First rehabs approaching - what do I need to do first?

[Christina R.]

I'm getting ready to do a "2-fer" and, with a partner, rehab two homes for rentals.  My partner is experienced and I intend to ask him the same question I'm asking here (and I know he will thoroughly educate me which one of the many benefits of partnership)  but thought I'd open it up to the BP nation to get all responses (which are most appreciated).

This will be my first rehabbing experience.  Excited and nauseous at the same time . . . lol

These properties are literally a block apart  & we hope to scale our resources and rehab them simultaneously.  We have our partnership structure sorted out.  We have our exit after rehabs worked out.  It's all the million things in between that make my head swim  . . . so as a newbie to this phase of this type of investing....

what  do I  do next?  I mean this in terms of -

* tax prep - what do I need to get in front now  before we take title that helps me at tax time next year?

* software or spreadsheets that will help track expenses - what do people suggest (I'm not a techy and don't have time to create something from scratch)

* chain-of-custody on working with contractors i.e., paperwork, documentation, etc.

* at what stage do we hook up with property management and aligning all that so we can rent out as soon as feasible after finishing the rehabs?  Does this strategy differ at all if we are using govt funded tenant programs?

* builders risk insurance . . .

* 

* I will be holding these in my name as t-in- co n title after we refi out. . . .ironically I received an umbrella policy as from our car insurance agent yesterday . . .what is a recommended amount to hold?  

And a million other things I just can't pull up from my brain.  I searched a little on the engine - I'm hoping someone can paste up a thread link that encompasses a lot of these questions.

thnx in advance

[J Scott]

First, these sound like big rehabs, so make sure you're working with someone you trust and who has done at least a couple rehabs in the past...  :-)

Regarding your specific questions:

-  In terms of tax prep, there's not much you can do if you'll be holding in your name personally (which you need to do if you'll be getting a FNMA loan);

-  In terms of spreadsheets for tracking expenses and scope of work, I'd let your partner handle that, since he has experience with rehabbing

-  Likewise in terms of documentation, contracts, etc. -- let your partner take the lead

-  I would get in touch with the PM as soon as you start the rehab.  That should give him plenty of time to be ready to fill the units as soon as they are ready.  Though, in reality, they'd probably be just as prepared if you called them just a couple days before the units were ready to go on the market

-  As for builder's risk, if your partner has done rehabs before, he'll have an insurance company that he uses

And, for the record, I don't mind you telling people that we're partnering on these...  :-)