Managing Rehab - Remotely

[Faisal Mohamed]

All,

We are planning on doing a REHAB that will require all new plumbing, roofing, flooring, foundation, electrical, etc. We will be going sparingly on the weekends to see progress but for those of you who do out of state investing and rehabbing, how do you guys manage construction projects remotely? How do you ensure that the work is done satisfactory ? Do you leverage your future property managers ? Any advice would be appreciated! 

[Alora Glaze]

If you have any concerns about your contractor(s) - and you aren't going with a larger construction company that can hire subs and manage the project entirely, then make sure to piece out the work. Putting all your eggs in one basket can be risky, especially if this is your first OOS-rehab. 
Always make sure to fully vet contractors by completing a background and even a credit check to ensure they don't have liens or other issues that may result in a financial loss. Remember, you typically pay for the quality you receive.

Depending on your relationship with the contractor(s) - ask for picture updates as items are completed. Limit your time on-site to bi-weekly visits and be the QA (quality assurance) specialist for any items being installed; make sure they aren't using cheap, off-the-shelf items (i.e. cabinets/flooring here could be a concern) that would hurt your ARV instead of increasing it. Inspections are where the hiccups happen most often, so just ensuring the standards are on par with pictures and with periodic check-ins, you should be good to go.

Never miss an opportunity to turn an issue into a learning situation, especially when it comes to rehabbing - you can't always anticipate if things will go wrong, but doing the necessary research and due-diligence prior to undertaking a contractor, will certainly help. 

Best of luck to you!!