Thursday, October 22, 2020

The Big Pause

As the 10 year anniversary of SoPo Cottage approaches, it seems odd that we will hit the 'pause' button.  I started this business because I love renovating old houses.  I love taking an awkward layout and turning it into a floor plan that works for today's lifestyle - while maintaining the antique charm and uniqueness of the house.  I love fixing the safety issues and lousy energy hogs that cost too much money and are bad for the planet.  I love working with a team of skilled craftsman to create something beautiful.



But it might be time to take a break.  Why?  Well there are 3 issues.  First, there are some new building code changes and ordinances that will likely cripple my business model.  New energy and ventilation regulations will add more costs, while also requiring dramatic changes to the exterior of a home.  Later next year, the city will require sprinkler systems be installed - which adds around $30,000 to the cost of the project.  And now houses built before 1942 need a 90 day review by the historical and architectural review board, adding new challenges to timelines. 

Thanks to COVID and tariffs, lumber costs are up 120% with large percentage increases across most other products as well.  That's a staggering increase and you can add long lead times as well.


And then there is the unprecedented cost increase in real estate.  When I run the numbers on a new project, it quickly becomes apparent that it could be a money losing proposition.  My profit margins are much smaller than most flippers.  As a recent appraiser pointed out, I just put too much money into these houses.  I do it because I want the home to be the best that it can be.  Yet as much as I love this work, I need to make a small profit.
 

So for now I guess I'll hit the pause button.  I'm a bit terrified.  I'm a workaholic by nature and have no idea what I'll do every day.  I may continue to update this blog and social media periodically.  But in the meantime I'll just do some thinking if there is something else I want to do when I grow up (and I do owe you all the before and after pics of the ranch).  And hopefully some perfect project will come on the market that will make logical business sense.
 

Thanks so much to all of you for following along as we've renovated 17 houses.  Your support, comments and advice have been a great source of energy and motivation.  And hopefully in return you've gotten a bit of inspiration or ideas for what you can do in your own home.  

I hope the adventures will start again soon.  But for now, it's probably time to step back.  But I promise to get Romancing the Ranch Before & After photos out soon!

All the best,

Laurel

Pin It

19 comments:

  1. Would you be able to offer some consultation on a project that I am considering? I can’t tell if it would be possible to turn the barn into a home within the price range that I needed to fall.

    ReplyDelete
  2. No one expects you to run a charity, so more power to you. Sad, though! Would love to see more of your personal home, that house is amazing!

    ReplyDelete
  3. I have a couple of questions, and one hope. Question #1: do the regulations apply to you as a rehabber, or would they also apply to any homeowner buying a house and renovating it? Question #2: Is it a sellers market there the way it is in other rural and suburban areas? (I live in Vermont and there's a real shortage of nice properties on the market.) Finally, I have a hope that someone with a house to sell gets in touch with you directly before engaging a realtor. The profit margins might work out better in a private sale.

    ReplyDelete
    Replies
    1. The regulations apply to anyone doing a major renovation. And it is a huge sellers market right now’.

      Delete
    2. Laurel...I would think consulting could keep you very busy and perhaps even offer new challenges without the investment. Let us know if you are willing to help us with our challenges.

      Delete
  4. Sad to read this update. We live following your adventures and learn so much that helps us in our renovation projects! Would you consider widening your areas to include places (rural?) with less regulations and lower prices. I mean, South Portland must be almost as hot a market as Portland by now

    ReplyDelete
  5. This news makes me sad! I've recently discovered your website (about a year ago) and I've so enjoyed following the progress of the Ranch as well as reading through your older posts and looking at all the pretty pictures! I love how you give a glimpse into what a major home renovation really looks like - it's not quick, easy, or cheap, and seeing your work helps me feel better about my own, much slower progress on my home.
    I don't know anything about home renovation code and requirements, but what you describe sounds nuts! I hate all the legal red tape!
    Thank you for contributing something beautiful to your community and the online community! I second the motion: I'd love to see more photos of your own home

    ReplyDelete
  6. I love the work you do and always enjoy following your projects. My husband does some house flipping on the side and realized the same- the costs of supplies has gone up so much that the profit margins have been greatly affected.
    You have an amazing eye- I especially love the changes you’ve made on exteriors. Would love to see what direction you head in. Best of luck!

    ReplyDelete
  7. So sorry that you sre being priced out of the market. I have enjoyed reading about your adventures, and of course meeting you in person and touring the Mid Mod. I wish you the very best, whatever happens, but will miss you!

    ReplyDelete
  8. I hate this is happening to you. But I totally understand your dilemma. I love what you've done.

    ReplyDelete
  9. Please keep us posted with your next steps. Your vision and decorating eye are exceptional. You are an inspiration for me. Wishing you good luck in your next chapter.

    ReplyDelete
  10. I am so sorry that you won't be doing your blog anymore. I always look forward to seeing your progress from week to week and I've learned a few things as well. The homes always turn out so beautiful. I wish you success in your next endeavors. Perhaps a future publication of a coffee table book featuring your renovations!

    Kathy

    ReplyDelete
  11. I will miss you! You are my favorite remodeling blog!! Best wishes!

    ReplyDelete
  12. Enjoy the pause! You have been as thoughtful with this decision as you have been w the house renovations. I look forward to seeing your next act. Perhaps a book?

    ReplyDelete
  13. I'm sooo sad to hear this. Yours is one of the few blogs that I read through thoroughly and enjoy seeing the progress on your houses because I always LOVE the results. Good luck to you!

    ReplyDelete
  14. Thanks so much everyone for the kind words! I truly appreciate it.
    I’m always an optimist, so remain hopeful some property will pop up that makes financial sense. But in the meantime, I’ll take a little time off and drive my husband crazy 😂😂

    ReplyDelete
  15. I am a fairly recent fan- and have now seen all of your houses. I love your ability to move things around to make a space work better. Perhaps you could Consult? I am sure many would LOVE your assistance in trying to make their homes live better. So many like myself feel stuck with houses with interiors that make no sense, yet lack the ability to see other options!Also love your Decorating style.

    ReplyDelete
  16. Very disappointed there won't be new remodels in the near future, as I absolutely LOVE the work you do, but I totally understand. You can't give away your work, much less take a loss. I'm not a bit surprised that your costs are more than the average rehabber, as you're putting quality materials in each and every house. You are not one to cut corners. You could move to South Dakota and work! :) It's also a seller's market here, but there are buys to be found, and we don't have the building ordinances and code restrictions that you do in Maine. Best wishes to you!!

    ReplyDelete
  17. I am so sorry to hear this, Laurel, as I have loved your work! It's been so nice to see rehabs of vintage properties that keep the 'soul' of the house and don't just gut it out the way so many do. As someone who lives in an area where property prices are surging and bidding wars can drive prices up to $100,000 over asking (Crazy!!), I can definitely see the challenges involved in being able to procure a property in a frantic market, even without the new local building requirements you now have to work with. Blessings to you! I'm confident you'll be able to determine the next right step as you move forward, and I look forward to seeing what the future brings for you!

    ReplyDelete

Related Posts Plugin for WordPress, Blogger...