A family converts a decommissioned school into a home and bed-and-breakfast
theglobeandmail.com
theglobeandmail.com
I'd love to go out to random-rural-county and buy 20 acres of land and a school and turn it into a huge home, but then I'd be hours away from where I need to go to make the money to do that.
There's always some other parts of the financial story that never seems to come through in these kinds of articles.
I think it potentially paints a false picture of what it takes to do this. For example, it mentions that the school was listed for $256k, has 10,600 sq ft of space and 8 acres of land. It sounds like a steal and so obvious that only idiots wouldn't think this sounds like a great idea.
But wait, it gets better! They actually only paid $190k for it! Well shit, I should sell my house, quit me job and cash in my 401(k) so I can live the highlife like these folks in my slightly oddball, yet roomy estate.
Sure it was a little bit of a fixer upper, but that's nothing some elbow grease won't fix. Heating bill is $4k/mo? No problem, I'll just bring the kids out and we'll chop wood.
It sounds like for under a quarter million these folks ended up with a little slice of consequence free paradise.
But that's obviously not true.
"After much searching he found a plumber who was willing to make the drive to the south-east corner of the county to help him get the new system running. Loads of insulation and 60 new windows were in place. Suddenly everything came together and they were all blissfully warm."
Okay, so that's like what, $60-100k in windows. $10-15k for a wood pellet boiler they could never install. Probably thousands of dollars in plumber bills (I can't get mine to come out to even look at a sink for anything under a couple hundred dollars). What do you want to bet that the school was packed full of asbestos they had to replace?
It talks about ways they save some money, gardening for vegetables (in those great long Canadian growing seasons) and run a B&B with 3 whole rooms (only in the summer months).
"Last summer, for example, all five of them planted seeds for growing organic corn. When the corn was ripe, the girls earned their own money for new tablets by selling it at a roadside table."
Well isn't that nice. That's a lot of corn. Are they basically just farming the property? 8 acres isn't a lot of land to support commercial farming. Now toss in the expense of farming equipment, seed, etc.
I believe (based on the description in the article), that this is the place https://www.google.com/maps/@43.9341989,-77.1030939,358m/dat...
If so, they lose about 2 acres to the school, the tennis courts, the entrance and the back lot behind the building. From google earth it looks like they have about a quarter acre under cultivation right now...but the sports fields to the West look like they may have something growing. Some googling shows that you can get about $300 per acre for corn with costs of about $250/ac to grow it. So if they put all 6 available acres under cultivation they might get about $300/year in profit. Those poor girls must have been selling corn at that stand for years before they could all get tablets.
Actually it also look like they're planting trees that will eliminate lots of their arable property. That may be what's going on in the old sports fields.
"They have already planted 1,000 trees and aim to plant many more.
“We are treeing the land just as quickly as I can possibly do it,” Mr. Parker says."
Maybe this is a desperate attempt to cut down on the crazy heating bills? Either way, they aren't paying for heating with roadside corn and 3 months of 3 room B&B overflow.
So either they started off wealthy and this is just some kind of "get back to the earth and spend time with our family" early retirement, or they're living in virtual poverty conditions. Wait until they need to spend $100k to reroof that school.
I really wish these kinds of stories would talk more about how these families make ends meet because otherwise it comes off as a little idealistic and even fantastic. These are incredibly expensive fantasies in these stories and I think lots of people believe it's not.
Quote from their blog https://lettersfromthelunchroom.wordpress.com/
And their Toronto house was a former crack den so they probably didn't make millions with selling it.
Here's a radio interview with them as well
http://www.cbc.ca/metromorning/episodes/2015/08/24/school-b-...
Not much more enlightening I'm afraid.
The wife doesn't work (when not running the B&B) at all. So if there's any outside income it's her husband.
Who knows? Maybe they just burned up all their savings renovating this place and live just lean enough to make it work. If so, good for them!
Re-frame it in your mind as if they decided at 40 years old to put their savings and lucky timing in the housing market and invest in a low to no debt 'lifestyle' business.
edit:
A few other notes:
- people plant acres of trees with in-demand wood and then sell the future rights to those trees. Don't have trees growing, can't sell the future right to the trees. This is pretty common, and the author of the article probably felt it was obvious why they were planting a lot of trees.
