House-Hunting & Fixer-Upper Investment
Budget: $30 – $250 USD
This case should be captivating to anyone interested in purchasing a house that needs some fixing
up. It involves research, procurement, finance, technology, and personal ethics.
Initiating
Background Scenario:
Many people today cannot afford to buy a home, including you! Your favorite Aunt Julie, however,
has some extra money, and she has been disappointed with the low returns she has been getting on
her investments. She knows that many houses are priced to sell, and mortgage rates are low to those
who qualify. Julie already bought a second home that she uses as a vacation property, and she is
interested in owning more real estate as an investment. She would really like to buy a property and
act more like a bank than a landlord. Why should a bank get 4% or more in interest for a loan when
she can only get a little over 1% on a savings account? You told her that you would love to stay in
the area for a very long time and live in a house, but you could not qualify for a loan yourself. You
would be happy to find roommates to help pay rent and help your financial situation, too. Julie
agrees to go house-hunting with you, and she is willing to pay up to $550,000 for the right property,
including any renovations. (Note that this amount may vary by location. Check with your instructor
about the amount for your case.) Julie suggests you look for a 3- or 4-bedroom house with at least 2
full bathrooms. She also suggests that you try to find a house that is in a nice area but needs some
remodeling, but not more than $80,000 of work, including “sweat equity,” meaning the two of you
plus some family and friends should be willing to help out without pay.
Perform the following initiating tasks for this project:
Tasks
1. Research the rental market for single-family houses in your area or another area where you would
like to live and work for a long time. Find at least three references about investing in rental
properties and advice on finding a good fixer upper.
Prepare a short paper and presentation
summarizing your findings.
2. Determine a location where you would like to live for at least ten years and where you think your
aunt would like to buy a property. Your aunt wants to make sure it’s a good investment, so be
realistic in determining a property and a location. For example, research the population trends
and rental homes available for the area and what’s available given the cost and size requirements.
Also assume that you will have to find one to three roommates who will help you pay for rent
each month.
Document your research and three potential locations on a one- to two-page
paper. Try to narrow the locations to a certain part of a city or town, not a whole city. Find five
sample houses in each area that meet your aunt’s criteria (3 or more bedrooms, 2 or more full
baths, good investment potential, under $550,000 before renovations (or your agreed-upon
amount). Use a real estate web site like www.zillow.com to find information.
3.
Prepare a stakeholder register and management strategy for the project. Include yourself
and make up names and information for the following: a realtor to aid in house-hunting, a bank who
will lend Julie money to refinance her current home so she can pay cash to purchase this investment property, a
contractor who can do a lot of renovation work at a great price, and friends and family you think could help fix
up a house. Assume that your Aunt Julie is very knowledgeable about finances and purchasing and
renovating houses but only handy when it comes to painting. She’s also very organized and cost-
conscious and leads a very busy life. Assume that you have a relative in the area you choose,
Nick, who can help with a lot of basic renovations at weekends. Assume you will have some
other friends (your classmates in this case) and family who can help with some of the work for
free, and you know a few skilled acquaintances (an electrician and a plumber) whom you would
need to pay for their services, but you think they’d give you a nice discount. Use the templates
provided on the companion website and review the sample stakeholder register and management
strategy in the text. The first three months of the project will involve finding and closing on the
property, and the last three months will involve fixing up the property.
4.
Prepare a project charter for the Fixer Upper Project. Assume the project will take six
months to complete and cost about $550,000 (or agreed upon price), that you estimate you will
spend $80,000 for renovations., finding renters (preferably two renters), and preparing financial
information for you and your aunt. Assume the project starts on October 1 and finishes on April
1. Recall that the main project objectives are to find and renovate a house that your Aunt Julie
would own but you would live in and be able to rent out one to three rooms. Julie has also agreed
that she will let you earn equity in the house. As she has said to you a few times, “Pretend I’m
your banker, and it’s your home.” You will do all of the renovation planning work, including
creating detailed cost estimates for all of the renovations, preparing a detailed schedule for the
renovations, overseeing renovations, preparing a rental agreement and a strategy for finding
renters, and creating a spreadsheet to analyze your “mortgage” payments and other financial
information. Use the project charter template provided on the companion website and review
the sample in the text.
5.
