Do you use a contractor for rehabs? Why or why not?

[Devon Martin]

My plan is to house hack a MFH for my first investment. I’m 21 years old and have never lived away from mom and dad, so doing so will not only be my first experience with REI and being a LL, but also living on my own. My original plan was to use an FHA loan because I don’t have much to put down, but I’ve just found out about the 203K loan. I have a couple of questions about your opinion on adding a rehab into the equation. First of all, do you think that would be too big of a leap for me? I work full time so my spare time is limited, but I am willing to put in the work and research time if it could be worth it. I’m thinking this could be a great way to start with some equity to eventually use towards my second investment. Second of all, is a contractor worth it? I’m fairly handy, working with tools and making repairs for a living. I have multiple close family-friends who work on redoing interiors of houses for a living who I could ask questions. So, would doing the work myself be possible and worth the saved cost of a contractor? TiA for all the great advice you guys consistently give! -Devon

[Tony Cash]

I do all my work myself. It can be done although it’s a lot harder than it looks and will take a lot longer to get done. Just finished up my third property and just now hired some help but I still do most myself. I think it is a good plan when starting out and low on cash.

That being said all the above comments are correct. A contractor will be faster and probably better quality work. If you do choose to do yourself be sure to check codes as some things you can’t legally do yourself with a rental property.

I think it works for me as I don’t do 3 or 4 deals a year. I go at a much slower pace plus my town is really small so there isn’t a lot to work with at any given time. Plus the equity I get when I’m done is insane.