- kids selling surplus produce at a roadside retail stand are not going to be selling by the bushel/acre. This is a lemonade stand, not a commercial business. The kids are going to have enough cash from their summer operation to buy new tablets or other fun things, but not enough money to survive on.
- 2 tablets - let's say $500 for two. A single piece of corn sells for what, 50 cents? At an expensive supermarket? Let's pretend they convinced everybody in that rural atea to pay urban prices. That means they had to sell 1000 of them, over two months, 15 a day, 7 days a week, from a roadside stall. Yeah, don't see that happening.
As far as timber futures or even the financial side of that business, I admittedly don't know much about. I do know of and see people that plant and maintain several acres explicitly for selling the lot's wood in the future. I assumed that such a time-expensive thing would have been turned into a financial product years ago, but that part I admit is a guess rather than fact.
I suspect that the girls got all the revenue from the corn without having to cover the costs.
They included what it used to cost to heat and power the school for a year, but never mention what it is now. Details that are interesting to the story but probably take away from the 'feel good' type of article they were trying to make.
The show talks a little bit about the finances, and how people often start over-spending on details.
In England this can save some money over just buying something as big / distinctive. And if the homeowners DIY there are further savings. And some people are just very fussy about details, so self-build or conversions allow them to have total control.
One that particularly sticks in the mind for me was a nice old gent who got heavily into drugs in his teens so his family trust fund was taken out of his control. He had to ask permission from the trustees to build a £350,000 custom designed house,specifically designed around him, even though he hated houses and had lived most of his life in a mobile houseboat and never spent much time in one place.
There seem to be some people doing it. I've been reading about this a bit lately, and also had been to a remote place recently, where someone had built a rather big "earthship" and was living pretty much off the grid. It looked, very roughly, like the Brighton Earthship shown in the Example section here, but was round, not rectangular:
https://en.wikipedia.org/wiki/Walter_Segal
http://www.ianwhite.info/walter_segal_buildings.html
https://www.dailymotion.com/video/xxrtid_gd-s12-e12_news?sta... (Grand Designs)
http://www.ianwhite.info/THE_SEGAL_METHOD.pdf (Architects Journal article with detail explanation)
Thanks
After the money disappears they realize that yes, it is very hard.
Then someone else comes along, sees their failed restaurant and says, "It can't be that hard..."
Running a restaurant is easy, if you don't have to cover any expenses.
But unless you're in a fantastic location, or already have a great reputation before you open, it takes time to build a steady customer base.
Being a rural doctor is a sweet gig. They get paid as much or more than doctors in urban areas, so you can be making $300k in the middle of nowhere, Iowa.
As the article states, the area is a tourism hub so their B&B is probably quite busy. Otherwise, assuming they own the school free and clear and grow a lot of their own food, I imagine they don't have many expenses.
Suppose they made money and have a million in the bank, how long can they ride on that before they have to pack it in and move back to a place where they can get jobs? What about their kid's future expenses, how are those sorted out?
The article mentions a couple things about their B&B:
- 3 rooms
- they get overflow from other B&Bs, not their own business.
- they only operate during the summer
So that puts an upper limit to what they can earn from that.
Going rate for Milford, ON B&B is about $200/night.
That's about $600/day. That's $54k/year before costs assuming full occupancy 7 days per week during the in-season.
https://oldschoolbluegrasscamp.wordpress.com/register/
I couldn't find a time when their AirBNB sites weren't booked, but they probably command a premium given the size and amenities and tolerance for animals/kids.
The math on a lot of this appears to be a lot of "slow and steady"
Be careful, the Canadian real estate industry always publishes average sales prices, not median prices, and not median valuations.
Which is why the numbers are rubbish: Their numbers are biased toward by whatever turns over more, and by a small number of high value sales.
It's the same reason why average income is a farce. The average of 4 unemployed homeless individuals and a $250k/yr lawyer is $50k/year. The median is zero and more representative of reality.
