Los Angeles, CA · Member since 2023 · 4 posts · 1 vote
Hi BP Community -
I'm currently in search of a multi-family to BRRR. I currently own an STR and did not need to rehab. My goal is to do at least a light rehab on my multi-family purchase in order to gain equity right away. That said, I don't know how to go about finding a good rehab contractor and I don't understand at what point in the process they should get involved. E.g. - in order to understand what my rehab costs will be, do I have a contractor come out and assess the property prior to offer? I'd also love to learn what estimated costs are for things such as plumbing, electrical, kitchen and bathroom renovations etc so I can better understand budget needs for deals I come across. Any guidance is much appreciated. Thank you!
I'm currently in search of a multi-family to BRRR. I currently own an STR and did not need to rehab. My goal is to do at least a light rehab on my multi-family purchase in order to gain equity right away. That said, I don't know how to go about finding a good rehab contractor and I don't understand at what point in the process they should get involved. E.g. - in order to understand what my rehab costs will be, do I have a contractor come out and assess the property prior to offer? I'd also love to learn what estimated costs are for things such as plumbing, electrical, kitchen and bathroom renovations etc so I can better understand budget needs for deals I come across. Any guidance is much appreciated. Thank you!
Great question Angela, I also am looking to get into this method and would love some suggestions besides the obvious - referrals from agents, mentors and other team members
Especially regarding estimated costs for various rehabs, this depends on the location of course but ballpark figures for back of the napkin estimates would be helpful.
Going to meetups, REIA's, etc. will be the best way to develop relationships with other investors who can give you referrals to the best contractors. At the very least, join and be an active participant in your local FB investor groups J Scott also has a great (if a little dated) book on estimating rehab costs in the BP bookstore.
You can certainly have a contractor walk properties with you to give you a ballpark idea on costs, but I would not expect them to do it for free.
You might consider partnering with another multifamily investor with experience in rehabs. This will allow you to learn from them as well as mitigating your risk on making bad decisions.
Thank you, Owen - I just went to my first REI meetup last weekend and plan to continue getting more involved in investor groups as well. Great idea to partner with another multi-family investor. I appreciate your input!
Hello Angela, the best way to find contractors is to do your research and get recommendations from friends, family, or professionals in the industry. You can also check online review sites, such as Angie's List or HomeAdvisor, to see ratings and reviews of local contractors. It's important to thoroughly vet any contractors you're considering by checking their credentials and licensing, and asking for references from previous clients. It's also recommended to get multiple quotes and compare prices and services before making a decision, typically contractors provide free estimates.
Thank you, Jesus. This is very helpful. I have a few calls out to brokers in my area for their suggestions and experience with local contractors. I would also want to seek out multiple quotes for comparison. Thanks again!
what everyone else said, and working with an investor friendly agent can be a game changer! A good one will have their lists of great contractors and not so great ones. Be conscious, some can hold these tight to their chest, because they've been through the bad to find the good ones. A good contractor can change everything and make your RE journey that much easier. Just make sure to offer them something in return such as referring them out to others you know, or potentially working with them in the future.