Help Me Hire A Basement Rehabber.

Rehabbing & House Flipping
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Help Me Hire A Basement Rehabber.

Amy Zemser
Investor · Kingston, NY · Member since 2015 · 65 posts · 39 votes

Hi Fellow Big Pocketers! 

We're doing a basement rehab, turning it into an Airbnb. I've considered hiring a contractor to do the whole job, but numbers came in so high that I started over and began calling the smaller outfits -- you know the ones. The dad who just works with his son and comes in cheaper. I'm getting names through friends, but was wondering what would be the safest and most effective payment style. Half up front, half at the end? Thirds? How do I protect myself there? 

Also, I kind of like being my own contractor! Would anyone like to weigh in on that? What if I just oversaw the whole operation and hired guys step by step? It's a basement living space, utility kitchen, and bathroom. Isn't the order of operations -- 1. Plumbing, 2. Framing and Insulation, 3. Electric,  4. Walls, 5. Floors. I like working with people. Perhaps I could hire people for what they do best? 

I'd love to hear from those that have worked with renovators on a more regular basis. 

Thank you and all best,  

Amy

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  • Franklyn Williams
    Real Estate Broker · Nassau County, NY · Member since 2019 · 22 posts · 11 votes
    7y

    Hey @Amy Zemser, as a passionate renovator who has learned much from my dad (on one of those father/son team), I can tell you that you can structure your arrangements anyway you and the contractor desire, even in thirds, though most contractor will prefer a reasonable initial deposit sufficient to get materials and pay initial labor costs.  You can also put your expectations, costs, type of materials, scope of work, etc, in signed writing for additional protection. You can also manage individual subcontractors though it's more folks to deal with, more agreements, more negotiated access to your home, and possibly more costs (as all will want a reasonable profit margin on the project since there's no making it up on another task).  

    Also, you listed the work in the right order for the most part, though the framing goes first since that will determine which side of the basement will be a bedroom, a closet, a bath or a kitchen and hence where plumbing - which goes between the wall studs, ceiling joist, or under, say, a concrete sub floor - will eventually go. Once the framing is done, plumbing and electrical are installed in the appropriate areas, certain external facing walls insulated, dry wall/Sheetrock hung, plastered, and painted, and finally flooring laid, refinished, or installed.  Home Depot has a great book that would be helpful.  All in all, if you're willing to learn, you can do anything and the experience you gain will be invaluable.  Hope that helps and best of luck.

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  • Amy Zemser
    OP
    Investor · Kingston, NY · Member since 2015 · 65 posts · 39 votes
    7y

    This is great -- thank you so much. I'm leaning toward just buying materials myself and then hiring someone to start building. What do you mean by "all will want a reasonable profit margin since there's no making it up..." Are you saying if I buy the materials myself and hire someone, say, by the hour, that they won't want to do the work? I'm thinking this might be the way to go, since our budget is so low. Thanks so much, truly grateful. 

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  • Franklyn Williams
    Real Estate Broker · Nassau County, NY · Member since 2019 · 22 posts · 11 votes
    7y

    Hey @Amy Zemser, a contractor doing much of the work may not mind making a very thin profit on one or two tasks (say, insulation, painting, electrical, etc) because that contractor will make a reasonable or compensating profit on, say, laying new floors or hanging dry walls (both of which can be labor intensive and take days). When you hire out the project separately, each subcontractor ("subs") will want to earn a profit which could be more than what a contractor doing most or all of the work would charge.  That said, 5 subs can do a better and cheaper job than one overall contractor.  There isn't a right or wrong way to do it but generally folks may give you a price break on some tasks when they are doing additional tasks. Getting and comparing prices is the key. 

    If you decide to buy the materials, you can ask the contractor or sub for estimates with and without materials.   If you choose the option without materials (i.e., just labor), ask the contractor to give you a list of what you need and where best to buy them (bearing in mind that they may ask for additional materials as the project unfolds). 

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