Once the industry starts publishing the average valuation of a 3bd 1.5ba home (detached or not, there's not a lot of detached inventory left!), listen to them. Until then, ignore their self-serving statistical butchery.
One of the things I look at from time to time is what sort of burn rate I'd be willing to tolerate while 'retired' (which is code for just doing what ever the hell I want without having to fit it into other agendas). And, because it showed up here on HN once, ran the numbers on a missile silo. The one I was looking at was less than a million dollars to purchase but my brother in law, the civil engineer, gave me a list of things that would have to be vetted/fixed before occupancy. Since it was a vertical silo I was thinking a 10 story living arrangement built inside the silo itself, with floors going down from the circular top floor and an elevator in the middle.
We figured that construction, retrofits, and infrastructure would cost about 3 - 6 million (depending on how much corrosion and toxic waste cleanup was required to remediate). Power for pumps to keep it dry during the wet season, insurance, maintenance about 7K a month (it costs a lot to pump water up a 100'). We figured you'd have to start with about $10M to exit the other side with a "self sustaining" environment you could live and work in (but a seriously "fun" environment to hang out in. You could pay someone $12K a year just to come out once a week and restock the larder with consumables.
The school looks like a much simpler setup.
In dense areas, other ways of re-purposing space are happening. Everyone has seen former industrial facilities converted into multi-unit housing. But these ideas are even creeping into traditional neighborhoods. In my case, I would love to convert my second parking spot into additional living space.
The idea is, with urban neighborhood land values so high (at least in booming areas), it's hard to justify providing housing for a second car).
Of course, this isn't even a new idea. For decades people have been kicking their cars to the curb so they can use their garages for other purposes (gym, workshop, playroom,...). In the coming decades, as people move more towards uber/lyft style services for transportation, I can see a lot of prime space formerly occupied by cars being freed up for creative re-use.
Repurposing space is basically what happens to space.
Somewhat related to the story - I bought a pellet boiler off craigslist for $2800 and did 100% of the installation myself (electrical, plumbing [heat + water heater], control) all-in was about $3900, and I'm already in the black on it after 3 years use (vs. propane). I decided to burn lpg this year because it was 'only' $1.70/gal, and it turns out that even at that low price (compared to the last three years) I'd probably have been better off on pellets, but probably not better off enough to make up for all of the labor that it takes.
I set it up to automatically switch between the propane furnace and the boiler (I have a water/air hx) based on the boiler's temperature to make it seamless for my wife to use :). It's a Central Boiler Maxim M175 ... cranked all the way up, it might be able to heat his school (just barely) -- I run it at its lowest setting. Burns very clean, no smoke, happy neighbors.
Renovation can be done for a reasonable financial cost with an investment of time. Our house isn't super-luxury now, but it's perfectly serviceable and now we have a house on 11 acres that we couldn't have touched if it hadn't been a dump when we bought it.
EDIT: Here is an example: http://www.wihed.org/wp-content/uploads/2012/09/Acushnet-Com...
These Vegas transplants bought a small-town Nebraska schoolhouse and let their artistic flags fly.
http://www.omaha.com/living/these-vegas-transplants-bought-a...
I'm all for re-purposing, but there is a point at which a building built for one purpose just isn't suitable for any other. Elementary school into residence/home might be that line.
http://connect.bostonmagazine.com/articles/?p=3392
Architect's photos: http://www.maryannthompson.com/projects/proj25.html
- Property taxes (it's huge)
- Building code
- Zoning
Would prevent something like that happening here.
Of course, some of us may also believe that Canadian taxes may be paid in maple syrup, Molson lager, or ketchup chips, and that the revenue agency is required to sincerely apologize for every remittance accepted.
As a national aggregate, we don't get out much, even to visit the neighbors.
(I'm British, but own property in the US, and I'm staggered by the size of my property tax bills here vs. the UK, and more so by the sheer number of permits I have to get for doing trivial work I'd tackle myself in the UK).
Our property taxes vary wildly in the US. One place, you might pay 3% of the fair market value, and in another, only 0.25%. Or maybe the assessment value is restricted by some formula. Maybe it's reassessed annually, or maybe every 3 years. There's really very little consistency, because property taxes are usually assessed locally and the major service provided from them is the local public schools.
