Help planning out major repairs - 1st time!

[Cliff T.]

Hi all- I'm in the process of closing on a property that will require some major repairs. I was lucky to get it at a pretty solid price (60% of ARV) and will spend in the range of $30-40K on repairs. Current plan is to rent out once the repairs are done, but I may consider selling if the surrounding area continues to sell well. I've combed through the forums and blog posts but wasn't able to find any guidance for this particular topic. Should I plan on handling specific repairs (roofing, electrical wiring, plumbing) on my own with contractors and then hire a GC to handle the rest (painting, kitchen & bathroom remodel, flooring, etc.)? My rationale for coordinating the major repairs myself is bc I feel like I have a good sense of who the best contractors are in the area (e.g. Roofer and electrician have hundreds of reviews of Yelp at nearly 5 stars and were recommended by a friend). However, for the other projects, I feel like it would be easier to bundle those up with a single GC and have them complete as a single project. Is that a smart way to go about it? Hire the best, local vendors to handle major ticket items and then use a GC for everything else? I'm guessing this may be a bit more expensive as I'll essentially have 3-4 groups working on all the repairs vs a single GC?

[Rashad Nelson]

Hey Cliff, 

I just happened to see your posting.  I'm actually in the same boat myself.  I purchased a property in an up and coming neighborhood in Baltimore where my proposed repairs will be upwards of $75K and I could either rent the final product out or put it up for resale when it's done.  I'm leaning towards a flip.  

You can definitely always save money doing the project yourself by hiring / managing the multiple sub-contractors, but the question is going to be can you apply and pull permits yourself (same cities requires licensed GCs to do so) and do you have the time to manage the project yourself.

Here's what I'm doing, because I'm converting some spaces in my project and things can get complicated with framing.  I've hired a local architect to nail down the details of this project including the materials and finishes.  My architect can also present final plans to the city for review / approval for permits.  From there, I could either give it to my go-to GC to quote it, pull the approved permits, and get started or I could piece meal the project myself using multiple contractors.  The only problem with the 2nd option of using multiple contractors is that I would still need a licensed GC to pull the permit, per city regulations.  It may be different in your area.  Either way, my architect will also act as an on-site inspector to ensure the work is being done to spec.  

If your budget allows, I would consider doing the same thing, especially if you plan to manage the project yourself.  A hard set of plans eliminates all ambiguity.