The Walls Are Closing In!

Posted on December 5, 2011 by BeatingUpwind

Keeping up with the renovation has been a full time job lately so my blogging has suffered a bit as a result. There are just so many decisions to make as the contractor is back working full steam ahead now that the house is secure. We’re down to making decisions about finished materials, etc.

Drywall

One welcome development is that drywall started going up a week or so ago. Insulation will be going in soon and the sound insulation in the interior walls will be unfaced and so it needed drywall on one side of the wall to hold it in place. Here’s a few shots of our walls “closing in”…

The character of the stairwell changed a lot once it got four defined walls. I wouldn’t say it’s worse – it’s now it’s own defined space… I should mention that when it’s all done it will be all white – except the exposed brick wall, the old joists we’re reusing between the hallway and the stairs, and the wood floors / stair treads. The steel will be painted white, the walls will be an off-white, and the plexiglass panels on the sides of the stairs will also be white. So it’s got a ways go go – but it’s starting to take shape.

The picture above is the den. It will have a clerestory window at the top of that wall to let a little light in. The room above it will get flooded with light but with the den there will be much less light since the light has to bounce around the stairwell to reach the den.

Doors

The other reason why the house is feeling more complete and defined is because many of the interior doors have been installed…

What you see above is a pocket door (to the left) and a bathroom door (to the right). There’s a delay on the doors in the stairwell ’cause they need to have a 45 min fire rating which requires special fire-treated wood for the frames. (Metal frames wouldn’t work with the aesthetic we’re shooting for).

In case you’re wondering, we debated it and decided to go with painted doors instead of wood doors. They should be less expensive – though priming and painting is nearly as expensive the upgrade for the wood laminate. One thing we are doing is using solid core doors throughout the house – usually 1 3/4″ thick. Only on closets do we go down to 1 3/8″. So the doors will feel nice and solid.

The Reveals

We’re not going to have window and door mouldings in the house. Instead we’ll have thin reveals around windows and doors, and above the baseboard (which will be flush with the drywall). It’s less material, but more work… And the Z-Beads you need for the reveals are apparently rather expensive.

In the picture above you can see two reveals – one just below the window, and one just above the baseboard. The baseboard looks like more drywall, but it’s not – it’s primed wood. Since we’ll paint the baseboard the same color as the walls (though a bit glossier) the effect will be that we don’t have a baseboard even though we do have one. The reveals will also be painted – they won’t remain the metallic color.

You can also see that they’ve been working on the plumbing for the rads. The copper pipe sticking up through the floor is radiator piping. The boiler got delivered today, so hopefully we’ll have heat soon.

European Fixtures

The radiators remind me… What’s a little funny is the amount of European fixtures we’re installing… The rads are from Switzerland (Runtal), the sinks in our bathrooms are from Italy (Lacava), our plumbing fixtures are from Germany (Grohe + Bosh dishwasher), our windows are Austrian (Gaulhofer), the stairwell lights are Italian (Luce Plan)… And it’s not just the high-end stuff. Our Ikea cabinets are Swedish. And when I bought Electrolux appliances I thought I was going with an American company, but then a friend pointed out that Electrolux is also Swedish. However, if we had a bigger budget we would have gotten Wolf & Sub-Zero – which are American. Even the firewood we’ve been getting (from multiple sources) comes from Europe – that one makes no sense to me at all…

There are some American things going in – plumbing fixtures for the rental are American Standard, our tub and kitchen sinks are Kohler, the boiler (Slant/Fin) and water heaters (AO Smith) will be American, much of the lighting will be American (Juno, Lutron), etc. But the overwhelming trend is European. The question is why don’t more American companies have products that appeal to people like us? It’s not like we’re trying to buy European – it’s just seems to work out that way.

UPDATE

A day or so after I wrote the blog post another wall closed in – the one around the fireplace. It looks very different now – more like a real fireplace…

The objective it to cover that with limestone.

Continuing Progress

Posted on November 22, 2011 by BeatingUpwind

It’s been a busy couple of weeks and lots of progress has been made, but there’s not a whole lot of pictures to show for it…

The plumber’s been busy replacing/repairing the damage done by the thieves. The electrician has been finalizing the wiring, putting in the rough-ins for recessed lights, etc. The contractors’ guys have been finishing off the front façade and working on the carpentry around the windows. They also installed the front doors – though work still needs to be done on them (see pic to the side). The security guys started putting in the alarm system.