Building codes between Canada and the US are pretty much the same. In either place, there's a "model code", but each locality has to adopt it explicitly for it to be in effect. Some places adopt it without modification, and others amend it heavily. A Canadian town could adopt the American model code (called the international building code, of course) if it wanted to, or vice versa.
But for the most part, they have nearly identical intent, even if the implementations are far apart. As long as you hire local contractors for the work, you shouldn't need to know the particular variances in the building codes. Either way, you won't be allowed to do anything serious without a work permit, and someone will inspect the heck out of it.
(Of course, the permits and inspections are often ignored for DIY work.)
I doubt you would even be able to buy an old public school building in many places in the US. Perhaps in Detroit. Most local governments would rather board it up or use it for administrative offices than sell. You would have better luck finding an old church.
https://www.google.com/maps/place/Milford,+ON+K0K,+Canada/@4...
They can nearly see Mexico from their house! (Mexico, NY that is)
https://www.redfin.com/OR/Beavercreek/23931-S-Schuebel-Schoo...
Just have to get an occupancy permit. Taxes were $5k for 2014.
http://www.columbiapacificaviation.com/trainingsalesetc/airc...
When there are some good ones with decent services not far from population, the government seems to have problems getting the schools on the market. By the time anyone can buy them they would be ruins.
I once seriously considered buying a defunct health club for the same domestic purpose. Adapting the locker rooms seemed the most daunting aspect, but the 3-lane full-length indoor pool was awful tempting.
Notice how far out the family had to go to make it work: fully insulating walls, wood heat, and a large garden among other factors.
On the plus side, I'm guessing that the sale of their Toronto home left them with a lot of budget to do that work though.
IIRC, the average selling price of a home in Toronto is floating around $1M these days, and the school cost "only" $190K.
Good for them on using their money to fund a great learning/growing experience for their kids.
The secondary school is further, at about 50km to Belleville.
They'll be fine.
Looking at the girls, the oldest could probably start chopping wood herself. Not, much, but she looks close to big enough.
And standing square on. Where did he swing it from?!
The axe is moving, but it could be moving up. Shutter time might tell us something of its speed.
Considering that when splitting wood you should at a minimum be wearing safety glasses, I'm pretty sure this can all be done much safer.
I could maybe see it if you're hammering in wedges or something.
>SUMMARY: Wood chopping is still present in many homes in rural regions. In some cases, it may lead to serious ocular injury and potential loss of vision.
Anecdotally, my dad and I drove into the woods and cut down trees for the fireplace in my family's house. After he cut down the tree, he would cut the tree into 1 foot rounds and then split them with a maul. The cut, triangular pieces had to be loaded and stacked into the back of a pickup, and it was back breaking work.
However, every time the work was done, I remember feeling a sense of accomplishment and contemplating how it was the drudgery that ultimately created that feeling.
I think that we should not spare our children these enormously valuable learning experiences in the name of safety.
A little bit of gratuitous labor helps the lesson sink in. So maybe you set up a little contest with your victi-er, kid. You each take half the logs and whoever finishes first wins. You even let the kid get a head start. They're concentrating hard because they want to win. But behind their back, you're using a log splitter instead of a maul. When you yell out "done!" they look around, and see that you "cheated". Hopefully, they learn the value of appropriate technology over brow sweat.
That guy shouldn't be swinging that maul so close to his kids, not for safety reasons, because he should be using at least a lever-operated log splitter instead.
A lot of it comes down to family training. The older kids teach the younger kids what to do and not do. This doesn't protect from every little thing, but life is not that safe.
You do need training however. I was in Montana as a child with my dad on business. The client lived way out in the middle of nowhere. He was a big man (bigger than my father who's 6' 1"). He reached into a drawer, pulled out two bear size handfuls of .22lr, showed me how to load the riffle (fortunately I'd been trained by my dad and grandfather on hunting small game around the farm) and told me the adults need to talk. What he didn't tell me is that it was a modified .22lr: full auto. I was in for a surprise when 10 rounds cracked out at supersonic speed. I was fine and had fun. It could have been bad though.