When a house sells, neighbors wonder: What changes will be made? When it's a neglected, humble home set way back on a lot, the concern is that the old place will be torn down and replaced with a storied residence that eclipses the street.

Sometimes, however, even small, battered shelters get a second chance. Just look at the one-bedroom, one-bathroom cottage at 5619 S.E. Pardee St. in Portland's Woodstock neighborhood.

Last year, we reported in our Bidding Wars series that the modest 1908 home on a standard, eight-of-an-acre lot sold for $215,000, almost 8 percent over its asking price after only three days on the market in November.

Then we heard from the buyer, Rich Hannah, a former 20-year Intel and Adidas employee, who explained his intentions to rehab the forlorn home as well as the disintegrating detached garage and rickety workshop, and resell the property for less than Portland's median price.





"Although a great candidate for a tear down, I took it down to the studs and loaded the house up with new wiring, plumbing, insulation, windows and high efficiency furnace and appliances," says Hannah.

Working with an architect, Hannah's team improved the flow of the 1,098-square-foot house by reconfiguring the long living room and other underused spaces.

Without increasing the size, the single-story house now has an inviting foyer, functional kitchen with an eating area, laundry room, updated bathroom, and, remarkably, three bedrooms.

Much is new here, like double-pane windows, lighting and other energy-efficient features. Still, there are touchstones to the past.

The pitched silhouette and T-shaped footprint are the same, and passersby will see the familiar stained-glass window in the entry door.

Other features preserved during the top-to-bottom renovation were original Douglas fir floors and century-old bricks. Even the old weather vane was polished and put back on top of the workshop's new roof.

When walls were taken down, the crew found buried surprises, including World War II-era The Saturday Evening Post magazines that Hannah calls "the best kind of time capsules."

Today, fresh landscaping maneuvers around old trees, and thickly knotted wisteria vines will soon climb the trellis again.

Property upgrades also included transforming the garage and workshop into useful spaces that could also be used as a kid zone, art studio or income-producing accessory dwelling unit (ADU), says Jarrett Altman of Neighborhood Works Realty, who listed the property for sale at $459,000 on Monday, April 2.

The three buildings -- the house, garage and double-height workshop -- are separated by grass and gravel. An inviting covered deck off the back of the garage faces the front of the workshop and can be seen from windows in the house.

"We really love the way the area between the two garages and the house turned into a fun patio space," says Altman, who will hold an open house at the property from 1 p.m-3 p.m. on Saturday, April 7, and 11 a.m.-1 p.m. on Sunday, April 8. "It gives a little privacy for entertaining or having a barbecue, but still leaves all the yard in the front for gardening and landscaping, since that's where all the sun is."

Altman applauds Hannah's goals to preserve a residential property that fits the neighborhood, while making it more functional and still affordable. Portland's median list price is $550,000, according to real estate database Redfin.

Hannah recognizes that he won't make as much money rehabbing old homes as he would building bigger new ones, "but it's the right approach for Portland," he says. "It's great for the neighbors, neighborhood and future homeowners."

-- Janet Eastman



jeastman@oregonian.com

503-799-8739

@janeteastman