There’s also been a lot of activity finalizing quotes from subs. We found a closed cell foam specialist from Connecticut who came in much lower than the NYC-based insulation sub. We’ve nailed down most of the details with the iron work sub – and really like their solution for the security gates – it’ll look much more authentic than what we had planned – they’re going to hand fabricate gates out of wavy thin bars rather than use pre-cast panels.

Hopefully we’ll have pictures of a completed façade soon (though the stoop is still on the to-do list). If things stay on track, insulation will go in the first week of December. After that it’s all downhill – the walls will get closed in right after the insulation then it’s “just” painting, floors, tiling, trim work, and final fixtures. It feels like it really could get done sometime in January – though we’ll have to wait until about March when it gets warm again to finish off the stoop – but that sorta has to be done last so the workers traipsing in and out of the house don’t destroy the finish on the stair treads.

We also went to Ikea this past weekend and purchased the kitchens before their 20% sale ended (saved over $2,000), and went to Brooklyn and saw our favorite appliance guy (Irv @ Drimmers) and got all the appliances figured out.

It’s all finally falling into place… It feels good to see everything coming together. 🙂 I just can’t wait for it to be done – the whole process is rather exhausting…

The Security System Goes In

Posted on November 22, 2011 by BeatingUpwind

This past Friday we finally got an alarm system in, but it’s not complete, so we’re still staying there. The security sub contractor will be back on Wednesday – at that point we’ll have break/shock/open sensors on all accessible windows and doors. There are also motion detectors in strategic locations. And we’re putting sirens inside and out. I want to wake up the neighbors if we’re getting robbed 😉 On top of all that we’re putting redundant smoke detectors in that are tied into the security monitoring company – so they know if a fire is happening in the house, and there will be a flood sensor in the cellar in case the sewer backs up.

The shock sensors are sorta cool. If someone even bangs into the window the alarm will go off – they don’t have to break the window. Given that we have “smash proof” glass on many of our accessible windows – that works well. And one shock sensor can cover a bunch of windows. Apparently it even senses shocks elsewhere in the house – say if you drop a glass and break it.

There’s also security cameras all over the house. Four are in already and when we’re done there will be a total of seven cameras – three on the front, two on the back and two on the roof. They’re infrared / see-in-the-dark cameras. Here’s a shot of the monitor screen taken after dark…

You can see a lot more detail when you stand next to the monitor – the picture doesn’t do it justice. But what you see there is that the cameras go into infrared mode at dark – the grayscale images. The back yard has so much light from the lights on the building next door that it stays in daytime/color mode. It’s sorta amazing how much detail you can see even at night – the infrared really works well.

It’s a DVR system, so the other night the outside motion sensor went off and I was able to go to the monitoring system and look at what was going on just before the alarm went off. Turns out a rat got into the garbage and the movement of the rat set off the alarm. It was sorta funny – the infrared camera picked up his beady little eyes…

The other cool thing is that we can see the cameras using an app on our iPhones and iPads. So when Dan is there at night he brings up the app on his iPad and when a motion sensor goes off, the first thing he does is start up his iPad and see what’s going on – but we can do that when we’re away from the house as well. We can also share access to the cameras with neighbors and even NYPD (if they want to see what’s going on).

The one sorta stupid thing about the security system is how it communicates to the monitoring company – it requires a phone call. We have Internet access in the house now, but Honeywell hasn’t come up with an Internet-based protocol for security systems, which is completely lame – it’s 2011 already – everything else is Internet-based. So I figured I’d get another Vonage box – but no – that’s not sufficient – the Vonage signal isn’t strong enough. You either need to go with Verizon or Time Warner – that adds at least $30/mo to the cost. HOWEVER, there’s a cellular option you can choose – costs about $300 – and it has no (additional) monthly fee. So that’s what we’re going with. Unfortunately – two units = two cellular antennas – the units can’t share an antenna.

They say your house is your castle. I never really thought about it until now – but castles need defenses – and that’s where the security system comes into play. Since moving to NYC I’ve always lived in apartment buildings and never really gave too much thought to security. The robberies a few weeks ago changed that but the security system levels the playing field.

Camping In Harlem

Posted on November 22, 2011 by BeatingUpwind

The past few weeks have been pretty trying, which is why I haven’t done much blogging… Our job site got robbed at least twice in less than a week about 3 weeks ago now. The thieves ripped out installed copper pipes and caused about $4500 in damage (and that number is with the plumber being charitable and giving us a great price to fix the damage).

