How many contractors is too many?

[Eric C Henry]

Hi all! I am in the process of rehabbing my first house for a fix and flip investment. The house needs a good deal of work. Most of the contractors I speak with want to take on the job of fixing the whole house and subcontract any projects that aren't in their area of expertise. My question is: should I find one GC that I am comfortable with and let them manage the rehab; or, should I manage many contractors and only award projects to the ones that specialize in the task(s) at hand. What seems to work best for you? Thank you! 

[Matt K.]

A GC should have better connections and resources than you would and in theory do better at cost management. I'd go the GC route but I'd get multiple bids and see where they come in. I'd eliminate any outside of the established competitive range... and if you're experienced enough maybe you and your partner should make your own independent estimate to compare. This would only work if you guys have the experience/knowledge to do so ... otherwise it'd mess up the market data.