Meet our Renovated RV, Birdie

Diana and I always like to have a personal project that we work on together as a hobby. This past couple of years, that personal project has been finding and renovating our RV, Birdie. Many weekends, if I was not showing houses, I was working on renovating Birdie for her big debut. Birdie is a new kind of multi-purpose real estate for me—a house that can we can travel in OR a great stationary rental property for those who want to visit the great city of Austin.

We found Birdie up in Fort Worth one day and by 5 pm, we had driven off the lot with her!  As a side note, this is very much the way that Diana & I operate. We have an idea; we find the right match, and we act on it right away!  We are pretty fast decision makers when we both have the vision and know what we want.

Our first step was to gut the entire inside of the RV. Demo day is always rewarding and fun. It feels great to get rid of the old and make way for the new vision to be accomplished. We also wanted to make sure that the mechanics of the RV were renovated and running properly, so Birdie spent some time in the shop getting all her mechanical systems updated as well.

FROM L TO R CLOCKWISE: THE ORIGINAL INTERIOR OF BIRDIE; DEMO DAY; COMPLETELY GUTTED; I’M PLEASED WITH A LONG DAY OF HARD WORK

Next, it was on to the renovation!  I installed new flooring and reconfigured the water tank system that was housed under the bed.  We also epoxied the shower floor and painted the entire interior. Next, Birdie went to the cabinet maker to get some custom cabinets made for the kitchen.  Once the cabinets were made and installed, we continued with the rest of the kitchen and bedroom install.

TOP L: PREPPING FOR PAINTING; BOTTOM L: SPRAYING PAINT; RIGHT: ALL 3 OF US (BIRDIE, ME, DIANA) COVERED IN PAINT!

TOP L & R: INSTALLING THE FLOORS; BOTTOM: DIANA ENJOYING A JOB WELL DONE!

Why the name Birdie? Because birds live a carefree lifestyle, and they have everything they need to travel wherever they want to go! We hope you love renting Birdie as much as we have loved renovating her! 

TOP: A MAN AND HIS MACHINE! BOTTOM: WEEKEND RENOVATION FUN!

We have recently put the finishing touches on Birdie and she is now in a stationary location and ready for to rent for the night in Austin, TX! You can follow Birdie @Tinkins on Instagram or visit our website to see finished pictures and look into renting Birdie for the night.

IT’S HARD TO BELIEVE THIS IS THE SAME RV!

Part 2 - 33.3% Return on Renovation

If you missed Part 1, click HERE to read about a 46.7% return on renovation of a condo.

As previously mentioned, I have been fortunate to work with sellers who want to maximize their return on their home. In doing so, we put together a plan to renovate their home, then list their property for sale. This approach is risky, takes capital, and patience from the home owners. But in the right urban situation, with the right team, the opportunity can create a ROR (return on renovation) of 30-100%.

A key to this equation is who will do the renovation? My wife, Diana Skellenger, is a female general contractor in Austin. For all my sellers, the only contractor I trust is Diana and her team at skellyhome.com. Skelly Home continues to lead the pack in quality, affordable construction. I must admit, I am on the team, but it's from a high level. :)

The second example is a home in Travis Heights. This home was purchased by the owners in 2005. Before the renovation, the home was worth $600,000 and looked like the following:

For this home, the plan was to renovate the entire home which included a kitchen, 2 bathrooms, wet bar, removing a load bearing pantry (seen in the top left photo), and paint the entire exterior.  The total budget for the renovation was $120,000 with a market price of $825,000. 

Yes, this is the same house. The renovation turned out as expected, outstanding! The home was listed, then sold for net $760,000, earning a return of renovation of 33.3%.

Math:

$760,000 - $600,000 = $160,000 Gross Gain on Renovation

$160,000 (Gross Profit on Renovation) - 120,000 (Renovation Cost) = $40,000 Net Return on Renovation  

$40,000 (Net Return on Renovation) / $120,000 (Renovation Cost) = 33.3% Return on Renovation

The Renovation approach can work with the right team. 

Part 1 - 46.7% Return on Renovation

Typically, your home is your biggest investment. Over time, a home owner not only creates long lasting memories in their home, but also can grow significant equity at the same time. Once you grow out of your home or want to move neighborhoods, it's time to capture that equity or return.

I have been fortunate to work with sellers who want to maximize their return on their home. First, we put together a plan to renovate their home, then list their property for sale. Now, this renovation approach does not fit everyone. It takes risk, capital, and patience from the home owners. But in the right urban situation with the right team, the opportunity can create a ROR (return on renovation) of 30-100%.

A key to this equation is who will do the renovation? My wife, Diana Skellenger, is a female general contractor in Austin. For all my sellers, the only contractor I trust is Diana and her team at skellyhome.com. Skelly Home continues to lead the pack in quality, affordable construction. I must admit, I am on the team, but it's from a high level. :)

Part 1 - Return on Renovation of 46.7%

The first example is a condo. At the time of the sale, the condo was worth $225,000 and looked like the following:

For this space, the plan was to renovate the entire condo which included a kitchen, 2 bathrooms, removing a load bearing wall (adding a column for support) and creating a better storage solution in the current utility room (white pantry next to the kitchen and half bath).  The total budget for the renovation was $75,000 with a market price of $365,000. 

As you can see, the renovation turned out to be amazing. The condo was listed and sold for net $335,000, earning a return of renovation of 46.7%.

Math:

$335,000 - $225,000 = $110,000 Gross Gain on Renovation

$110,000 (Gross Profit on Renovation) - 75,000 (Renovation Cost) = $35,000 Net Return on Renovation  

$35,000 (Net Return on Renovation) / $75,000 (Renovation Cost) = 46.7% Return on Renovation

The Renovation approach can work with the right team.