BRRR and Hiring General Contractors in Florida

[Stetson Miller]

With Florida law highly limiting your ability to work as your own general contractor, does the BRRR, or any other similar rental strategy, allow you to avoid the cost of hiring a GC? As the Owner/Builder Disclosure statement reads "[The property] may not be built or substantially improved for sale or lease. If you sell or lease a building you have built or substantially improved yourself within 1 year after the construction is complete, the law will presume that you built or substantially improved it for sale or lease, which is a violation of this exemption." In this case, is the word lease synonymous with rent? Also, the way it is currently written, the law would allow you to be your own GC for a remodel, live in it for a year, and then begin renting it out, correct?

What projects would you consider hiring subcontractors for without first going through a GC?

[Greg Dickerson]

Originally posted by @Stetson Miller:

With Florida law highly limiting your ability to work as your own general contractor, does the BRRR, or any other similar rental strategy, allow you to avoid the cost of hiring a GC? As the Owner/Builder Disclosure statement reads "[The property] may not be built or substantially improved for sale or lease. If you sell or lease a building you have built or substantially improved yourself within 1 year after the construction is complete, the law will presume that you built or substantially improved it for sale or lease, which is a violation of this exemption." In this case, is the word lease synonymous with rent? Also, the way it is currently written, the law would allow you to be your own GC for a remodel, live in it for a year, and then begin renting it out, correct?

What projects would you consider hiring subcontractors for without first going through a GC?

Yes leasing is renting 

 You are much better off hiring a GC unless you are doing basic cosmetic work that does not require a permit or GC like flooring, paint, roofing, cabinets and tops etc.