Newbie from Desoto, Texas (DFW Metroplex)

[Daren H.]

Hello BP Members! Forgive me if I am not posting in the correct place. I will try to properly introduce myself because this is my first post and then I will get to the point of why I am posting in the Rehabbing and Flipping forum.

I consider myself a newbie even though I own a SFH that I have leased out for the past 4 years with positive cash flow and no tenant issues (they take great care of the home and not one late payment). I do not actively manage the property but I do actively manage my property manager to make sure the tenants are screened thoroughly, property is maintained, tenant needs are met, and tenant obligations are met. The SFH was my primary residence prior to getting married and moving into my wife's home so I became a landlord without really trying to be one. It wasn't until recently that I started to become serious about RE investing part-time and started reading more books, talking with my RE agent and stumbled upon BP (Cha Ching!). I work with a RE agent who is a RE investor and has a property management business (she was my agent for my primary residence, became my property manager, and now is my RE agent to find other investment properties).

I recently had my bid accepted for a SFH in Desoto, TX (3br, 2.5bth, 2 car garage). I plan to hold and rent the property. I have done my analysis and the numbers will meet the goals I have set for myself. The home is eligible for a Fannie Mae HomePath Renovation loan which I plan to use. Up until this point, I have mostly used handyman type contractors to do work at my current investment property and my primary residence to do work like painting, fence replacement, flooring, etc. The requirements for HomePath loan require contractors have adequate general liability, workers comp, and bonding. My regular guy who would normally do the type of work required can't meet the Fannie Mae requirements even though he is more than qualified skill wise to do the work (minus the foundation work). The property I am buying will require mostly cosmetic updating in the interior (drywall repair, painting, and flooring), minor exterior repair and painting, and light foundation repair. I had success in getting foundation companies to come out and evaluate the property, provide a formal estimate for the repairs, and have no issue providing the required supporting data for Fannie Mae. What I have been extremely frustrated with is the General Contractors (or people to put themselves out there as General Contractors). I have contacted a number of Contractors and Renovation Firms (from Angie's List, BBB, Yellow Book, etc.) in regards to doing all of the non-foundation repair work. I am baffled by the number of contractors who have turned down the work or will need up to a week to simply come out and view the property. I have heard everything from "not approved to do work with Fannie Mae, too busy, don't carry insurance, not comfortable with completing the Fannie Mae forms". On top of that several other GCs have come to the property to evaluate the repairs for estimating purposes, but seem to need forever (over a week) to provide a quote. I had one who finally responded to me and said he would be in Mexico for the next 3 months (I know what you are thinking, but he is more American than me, ha ha ha). How does one go about finding a good, legit GC who is competent, reasonably priced, and is hungry to get business? Even the referrals I received have stunk it up. How can I improve my experience in finding a good GC for renovation work? Is dealing with GCs just trial and error until you find the right one? I am particularly interested in hearing from members with experience in the DFW area but welcome input from the entire BP community. I am amazed by all of the knowledge on this site.

Sorry for the long post but this has been on my mind :)