Owning a Home Remodeling Company to do your own flips

[David Roe]

Strategy; Owning a Home Remodeling Company to do your own flips

I am finishing house number 2 for the year but this is my 3rd house and 4th investment property. I have done most of the work on most of my projects. My first house I bought was a repo and it was a total gut job and I did most of it. Military service = Power Pro (Bare Base power Plant/Electrical) and AGE Aerospace Ground Equipment Mechanic. I can do Gas/Diesel Engines, Turbine Engines, HVAC, Hydraulics, Air Compressors, light carts, Air Craft arresting systems… and more… I am currently a Program Manager on a 30Million contract on base and know how to manage programs, people, and money. I have no interest in doing the manual labor any more. My current strategy is to buy and hold, I have two AirBNB rentals and a traditional 12 month rental. Currently doing the BRRRR strategy but I am willing to do a BRRRR where I break even and not profit but get a free rental. (
Long Term Gain)

My Question here is that I have hired a few contractors and they all seem to suck in the end in some form or fashion. Paying top dollar for the labor of course cuts into the type of houses I want to do. So I have started to look into just buying an existing Contracting/Home Remolding company. I found one that Grosses 650k with a 75k cash flow. My plan would be to purchase this one or a different one and use them to do my rehabs (3-4 a year) along with the current work the company already does each year. With that said I may have to hire another worker but I am curious if any of you already do this. How your Investment Company pays the Rehab Company and tax implications involved with doing so Especially with Flips and capital gains. I mostly want to do this only for my rehabs but buying a company already profitable makes since to keep the employees Employed while not completing a flip/rehab… But also would have a team I know will do it right and not break the bank.

What are some things I should consider, look for, think about etc…

Dave Roe