A diamond made from the rough

Published 12:01 am Monday, June 6, 2011

This hedge turned into a redwood tree.

Much, much grander than anticipated.

Remember the good old financial days — about four years ago? Homes were selling for high prices. Folks could count on their property appreciating in value.

Craig Pennington, 59, remembers four years ago. The mortgage broker thought it would be a kick to buy a rundown house and fix it up to sell. He had a hunch about a possible downturn in the mortgage industry.

He thought remodeling a house was a hedge. A sideline. A flipping hobby that could have flopped.

Pennington found the abomination he was looking for. Tucked in a cul-de-sac of beautiful new homes, he spotted the eyesore.

More than an eyesore.

This one stunk like a sty.

His wife, Bobbie Pennington, said the story they heard was that the developer and the builder had a disagreement about the lot.

“So the developer decided he would not sell the property to the builder,” Bobbie Pennington said. “The house stuck out like you could imagine.”

Craig Pennington said he thought with all new houses around the dilapidated dumper, it was a proper candidate for restoration.

Dab a little paint, fix a little carpet, do a little dance.

He was wrong.

“This was way more than I was planning on doing,” he said. “There was a chance it would have to be bulldozed down. It was that borderline.”

He had a partner in the problem. His sister, Marcia Rizzuto, came in as an investor.

“We’re still speaking,” Rizzuto said.

Before they plunged in, the vacant home was checked by an architect who said it was sound.

They painted the outside to begin pleasing the neighbors. The landscaping was, well, oodles of dirt. They had half a dozen dump trucks full of extra dirt hauled away. Carl Pennington said his lot must have been the handy receptacle for the developer’s retention pond diggings.

The house has a traditional concrete foundation with a stick-built first floor that’s a daylight basement. On top of the bottom floor is a log house.

Yes, cedar.

It’s not an apparent log house as it’s all painted light brown outside to blend with the neighboring homes. But inside it’s like stepping into the main room at the Ponderosa Ranch.

Hi, Hoss.

Hey, Little Joe.

The living room is built with original cedar logs, all restored by Craig Pennington.

“I sanded everything by hand because of the roll of the logs,” he said. “It’s like ‘Little House on the Prairie’.”

The rest of the house is a mixture of the logs and new wallboard. Craig Pennington reshaped the kitchen and several other rooms. Each bathroom is stylish with rock and tile. The windows are the same size as the original house because they were placed in the log home walls and couldn’t be enlarged or moved.

For the more difficult tasks, Carl Pennington turned to his nephew, Todd Henderson, a builder, who lives near the Bothell project. Henderson loaned tools and gave advice.

“But for him, I wouldn’t have been able to do this,” Carl Pennington said.

When he needed a contractor for plumbing or electrical, he checked out potential subs with the Washington courts.

“That’s my best tip,” Craig Pennington said.

They paid $250,000 for the lot and home. They’ve put in about $75,000 and that includes adding a driveway and garage.

“It’s been interesting watching Craig remodel this house,” said Bobbie Pennington. “Hasn’t he done a great job?”

The trio weren’t aiming for free publicity now that the house could be put on the market.

They’ve got it rented.

When the profit in selling homes improves, they’ll likely advertise for a buyer, they said.

Craig Pennington, a gamer, said he would take on another fixer.

“I enjoy doing this,” he said. “Maybe not to this degree.”

Kristi O’Harran: 425-339-3451, oharran@heraldnet.com