Prepare an initial scope statement for the project. Assume that your Aunt Julie is doing the
work to find and close on the house, which will take three months and be completed by January
1. The main scope of your work is to plan and oversee the renovations of the house, find
renters, and prepare a spreadsheet for financial analysis. Your aunt wants you to get at least three
bids on all major expenses, like the flooring and windows. Define key deliverables in as much
detail as you can, asking your instructor for guidance if needed. Even though you will not
actually find and renovate a house, describe the work as if you were. Assume that the main
renovations you will need to do include the following: tent the house to get rid of termites and
other insects; rent a dumpster to get rid of a lot of junk in the yard and house, like the old carpet
and kitchen materials; totally remodel the kitchen (new cabinets, appliances, sink, lights, counter
tops, etc.); buy a new furnace, washer and dryer, sump pump, and several electrical outlets;
replace all the windows; put in laminate flooring in the entire house (except the bathrooms);
paint the entire inside of the house, and spruce up the yard by removing some old shrubs,
planting flowers, repairing the wooden fence, and leveling and seeding the lawn. (Note: If you
find an actual property, feel free to change the renovation work as desired.)
6.
Complete a draft schedule in Excel for you to work on this case study. Include all of the
tasks in this case study using the main categories of initiating, planning, executing,
monitoring and controlling, and closing. Break down the executing work to what you think is
an appropriate level. The main executing deliverables should be a renovation cost estimate,
renovation schedule, rental strategy, and financial spreadsheet. Be sure the WBS is based on the
project charter, scope statement, and other relevant information. Estimate how many hours you
will spend on each task in the Excel file. See the draft schedule template on www.intropm.com.
7.
Prepare a 10–15-minute presentation to summarize results from the initiating phase of
the project. Assume the presentation is for a management review to decide if the project should
move on to the next phase
Research the rental market for single-family houses in your area or another area where you would like to live and work for a long time. Find at least three references about investing in rental properties and advice on finding a good fixer upper. Prepare a short paper and presentation summarizing your findings.
Determine a location where you would like to live for at least ten years and where you think your aunt would like to buy a property. Document your research and three potential locations in a one- to two-page paper.
Prepare a stakeholder register and management strategy for the project.
Prepare a project charter for the Fixer Upper Project.
Prepare an initial scope statement for the project.
Complete a draft schedule in Excel for you to work on this case study. Include all of the tasks in this case study using the main categories of initiating, planning, executing, monitoring and controlling, and closing.
Prepare a 10–15 minute presentation to summarize results from the initiating phase of the project
Please ensure the presentation is delivered using slides only. Ensure all deliverables are submitted as electronic files.
up. It involves research, procurement, finance, technology, and personal ethics.
Initiating
Background Scenario:
Many people today cannot afford to buy a home, including you! Your favorite Aunt Julie, however,
has some extra money, and she has been disappointed with the low returns she has been getting on
her investments. She knows that many houses are priced to sell, and mortgage rates are low to those
who qualify. Julie already bought a second home that she uses as a vacation property, and she is
interested in owning more real estate as an investment. She would really like to buy a property and
act more like a bank than a landlord. Why should a bank get 4% or more in interest for a loan when
she can only get a little over 1% on a savings account? You told her that you would love to stay in
the area for a very long time and live in a house, but you could not qualify for a loan yourself. You
would be happy to find roommates to help pay rent and help your financial situation, too. Julie
agrees to go house-hunting with you, and she is willing to pay up to $550,000 for the right property,
including any renovations. (Note that this amount may vary by location. Check with your instructor
about the amount for your case.) Julie suggests you look for a 3- or 4-bedroom house with at least 2
full bathrooms. She also suggests that you try to find a house that is in a nice area but needs some
remodeling, but not more than $80,000 of work, including “sweat equity,” meaning the two of you
plus some family and friends should be willing to help out without pay.
Perform the following initiating tasks for this project:
Tasks
1. Research the rental market for single-family houses in your area or another area where you would
like to live and work for a long time. Find at least three references about investing in rental
properties and advice on finding a good fixer upper.
Prepare a short paper and presentation
summarizing your findings.
2. Determine a location where you would like to live for at least ten years and where you think your
aunt would like to buy a property. Your aunt wants to make sure it’s a good investment, so be
realistic in determining a property and a location. For example, research the population trends
and rental homes available for the area and what’s available given the cost and size requirements.
Also assume that you will have to find one to three roommates who will help you pay for rent
each month.
Document your research and three potential locations on a one- to two-page
paper. Try to narrow the locations to a certain part of a city or town, not a whole city. Find five
sample houses in each area that meet your aunt’s criteria (3 or more bedrooms, 2 or more full
baths, good investment potential, under $550,000 before renovations (or your agreed-upon
amount). Use a real estate web site like www.zillow.com to find information.
