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Updated over 5 years ago on . Most recent reply
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Should I use a General Contractor for my first Rental?
Hi Folks!
I have a two unit duplex opportunity, and have painstakingly put together the numbers and contractor bids for everything that needs to be rehabbed. I have all of the subs that I would need do the project. *I will be living in one of the units and can afford the mortgage on my own*.
My question is, do I really need a General Contractor to run the project in this scenario? I feel like I'd be wasting 10%-%15 of my budget on GC fees, when I'm not exactly on a rush time schedule. Since I will be living in one of the units, I can take my time.
However, as a newbie, I realize that there is a lot I don't know, so, I'm asking my Biggerpockets family! Should I skip the General Contractor this time around, or should I get one, especially since this is my first rental? What say ye? :-)
Most Popular Reply
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I really don't plan to do any DIY. Maybe at most I might lay down some clickboard in the living room and dining room, as well as paint them, but I'm not doing any demo because I'd been advised to be careful where I'm knocking! lol
You make a point about time spent @Andrew K. Especially since this is my first deal, I really am thinking about how dirty I want to get with this? I will say, that I will have to learn all this stuff sooner or later, and it'a about the marathon and not the sprint; so we shall see. Thank you my friend!
Originally posted by @Andrew K.:
@Alex Smith you’ll get replies from people on either side of this argument. However, I think you should take a close look at the opportunity costs of your options. Is your time best served swinging hammers? Or looking for and analyzing the next deal?
I used a blended approach on my last property. Tackled the DIY projects I was comfortable with and hired out the rest to a GC. Working on the place myself also gave me the additional benefit knowing the neighborhood well, meeting the neighbors, mailman, etc.
Work on what you can, hire out the rest with the intent of cash flowing the place as soon as you can.
Best of luck.
-Andrew