Stick with a GC? or Run this rehab? Philadelphia BRRRR

[Garrett M.]

Hello my fellow BP'ers! After 2 SFH gut rehabs using a GC, I am considering doing number three on my own and subbing out the different parts of the project. As home prices climb, I'm finding it's harder to make the numbers work doing BRRRR deals. Has the landscape shifted? I am still trying to not leave any cash in the deal after I refinance out. Are other investors ok leaving money in BRRRR deals? Lately in my market, it seems like the going rate for a gut renovation is $75 a sq. ft. I think I could maybe do better by parting out the job. Am I totally wrong on this? I know the whole idea is to work ON your business, not IN your business... but investors who are also general contractors save a ton on the rehabs. I have been in and around carpentry and remodeling for 20 years. I am not a general contractor but I know enough to organize the schedule and sequencing to properly in roughly what they should cost. I won't get their prices from trades I may hire but maybe I'll split the difference. I'm in Philadelphia so I'm particularly interested in what permits I will need in order to do this right. I think I would have the electrician, plumber and HVAC crews pull their own permits. Will I need a general construction permit as well? I appreciate your insights! Thanks

[Tony Gunter]

I think this is common now almost everywhere.

Market is at work on both sides of this issue. Market squeezing the numbers on properties in general for all buyers, not just investors. Market conditions for contractors has improved greatly as well, so they can squeeze more money out of the owner for the work being done . End result for the investor is being in the "rock and a hard place" situation. It leaves little meat left on the bone for investors. Or at least that can be the situation.

Pointing out the obvious here I guess. I think you have to explore the potential loop holes and get creative.