Do contractors not get it;more you charge me the less I can flip

[Davon Lowery]

Dude, this is a symbiotic relationahip. 

Trying to start my new REI project, a flip in Milwaukee. Trying to negotiate with a contractor to budge on the plumbing costs, he wants 10k to pipe a 2,200 sqft. duplex, I need the number to come down to around 6k.

With all the things that need to be rehabbed, I've noticed the electrical and the plumbing are major areas of contention. Not only that we need to purchase furnaces and water heaters etc. 

How do you cut costs?

Is this your same issue? I would like to get a fair contractor, so we can make money for a long time.

[Michael Hayworth]

Aaaand....this is why my company stopped taking investor work, except for my own houses.

Reno costs what it costs. Labor  + materials + overhead + a fair profit for the contractor. It doesn't matter what you "need" it to be.

If two or three different plumbers tell you $10K, the cost is $10K. If two plumbers tell you $10K and one says he'll do it for your $6K, you'll probably regret it in the end. He's either planning to cheat you, or he doesn't know how to run his business and will either change order you to death or bail o the project.

I can't tell you how may conversations I've had with investors who've bought a house where ARV & rehab costs were based on hope & prayer, then get frustrated with the contractor because he can't stuff $50,000 worth of reno into a $30,000 budget.

The remodeling market is booming all over the country. Most good contractors have a backlog of work from homeowners paying retail. If you want work done from a quality contractor, you're going to have to have your ARV and reno costs in line, so you've allocated a realistic reno budget.