We have a cat running around the Box Bend ranch known as, "Hazel." We got Hazel from the shelter long before we started the project on Hazel Street. However, every time we look at "Hazel," we are reminded that we should post an update on Hazel.
Well, today is February 1st, and substantial action towards the new construction on Hazel should be happening now. The lot should be ready for footings and foundations and the house should start to come out of the ground like Seth's pillars in Siriad. (This obscure reference brought to you by another blog we do on the side.) We are looking for an end of April competition on our little 1,583 SF cottage with garage. This is an aggressive schedule, but it is in line with what our contractor and our CM has been telling us. Time will tell.
In addition, we are considering two other flip candidates out of our list of five that grew to around 12 candidates over the weekend. One of the two candidates is a ten month project -no kidding. So, that means if we do that one, the hustle time frame would put us into January of next year, but the payoff should be large. We never want to count our chickens before they are hatched, or our projects profits before they are in the bank, but do want to mention that this kind of long term planning is sometimes necessary if one plans to move their business forward.
The other candidate is a substantially quicker renovation, but has a much smaller profit potential. This is the great dilemma. But, by and large, we prefer quick and fast. However, and not to contradict ourselves, the longer project has the potential to create real value and take our game to a higher level. So...
All of this to say that we would like to do two to four new builds this year and at least one more transformation/renovation -quick or slow. Should we manage to do those projects, we should be sitting well-poised for the next cycle that is coming down the pike. If we can get the Hazel Street project done and down the road in short order (possibly a pre-sell type of scenario) we should be able to get the next house (after Hazel) out of the ground and down the road by early fall. Depending upon economics, and as possibly stated in an earlier post, we would like to get two new builds going at once at some point. However, we have to dance lightly because cash flow management has a way of stepping all over one's shoes.
Side note here: We have an additional undeveloped lot on Hazel that is prime for a small one or two bed cottage in the shotgun style of the Deep South. We also have one other lot that we have been holding in reserve. Carrying costs right now are mostly centered around lawn cutting and that sort of thing. So, in another 3 or 4 weeks, we should see those "mowers" starting up.
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