voltage wiring, but not allow them to install cable lines. A 12 year old could literally install cable lines and do it right. What a bummer. It would be nice to have the cable lines inside the walls and out of site.

    1Reply
  • J ScottPro Member
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    Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
    13y
    Originally posted by Rob K:
    What type of plumbing will you be putting in?

    Pex for supply lines, and I assume CPVC for drain lines...

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  • Dawn AnastasiPro Member
    Rental Property Investor · Milwaukee, WI · Member since 2013 · 6k+ posts · 4k+ votes
    13y

    Since you can actually see a "house" now (at least the structure for one), do you have any signs out front such as "Available Soon for Sale, another great home from Lish Properties!" with your contact info?

    Wondering if prices are such that people would be jumping at the chance to own a new construction home like that?

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  • J ScottPro Member
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    Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
    13y
    Originally posted by Dawn A.:
    Since you can actually see a "house" now (at least the structure for one), do you have any signs out front such as "Available Soon for Sale, another great home from Lish Properties!" with your contact info?

    We've had it listed on the MLS since before construction. We've gotten a bunch of interest, but ultimately, most buyers want to see a finished product before they commit to a contract.

    We'll hold off any further marketing until the house is 100% completed and staged...

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  • Michael Stole
    Real Estate Investor · Ottawa, Ontario · Member since 2011 · 217 posts · 14 votes
    13y

    LMAO, I dont think this is what J Scott expected to here.

    Originally posted by Dawn A.:
    I am reading it and it makes me confident that I DON'T want to build a house!
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