How do you determine a scope or work and what materials to buy?

Question

Hello, my husband and I are looking to do our first rehab in a different city than where we live (we live in Austin and looking to buy in El Paso), and are wondering how one determines and writes a scope of work and determine what material to buy for what. Does this all come from the general contractor? How does one define design choices, etc?

Second question is, if we don't live in the city we will invest in, we understand we will have to be traveling often, but who could be a good person to check in on the construction so we don't have to go every week? Would that be a property manager? Is that on the general contractor to keep us posted? Or do we need to travel every week?

Any advice on the process above would be greatly appreciated. Thank you!

Drew Sygit · Answer

@Sofia De Santos Tavarez if you haven't already, have the property professionally inspected.

This should catch MOST of the structural, health & code issues - but not all.

As others have stated, your fit & finish goals should be guided by whether you plan to:

1) Rent: tenants don't always take care of a property, so you want to use lower-grade materials and workmanship.

2) Flip: higher quality on workmanship and materials is usually required.

Regardless, you always want to "Maintain to the Neighborhood". So, scope out the competition on #1 & #2 above to understand what the rental or sale market expects.
- You will lose money if you go overboard!

You haven't even asked about your BIGGEST challenge - finding "trustworthy" contractors.
- Most contractors will cut corners, or worse, once they figure out they won't be watched closely:( Your job will also go to the bottom of their priority list.

Monitoring progress is relatively easy: hire that same inspector to go by weekly or before any payments to take a VIDEO of:1) What was done2) Quality of workmanship

One other thing you didn't ask about, payments to contractors.
- They all want 50% down or as much as they can squeeze out of you.
Recommend RARELY to agree to that! It automatically puts you upside down with them.
The excuse contractors always give is that they need the funds for materials. Take that away by making it clear you will pay for, even supply, all materials. Then they won't need an upfront payment for work they haven't provided yet.

Also, get a signed contract, copy of the drivers license, contractor's license and be added to their liability insurance. Document every communication in writing! Even after a verbal discussion, send an email asking them to confirm you understood them correctly.

Good luck!

Frank Pyle · Answer

Yes, the roles of a project manager and a property manager differ significantly. A project manager is responsible for overseeing your remodeling project, while a property manager handles the overall management of the property, including maintenance, rent collection, and more.

Melanie P. · Answer

@Sofia De Santos Tavarez Why are you going to El Paso? If it's because the property is cheaper out that way it's not a good reason. You'll have proportionally less upside and thus less room to cover errors and overruns on a project with a new team you'll be far away from.

Chris Seveney · Answer

Is this a rental or flip?

Design choices should come from you and you should discuss them with the GC as part of the bidding process. I would not let a GC pick finishes - especially if its a flip - if anything get a realtor to assist.

In regards to doing this from afar, I recommend hiring a project manager for a few grand per month to oversee the project for you, if not you are relying 100% on the GC which is not something I recommend.

Lorraine Hadden · Answer

Unless you can handle all aspects of the project yourself - I would hire a general contractor (GC) for the rehab project. The GC can handle the entire project, coordinate different subcontractors and make sure the project is completed per building codes - especially if the rehab is complex or involves multiple trades like plumbing, electrical, and carpentry.

Jake Baker · Answer

@Sofia De Santos Tavarez

I agree with @Lorraine Hadden that hiring a GC is the move. A good GC is essential, especially for remote projects. The GC should help you determine the scope of work and provide a list of materials based on your goals (e.g., rental vs. flip) and the property's target market. To streamline design choices, create a design guide or "mood board" beforehand to stay consistent with finishes that match the neighborhood's expectations.

For monitoring progress, a property manager can sometimes oversee construction, but it’s typically better to rely on the GC for updates. Set clear expectations with them upfront—weekly reports with photos, videos, or virtual walkthroughs work well. Tools like Buildertrend can also help you manage the project remotely. And you're right about avoiding weekly travel—sound systems can save you time and stress!

Jim Daniels · Answer

A good GC would be a great fit to being the person to give you updates while you are away from the project.

Melanie P. · Answer

You'll have the same potential upside range wherever you do it - 10-40% are probably the outside ranges. You just have to decide if you want that to be of a property you acquired for $150,000 or $400,000. The math is obvious but there's a natural tendency to go for properties you can obtain at a lower basis. Start networking with wholesalers for more opportunities in your home area.

Bruce Woodruff · Answer

I was thinking this too. Austin is more expensive for sure, but way more upside and you can handle a lot of issues yourself!

Bruce Woodruff · Answer

The best way to develop a solid SOW is this - you start off with what you are visualizing in your head, send drawings, pictures and products that you like. Be specific...."I want to refurbish the entire house, including a complete kitchen and baths renovation, add an addition on the east side, new roof and siding, new flooring everywhere, paint inside and out"

Then ask the GC to go over and put this into a more formal document. Then you go over this and further expand the minute details, then send back to the GC until it is complete. I would add specific details like pictures of the fixtures/flooring/cabinets.....SKU #s and pictures of everything. You literally cannot have too little detail.

Make this document 'Exhibit A', everyone signs it, and attach it to the contract.

A Project Manager is different than a Property Manager. If you cannot make the trip every week, then hire a Project Manager (like a retired GC) to be your voice in this process. Alternatively, if you can find a great GC who you trust, then you won't need anyone else.

How do you determine a scope or work and what materials to buy?

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