Rehab Business Planning For the Future!

[Michael J.]

Hello,
I have a few questions related to building a rehab business and there are a few areas I am unsure of what to expect. In order to better plan out goals for myself in the future I was hoping some of you that do a lot of rehabs per year could take a few minutes and help me fill in a few gaps.

A little background: I work full time, my plan is to build a rehab business and transition to that full time and build a rental portfolio at the same time. Long term goal is primarily to build a nice large rental business. I have some rentals and have rehabbed some rentals but no retail rehabs under my belt yet.

What I would like to do if it is feasible is get to where I can sell 12 rehabs a year, one a month average while working full time and then move to 24 a year as a full time business. I have project management experience not related to construction and a family member that has many years of residential construction experience that will help with some of the general contracting and management during day time hours while I am working full time. I will handle most of the GC’ing all of the planning and hiring contractors ect. family member will help fill in the time gaps due to working full time and help guide me with what I am not familiar with.

So what I am trying to figure out is….

I plan to act as the GC at first until I can get up to about 12 rehabs a year. I have no problem with using a GC and will most likely in the future and focus more on the business side. I am not planning on doing any of the actual work on the rehab (labor), which is hard because I do have construction and remodeling experience 

1. 
   1. Is it feasible to manage 12 rehabs a year if I self GC them and work full time? Once I get to 12 in a year I will most likely do it full time.
   2. In order to sell on average 12 houses in a year how many projects would you need to have underway at any given time? I figured I would need to have 3-4 projects going at a time to be able to sell one a month on average.
   3. Is it feasible to manage selling 24 rehabs a year without partners and GC’ing myself if I am doing it full time?

In my area I have been told you can get an average of $15,000 profit a project WITH hiring a GC.

1. 
   1. For those that sell a lot in a year do you hire a GC or project manager for all the rehabs?
   2. Should I bite the bullet and try to hire a GC or PM out of the gate? I like the idea of getting more GC experience.
   3. Given a margin of about $15k with a GC or $25k - $30k self GC’ing would that effect weather or not you hire a GC or go solo?

Marketing for 12 – 24 properties a year. I know it will vary a lot from market to market but….

1. 
   1. In order to purchase 12 rehabs a year using primarily mailers and website SEO how many letters a month do you think it will take to get to 12 properties a year?
   2. In general what response rate do you usually see like 1%, 3% etc.
   3. Out of the response rate (see above) how many usually turn into deals?

Thanks for any advice you can offer!