Using contractors for every step of rehab on long term properties

[Anthony Wienke]

Is it feasible or even smart to use contractors for every step of the rehab on a long term investment property? I know several people would agree that doing some of the work myself would be smart but I just don't live close to many of these investments. Another thing is that im a bit of a newbie when it comes to repairing and rehabbing buildings.

Im not looking at doing house flips but would like some rehabbing done in order to hold onto the properties for the long haul. Some of these investment properties im looking at are about a 2 hour drive away from me.

So what does the BP community have for suggestions on this matter? Do some of the work myself or let the contractors do all the heavy lifting for these distant(ish) properties?

[Valerie Hiscoe]

It's popular knowledge these days that it's better to work 'on' your business rather than 'in' your business, and that 'is' my end goal, but I'm going to go against the flow here a little bit and introduce a few caveats that personal experience really forces me to mention. Namely, the problem with not having a hand in renovations on your property is that people can and will take advantage of you. Especially if you're having work done from a distance.

Maybe it's coincidence that the people who have responded to your question are either contractors themselves or are very experienced with construction - but $80k plus or minus $30k, and 2 months plus or minus 6, is worth your while to spend some time on educating yourself.  I'm not talking about how to paint a wall or change a faucet, and I know you're renovating this property for a long term rental not a flip, but when you're on the brink of making such a substantial investment - from a distance - trust and references can only take you so far.  I still think it would be beneficial for you to order The Book on flipping houses and The book on estimating costs. (And there's even some kind of special deal on July 4th if you order from Bigger Pockets.) You'd learn things like the average mark-up a GC charges for his subcontractors, for example, as well as a whole lot more.

You might not need to actually 'do' any of the work on your property, but having the knowledge and confidence to check on the work being done is pretty invaluable and puts you in a position of a lot more power.

No offense to any of the GC's out there!