GC Costs

[Josh K]

Hi all - I'm a new investor here and am just starting out. I want to get into rehabbing properties and for my first one I want to flip my own house prior to moving in. Since I plan to live there for at least the first year, I want to take advantage of one of the programs available to owner-occupants called the Homestyle Renovation loan (similar to 203k but conventional financing instead of FHA). One of the problems with this product is they require you to use a general contractor for all the work. My preference would be to be my own GC - by hiring out the different subcontractor trades and pulling permits myself (and maybe doing some light finish work myself). I want to do this because I think I can save money and I like to maintain the control. Of course I have a full time job and I realize managing a job this size will be a struggle - I have some construction background but I've never owned my own home or overseen anything like this.

I estimate there is about $80k worth of labor and materials if I manage the project myself. My question is, how much more will I spend if I hire a GC to complete the work? I'm trying to weigh the option of using HML - if I go that route I pay much more in interest and points, but I save on the GC costs. If I do the homestyle reno loan, I pay more for the GC but less in points and interest (and maybe save myself a big headache trying to manage my first big rehab job all by myself). Then there is another big consideration which is time to close - I'm told the homestyle loan can take 45-60 days to close whereas HML can close in 14. If the seller needs to close fast I might lose the house by specifying a 45 or 60 day closing in my offer.

Anyone have any advice for someone in my situation?