3.
Prepare a stakeholder register and management strategy for the project. Include yourself
and make up names and information for the following: a realtor to aid in house-hunting, a bank who
will lend Julie money to refinance her current home so she can pay cash to purchase this investment property, a
contractor who can do a lot of renovation work at a great price, and friends and family you think could help fix
up a house. Assume that your Aunt Julie is very knowledgeable about finances and purchasing and
renovating houses but only handy when it comes to painting. She’s also very organized and cost-
conscious and leads a very busy life. Assume that you have a relative in the area you choose,
Nick, who can help with a lot of basic renovations at weekends. Assume you will have some
other friends (your classmates in this case) and family who can help with some of the work for
free, and you know a few skilled acquaintances (an electrician and a plumber) whom you would
need to pay for their services, but you think they’d give you a nice discount. Use the templates
provided on the companion website and review the sample stakeholder register and management
strategy in the text. The first three months of the project will involve finding and closing on the
property, and the last three months will involve fixing up the property.
4.
Prepare a project charter for the Fixer Upper Project. Assume the project will take six
months to complete and cost about $550,000 (or agreed upon price), that you estimate you will
spend $80,000 for renovations., finding renters (preferably two renters), and preparing financial
information for you and your aunt. Assume the project starts on October 1 and finishes on April
1. Recall that the main project objectives are to find and renovate a house that your Aunt Julie
would own but you would live in and be able to rent out one to three rooms. Julie has also agreed
that she will let you earn equity in the house. As she has said to you a few times, “Pretend I’m
your banker, and it’s your home.” You will do all of the renovation planning work, including
creating detailed cost estimates for all of the renovations, preparing a detailed schedule for the
renovations, overseeing renovations, preparing a rental agreement and a strategy for finding
renters, and creating a spreadsheet to analyze your “mortgage” payments and other financial
information. Use the project charter template provided on the companion website and review
the sample in the text.
5.
Prepare an initial scope statement for the project. Assume that your Aunt Julie is doing the
work to find and close on the house, which will take three months and be completed by January
1. The main scope of your work is to plan and oversee the renovations of the house, find
renters, and prepare a spreadsheet for financial analysis. Your aunt wants you to get at least three
bids on all major expenses, like the flooring and windows. Define key deliverables in as much
detail as you can, asking your instructor for guidance if needed. Even though you will not
actually find and renovate a house, describe the work as if you were. Assume that the main
renovations you will need to do include the following: tent the house to get rid of termites and
other insects; rent a dumpster to get rid of a lot of junk in the yard and house, like the old carpet
and kitchen materials; totally remodel the kitchen (new cabinets, appliances, sink, lights, counter
tops, etc.); buy a new furnace, washer and dryer, sump pump, and several electrical outlets;
replace all the windows; put in laminate flooring in the entire house (except the bathrooms);
paint the entire inside of the house, and spruce up the yard by removing some old shrubs,
planting flowers, repairing the wooden fence, and leveling and seeding the lawn. (Note: If you
find an actual property, feel free to change the renovation work as desired.)
6.
Complete a draft schedule in Excel for you to work on this case study. Include all of the
tasks in this case study using the main categories of initiating, planning, executing,
monitoring and controlling, and closing. Break down the executing work to what you think is
an appropriate level. The main executing deliverables should be a renovation cost estimate,
renovation schedule, rental strategy, and financial spreadsheet. Be sure the WBS is based on the
project charter, scope statement, and other relevant information. Estimate how many hours you
will spend on each task in the Excel file. See the draft schedule template on www.intropm.com.
7.
Prepare a 10–15-minute presentation to summarize results from the initiating phase of
the project. Assume the presentation is for a management review to decide if the project should
move on to the next phase
Research the rental market for single-family houses in your area or another area where you would like to live and work for a long time. Find at least three references about investing in rental properties and advice on finding a good fixer upper. Prepare a short paper and presentation summarizing your findings.
Determine a location where you would like to live for at least ten years and where you think your aunt would like to buy a property. Document your research and three potential locations in a one- to two-page paper.
Prepare a stakeholder register and management strategy for the project.
Prepare a project charter for the Fixer Upper Project.
Prepare an initial scope statement for the project.
Complete a draft schedule in Excel for you to work on this case study. Include all of the tasks in this case study using the main categories of initiating, planning, executing, monitoring and controlling, and closing.
Prepare a 10–15 minute presentation to summarize results from the initiating phase of the project
Please ensure the presentation is delivered using slides only. Ensure all deliverables are submitted as electronic files.