PROJECT TYPE: Value Add / BRRRR
ADDRESS: 2233 Southwest 25th Street Oklahoma City, OK 73108
CLIENT: Out of State Investor
SQUARE FOOTAGE: 1830
This project was one we did for one of our favorite clients. We did this project before we brought property management in house so most of the lessons learned were around the best way to bring property management into the development process early on (without muddying the process). This project had very few variances in budget, timeline, and target numbers so we spent a fair amount of time assessing what allowed that to happen. This project was successful because of proper planning (we had a clear understanding of objectives, budget, and the client’s end goal). Very importantly, the client was very responsive throughout the process and was able to make quick decisions.
Below is a list of change orders which impacted the total budget and the solution our team put in place to prevent this from happening next time.
Change Order 1: Gas Pressure Check and Line Replacement
Solution: Moving forward, we will call ONG ask if the property has been without service. Our local investors turn on their utilities, so setting that up was a first for us. Even if we knew a test would be required, we wouldn’t have known about required repairs.
Change Order 2: Bedroom
Solution: See below.
Change Order 3: Fence
Solution: This was added at the suggestion of the property manager when it was time to lease. Now we have the property manager at the final walk through (if the property management company is a third party) or us a checklist of items to consider (if property management is in house). This has helped curb some of these “after the fact” decisions
The project timeline mostly went as planned. When we called to set up utilities we learned that the gas had been shut off for 2+ years. Consequently, we were required to perform a gas pressure test and make a few minor repairs. This test and final inspecion added a week to the final timeline.
This property is located in south Oklahoma City. The property is conveniently located right off a major highway making it easy to commute to most major employers. The property’s close proximity to downtown OKC, the airport, and the new Amazon Fulfillment Center make the location highly desirable to tenants and property oweners alike.
Address: 2233 Southwest 25th Street Oklahoma City, OK 73108
Neighborhood Class: C+
Closest Highway: I-44