General Contractor - Flipping Houses

[Steve Batterton]

My wife and I are looking to purchase our first house to flip.  When we secure the house should I use a general contractor or should I act as the GC?   I know the GC will add to the cost but they will also deal with all the trades that will  be needed complete the job.       

[Richard Balsam]

It depends on what's what upgrades and repairs are needed. If you find a house that has a decent layout but is "tired" and in need of all upgrades to make it look great - you don't really need one. If you need to upgrade the mechanicals ( electric panel and/or wiring, HVAC, rough plumbing, etc)- I would hire the specialists to do their trade, then a drywall company to close up the walls. A GC may cost more like you said - if you can find one that actually does the work and not sub out it may make sense - or if he/she employs their own specialists and can do the work cheaper than individually farm out the work. But...I haven't used one yet in 14 years of investing. All subs I hire as needed, along with my trusty handyman that is a licensed HVAC guy that also does all my plumbing installs, wood rot, door replacements, electrical outlets, plumbing, lights, etc. I do all the small detail work myself- my own trim work, cut the wood while my handyman installs for wood rot outside, all caulking, install the new locks, buy the materials needed, etc, while everyone else works on the house. This schedule works for me, and the details are where the buyer/client notices how well the house looks. The nicer it is, the more I can ask for it- either in rent or sales price. Unfortunately, I've heard of issues where a GC was left alone for days, and either did something wrong, or didn't finish on time  and expects payment. Just run the numbers to see if you can afford a GC - after getting a few quotes. And...show up to make sure everything is done to your requirements a few times per week!