Bring in an out of state crew to reduce construction cost?

Question

I own a ~6200 square foot house on Martha's Vineyard that I would like to renovate and sell. Construction costs on the island are insane. I was speaking with an experienced flipper / investor this morning who thinks the cost isn't based in reality. It's more just that houses are already expensive, that it's a vibrant vacation destination, and builders decide to up their prices because they can. What I'm looking to do is bring in an out of state crew that does high end flips and be able to renovate for a reasonable cost. I came across a big luxury flip done in Vegas, where no detail was overlooked. It is absolutely beautiful and the rehab cost was ~$180k. Is it possible to bring in an out of state crew and pay them what they'd make in Vegas or slightly more? If I hire on island it could cost over over $1M. Open to any thoughts / ideas. Thanks!

Will Barnard · Answer

As mentioned above, you have too many obstacles - Licensing, housing for crew, travel costs (including getting their tools and equipment there). Materials will be costly no mater what so any cost savings on a less expensive crew would be lost and then some in the logistics. Then there is the experience and knowledge of the area which they will lack. I concur - bad idea.

Aaron Schrader · Answer

I'd add that I feel like I'd want my contractor to be local, if only that they have more reputation skin in the game.  If the out of state guy sucks, he's got less to lose I'd think.  And call backs?  That's gonna be hard to get a guy to want to come back in from out of state.  But then again, your states are smaller out there and it takes less time to travel :-)

Bruce Woodruff · Answer

They absolutely will have to have the correct license/insurance/bond. Even if the two states have reciprocity, it will take a long time. Then where will you put them up? Are you going to bring in a GC, his crew and all of his subs? You'll be paying thousands a night for food and lodging.

Sorry, bad idea....

Matt Ternullo · Answer

Hey Jackson - I also own a rental property on Martha’s Vineyard and am a listener agent here. Would love to connect as there are not many Martha’s Vineyard investors on here.

Cameron Hale · Answer

I have experience with this, but not in Martha's Vineyard. A big question will be if the crew can find housing to stay in Marthas Vineyard for the duration of the job. Depending on motel/lodging costs (not too many in MV) this could be an option. If they have to ferry down and back every day this will obviously increase the price, if for nothing the pain of doing that every day. As another poster mentioned, they would likely need a MA license.

I could see it being done cheaper with a crew from just outside the cape, but I think out of state will be a bit tricky.

Colin Williams · Answer

@Jackson Sandland I'm not sure that would work. The crew would have to be licensed to work in MA. Travel expenses and the cost for them to stay somewhere will get quite expensive. I live on Nantucket and there are plenty of crews that come over everyday, but they aren't traveling from out of state. They come down from just off Cape. Also the cost of materials are still high.