We're still here

After at least three months hiatus, I'm being forced to think about the remodeling project by Filco, the oil tank remediation people. I got the boss (Nate Montgomery) to say that they'd be done by the middle of February back in January--it seemed like an easy goal, but of course they've taken all the time.

Henry, the foreman, drives the Volvo Compact Excavator

The hiatus works because the house has been surviving the winter very nicely. The gutters are still clogged, various eave issues still exist, but there is no sign that the roof is leaking. (To be fair, I haven't looked.) I have six electric heaters (two built-in) running to convert the outside temperature of 43-55 into 65-69 inside. I put plastic over a few windows, closed off BR3 and BR2 and it's been okay. The electric bill doubled, but my gut feeling is that it's a win over $1400/year oil (but I haven't even verified that number).

Henry showed up with three big trucks this morning at about 7:20 a.m. (Nate said 8:00 a.m, but I was ready for them.) I'm prepared for "3-5 days" so I expect there will be a hole filling with rain over the weekend. Changes one's attitude about redundant front doors.

The Zestimate on the house is $594,792. I would need to spend $25,000 on a furnace, roof and gutters, perhaps, but if this inflation is true, that's a gross $127,792. I'm out of pocket for the survey, soils report, half the building permit, and structural engineering. The excise tax would be $9,517.

I need to hold it two years, to avoid capital gains, so I can't sell before October 27, 2016. Rather than sell in winter, we're talking about March 2017. The no remodeling scenario, then, is $467 + $12 (plans) + $25 improvements = basis is $504. If I list for $619 and sell for $595 my profit (minus excise) is $81,500. That's a 16% simple return, which is not bad.