When it first happened we didn’t have electricity and hence didn’t have an alarm system. The only option to stop the robberies was a physical presence at the house. After the first robbery the contractor paid one of the guys on the block to look after the house, but then a day later we were robbed again. As they say, if you want it done right, do it yourself… So Dan and I started camping in the house. I jokingly called it “Occupy Harlem”.

This has been our life for two and a half weeks now…

The place is filthy, so we put down a tarp to try to have a semi clean area to put the air mattress. The first few nights got down to about 34/35 degrees. I had brought a down comforter but that wasn’t enough. What I didn’t realize is that cold air would come up from below. After a few cold nights we started putting blankets under us as well as over us and that helped a lot. It’s also helped that most nights haven’t been that cold.

The first few nights were a bit spooky. Robberies had just happened and we didn’t know if they thieves would be back. After a night or two the contractor put up Home Depot motion sensors from and back so we knew if anyone jumped over the construction fence or got into the back yard. Problem is, a cat set off the alarm one time. Another time a “big ass raccoon” (to quote a neighbor) set off the front alarm, and I’ve also had rats set off the alarm as well as wind blow things and set it off. One time Dan saw some 20-something kids run off after it went off – not sure if they were trying to get in or just didn’t want to be around when alarms were going off.

What is nice is that we have a fire going in the fireplace when we’re there… It’s sorta peaceful. A few friends have stopped by, hung out and had beer & bourbon with us – that’s been fun…

All in all though staying at the house is exhausting – we just don’t sleep right when we’re there. Dan and I alternate most nights so one of us can get a proper night’s sleep at home in a real bed.

We’ll stop camping there when the security system is completely in. This past Friday the first part got installed, and after Wednesday it will be 95% complete. I’ll do another blog post on just the security system, but after Wednesday if someone tries to rob us we’ll catch them on camera and the police will get called. We’ll probably continue to spend the odd night there until security gates are on all the ground floor doors and windows. At that point we’ll be pretty impenetrable – gates on the rental and “smash proof” glass on our windows.

Cash Flow Issues With Rehab Loans

Posted on November 12, 2011 by BeatingUpwind

There’s an inherent problem with rehab loans which means the contractor is more likely than not to run into cash flow problems…

With a rehab loan there is no payment until the work is done. And even then 10% is held back until the end of the project. The holdback protects the bank and the home owner, but it creates a difficult scenario for the contractor. The 10% is supposed to be his profit and holding it is supposed to be leverage to make sure he stays around and completes the project. But if problems arise the holdback could mean that he doesn’t have the cash flow to keep the project progressing. Deadlines can be missed, and costs can start piling up.

With most contracting arrangements the contractor gets a deposit at the beginning of the project and that deposit is his cash reserve to help him get through the project since he’ll need to pay for certain things in advance. Thing is, with a rehab loan there is no deposit. This means you need to make sure going into contract that your contractor has a substantial amount of cash in his bank accounts and/or that he has good credit and access to substantial lines of credit. If you’re financing part of your renovation in cash you may be asked to give a deposit on the entire job – not just the portion you’re doing in cash.

One significant risk is if line items come in over budget. In that case the amount over budget will come directly out of your contractor’s available cash and could create cash flow problems.

Another potential problem is if your contractor needs money to cover losses on other jobs or if he didn’t pad the numbers enough to have money to cover G&A items like insurance. In both of those cases his available cash will get depleted and he will start having cash flow problems.

If you ask your contractor to bond the job (ensuring that sub-contractors are paid for their work and don’t put liens on your property) – the bond money will also eat away at available cash. But, contractors who have the cash to bond jobs probably have cash they need to keep the job on track.

When the contractor’s cash flow starts getting tighter you’ll start seeing progress on your job slow down. And the slower it goes the worse the problem becomes since fixed costs are still incurred even though work isn’t getting done. Gradually the contractor can dig himself into a pretty deep hole.

Finances and managing money are a big part of contracting – contracting is far more than just doing good work. The ideal contractor will have a “money guy” who will watch the budget and the cash flow like a hawk and make the contractor stay on budget. If you’re selecting a contractor make sure there’s a money guy that’s part of his team – that could be a construction manager (a “CM”) or it could be a project accountant. Stay away from any contractor who doesn’t have a money guy as a senior member of his team.

Rehabbing a place is difficult enough even when everything goes smoothly. But it can quickly turn into a nightmare if your contractor has financial problems.