DIY or Contract out ?

Question

Hope everyone’s doing well today!!

When first starting out, let’s say you get a property that needs updated but no major repairs and ya plan on living in the property....Would you suggest contracting out or doing the work yourself?

Would love to hear some good/bad experiences :)

Sebastian Madariaga · Answer

Thanks for the input Dan! I was thinking doing cosmetic rehab myself ((on projects i know how)) and contracting out bigger projects. Then after a few properties, like you said, let the experts do what experts do. It's seems like thats the best bet!

Dan Krupa · Answer

@Sebastian Madariaga - my first full flip was a house we purchased and lived in, prior to kids. Don't do the rehab yourself if you have kiddos. It is a good way to learn and understand basic things. Now I am a firm believable in letting the experts do what the experts do. My time is more valuable then what you pay for most things and the subs are going to do a better job.  Pros and cons to both. I am glad I started the way I did and learned a ton but also glad to be wise enough to hire everything out on our flips now.

Account Closed · Answer

I purchased my first property in March of 2016 in Kansas City, MO that needed cosmetic updates.  I would determine what you would feel comfortable in doing yourself and what you want to contract out.  For me, my dad and I rehabbed the bathroom before I moved in, taking about 4-5 full days (I took a week off work to do the bathroom and electrical).  This included tiling the shower and floor.  Two years later, when I rehabbed the kitchen and dinning room, I contracted tiling out, not because I couldn't do it myself, but I paid someone to do it in two days, where it would have taken me probably a week while working a full time job.

I think there is a benefit in doing a rehab yourself just so you know what goes in to it.  Also doing a rehab yourself allows you to learn the skills to do things yourself in your own home.

Rich Kniss · Answer

@Sebastian Madariaga, we did most of the work on the first couple of flips and have switched over to hiring a general contractor. We learned a fair amount about the process, and we earned more money (and capital is what we needed). Think in terms of making half the profit by hiring out, but you can do two of them at the same time and make the same money.

That said, I'd probably still see what you can do yourself on the first one and hire subcontractors for the work you can't do, rather than hire a general contractor for all. it will teach more about the process.

Sebastian Madariaga · Answer

Thanks for sharing your story Brian! I love how you did the rehab yourself then your next project you contracted out some of the work. I'm thinking thats probably the best route, like you said about gaining the skills on the rehab but also determining what you feel comfortable doing vs contracting out. Im hoping doing it myself will help me save up some capital so I can get into my 2nd deal quicker.

Sebastian Madariaga · Answer

Thanks for your input Jacob! I feel I'd be able to do most of the work, but would contract out big projects if needed. No kids in the house, which I feel would make it a little easier. My long term goal is to acquire many residential properties, single and multi, that will allow me to do it full time and leave my current job.

As of right now, I don't have the capital to rehab a home all at once while paying rent on a place to live, so figured my first couple properties I'd live in them and slowly update to make them rent ready. I feel once I have extra cash flow coming in, I'd be able to just contract everything out and focus more on obtaining more deals.

Jacob Sampson · Answer

Are you able to do the work and do you have the time?  Do you have a spouse or kids that will have to live in the place while it is remodeled?  Also what is your long term goal?  If it is to get a personal residence on the cheap and you are able to do the work then I would go that route.  If you are trying to build an empire that might be a different story.

DIY or Contract out ?

Most Popular Reply