Hire an employee for maintenance and rehabs?

[Rick H.]

Hi everyone,

I have found a very good handyman with experience in apartment rehabs. He does fantastic work for $15 per hr, but, alas, has neither health nor liability insurance. Thus, I am considering hiring him as an employee. My plan is to start focusing on fix and holds. I have a bank that has agreed to work with my on the rehab costs. I have a 3 unit under contract now that needs quite a bit of work. I also have 3 other buildings with a total of 8 units (all older and in need of regular maintenance). So my question is, does it make sense for me to bring on an employee at this point? Or should I wait until I grow my business further? My understanding is that after all the taxes and insurance I would basically be paying him $20 per hr, which I still think he is well worth. It would be nice not to have to constantly deal with contractors. This guy gets it done without constant direction. Your input is appreciated.