Friday, November 30, 2007

Atlantic Street

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Thursday, November 8, 2007

26 Galveston Place SW

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Micro Economics Problem:

Tim Cole was the contractor who developed Galveston.  We had an opportunity to use the $20,000 in downpayment and purchase a money market that brought in 8% a year.

We also provided our Dodge Grand Caravan to Tim since he needed it to move lumber and tools.

The van was worth $1500 and we could have easily sold it for that much.

Renovating this building took over ten months.  I could have spent the time to work at the library in the evenings and in the weekends and earned $10,000

Our opportunity cost was $10,000 + $1,600 (interest) + $1,500 (van).

Galveston Place: Serenity Above Discord

Galveston has a spectacular roof deck offering peace and quiet above an area that in the past can get downright dangerously loud and hectic. What is amazing is that the roof pavers which provides a nice walkway around the perimeter of the roof is not physically attached to the roof, but simply floats on the roof.

Here Hector Navez, roofer, who installed the pavers, checks on the stability of the pavers and the rails.

Hector also reflashed the roof around the rails and around the brick structure.

Read the zillow FMV

Friday, November 2, 2007

Monday, October 1, 2007

Atlantic Street Gets a New Kitchen and Tile

This is the open expansive view from upstairs at the "little house on the prairie" on rough, rugged Atlantic Street.

Beside all the violence on the street and in the drug lots scattered throughout the neighborhood, the back end of the house offers a peaceful, serene view of river scenery, streaming water from the Potomac and water lillies and other vegetation along the canal.

This calm and relaxing body of water is Oxon Creek which reaches out to a scenic cove on the Potomac River straddling the border between DC, and Maryland.

So why are we renovating? Because of the splendid view? Because the tenants had just moved out and this was an opportune moment to make drastic improvements on a house that suffered through a fire just two years ago.

Amanda was a great tenant since I purchased the house in 2003 -- even with the small fire in the bedroom and the subsequent smoke damage.

I remember getting the call when I was assigned to Guantanamo Bay -- it was heart wrenching -- especially since there was little I could physicall do.

My Alstate insurance did go up for the next five years.

Insurance is usually purchased in advance.  For Atlantic it was around $750/year.  I purchased two years of insurance.

Prepaid Insurance:     $1500
    Cash:                           $1500

By December 2006, one year of insurance would expire.

Insurance Expense:   $750   (expense)
     Prepaid Insurance:     $750  (asset)

In preparation for our new tenants -- Sabrina, I wanted to renovate the kitchen and tear out the carpet in the living and dining room and install tile.

So we decided to do the following:

1) New countertop
2) New base cabinets
Both items were installed by James Crudup shown here

3) New tile in kitchen
4) New tile in the dining room/bedroom
5) New carpet
6) Electrical work of $250

We decided to install a nice classic tile design using Mexican tera cotta tile from Morris Tile in Hyattsville, Maryland.

We also decided to use this special 18 inch tile in the living room and dining room. Essentially, we were virtually tiling the entire bottom floor. Working with large tile is challenging. It's more difficult to measure and cut. It's also more difficult to make ensure that it is level. But when it's done, here is nothing more spectacular.

Total price for the tile and labor from Alphonso Richardson is $4,279

So now we have a brand new kitchen. I'll be interested to see what it looks like in a year or two after the tenant has stayed in the house for that long.

We also took the opportunity to purchase a new stove at Home Depot for $538.

This was a prepaid expense since I purchased it a month before we needed it.

 It was a Credit cash, Debit Asset.

Finally, James painted the house for $1500.

Credit cash $1500. Debit Accounts Payable $1500.

Accounts Payable    $1500  (current liability)
            Cash                   $1500                     (asset)

An asset is decreased as a credit.
A liability is decreased as a debit.

Interesting that this project required the work of all my contractors. Jeff Bishop helped out with replacing the kitchen piping and venting. He also repaired a hair-line crack in the plumbing. He charged me $2150

Saturday, May 5, 2007

Power Panel Change out to Install Disconnect

Orlando Catana changes out the power panel. Reason was because DCHA Section 8 inspector said that we did not have a main disconnect switch.

Interesting, since there was a lot of drama from the tenant who did not want to cooperate. Orlando had to return a couple of times.

Asset = Liability + Shareholders' Equity

On my ledger, the journal entry was

1) ASSET ACCOUNT: Debit Accounts Payable $500
(It's Accounts Receivable for Orlando)

Then when Orlando completed the work:

It is an asset because I got service out of it.

2) LIABILITY ACCOUNT: Credit Contractor $500