First Flip - coming soon?

Question

We've had rentals, in Memphis, for a handful of years and now want to do a first flip. One problem, I've had with the rentals in the past, is finding relaible contractor/handyman people for rehabs and repairs. So, that's what I'm looking for now. Can anyone point me in the direction of someone that's reliable, honest, reasonable (a fair price) and does what they say they will do and can do an inspection? I have found people that are relaible but expensive, inexpensive but not honest, unreliable, don't show up, need to redo the work, don't complete the work, etc...

I should be in position to move forward on a flip in late winter/early spring, so I thought I need to start laying the groundwork now. (Since the last 7 years hasn't produced much in this area). And it makes it more difficult being out of the area.

Thanks for any info or leads.

Bob

I should be in position to move forward on a flip in late winter/early spring, so I thought I need to start laying the groundwork now. (Since the last 7 years hasn't produced much in this area).  And it makes it more difficult being out of the area.

Thanks for any info or leads.

Bob

Jackson Long · Answer

@Chelsea Canning it is easy to sucked into a bad quote in Memphis.  Knowing you are remote and powerless a lot of companies will just throw out an absurd number and risk you walking away because enough people will just agree to it.  I think it is a morally objectionable business tactic- but it is very very common.  That old "get three quotes" thing is your best insurance even though it can be difficult to execute on.  Both from a "he seemed honest why not just move forward" standpoint (I've been guilty of doing this too) and a "you can barely get guys to show up to even give you a quote" standpoint.

Let me know if I can help with anything.

Don Gouge · Answer

The way you worded this tells me a lot. Seems like you have found good, honest, reliable contractors in the past but they were expensive. You have also found cheap contractors that were unreliable and dishonest. Seems like the pivotal point has been what you were willing to pay and your definition of fair.

I will be the first guy to call out a contractor for overcharging but, like anything else, skilled labor is a supply and demand commodity. In this age there are all kinds of people willing to sit behind a desk and draw a big check because they feel they are entitled because they have spent a fortune on college. The problem is that there is no longer anyone to build the desk for them to sit behind.

I didn't mean to unload on you but the bottom line is that you are either going to have to pay the going rate for quality or learn to do the work by yourself.

Chelsea Canning · Answer

Thanks Bob…I thought so. My first house I purchased through them. They were pretty easy to work with and are a well oiled machine. I was on their wait list for another bc I also like the no hassle. They aren’t turning them out like they used too so I bought and rehabbed my own.

Bob Beach · Answer

@Chelsea Canning Yes, they do.  That was our first house in Memphis.  Then decided to buy houses that were not turnkey at much lower prices and rehab to rent. I believe, that's why their pretty much invisible since the house is, for all practical purposes, new. So not much goes wrong.  Those are the kind of houses they seem to like.  Less headaches for them.

Chelsea Canning · Answer

Thanks Bob! I’ll check them out. Doesn’t Midsouth also do turn-keys?

Bob Beach · Answer

@Chelsea Canning  The two PM's that have been trouble free lately are RJ Property and Midsouth.  Midsouth is more picky about the houses they manage but are a fine-tuned machine.  90% of the time, these two companies are invisible.  The only time I notice them is, once a month, I have two deposits in my account.

Chelsea Canning · Answer

Thanks Bob. I appreciate the response. I paid $3500 for the roof and about $2500 in total for the flooring.  I paid $1800 for the same flooring plus install in Los Angeles, which seems crazy. I was having a hard time swallowing that but it seems although the costs of housing in Memphis is low, labor is more costly. Good to know!

Any luck on a good Propery manager?

Bob Beach · Answer

@Chelsea Canning  So far, we've been lucky, not to replace any roofs. So, no idea.  Let us know, when you find out.  But flooring, yes.  We did a couple houses with vinyl plank flooring instead of cheaper carpet. Last longer and tenants have more trouble ruining it. Never did a whole house but a 1200 sq ft house, for 3 bedrooms and the hall was in the mid $3k area. But cost us a little more due to more expensive prep work (old flooring removal). Hope this helps.

Chelsea Canning · Answer

I’m having the same problem. Maybe you can help by telling me what a typical 900 sq ft house roof costs.  Or flooring install for said house?

Reed Rickenbach · Answer

Hey @Bob Beach - I am an investor/agent in Memphis and have completed a few rehabs. I have experience with a few crews, feel free to shoot me a message and we can hop on a call.

First Flip - coming soon?

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