General Contractor and Master Electrician trying to figure out where to get started.

[Dakota Dalsing]

Hello this is my first time posting and looking for a little guidance and advice. I've had my own company for the last two years which makes it a little harder to get financing. I already have a primarily home with a mortgage but I do have over $300,000 in equity in that home. I have been considering getting into Long or short term rentals and developing. I live and work in the Park City area which is where I have been thinking of doing my investing. The only down side of the area is that all types of properties are more expensive. On the flip side of that rents are pretty high and any homes that are more affordable sell quickly.

I have been considering getting into developing but I would have to get partners to help with the financing. I would bring the licensing, experience, crews for infrastructure, building and local real estate agents. I am not sure though how to find those kind of partners and how attractive that would be to others.

Going the rental route seems like a good way for me to go also but I'm not sure if I can scale it and make it cash flow with the prices and interest rates.

I would love to hear any thoughts or ideas on what I've been thinking.

[Kevin Sobilo]

@Dakota Dalsing, it sounds like you need to narrow your thinking and find a strategy that works for YOU. I emphasize YOU because figuring out a strategy to use can be as much about yourself as the market you are working in.

So, given that you are a general contractor and master electrician, the obvious strategies that come to mind involve physical rehabs of a property. So, BRRRR (Buy Rehab Rent Refinance Repeat) or Fix n Flips.

I don't know how your business flows, but I knew a guy who had an excavation business. He would do maybe 1 flip per year. It allowed him to keep him and his guys busy during the slow winter season and probably to have work to do during other periods of bad weather. So, it served multiple purposes for the way his business flowed.

With regard to BRRRRs, I would start by learning what rentals look like in your target market. What does a B class rental look like and what does a C class look like? What kind of condition are they in and what amenities are expected. Then of course what rents are obtainable for units in nice condition.

From that you can evaluate properties in poor condition and have an idea of your target. You'll be able to work up numbers with more confidence because you'll know the condition of the property you're starting with and what your goal is in terms of condition, value, and income/rent. That will allow you to figure out what you can afford to buy these properties for.

Make use of the calculators on here to analyze deals or find another suitable calculator to help you analyze deals and analyze a LOT of them because it takes practice.