To GC or to not GC

[Santiago Rodriguez]

I am looking a deal where the property needs a lot of love, but the way the property is priced, it seems that between the cost of acquisition and labor + materials to rehab it, I may end up coming out of the deal with not a lot of equity. Aside from getting equity on the buyside. Is it smart to manage a run your rehab without a GC. 

The project I am looking at is a ~2800 sqft property. Needs basically new everything inside + a little outside. What is the price of that these days. 

Would love some referrals advice, etc. 

[Ghassan Jabali]

Hello Santiago

I hope you're doing well. I would agree with Zach's answer. If the numbers work it can be great to acquire any property, big or small in scope. Growing your portfolio and gaining experience is important. We would not normally recommend doing rehab without a General Contractor unless you yourself were experienced as a General Contractor to handle all the work. Having a General Contractor that is also licensed and bonded can also insure the level of quality and have insurance to go after should any mistakes be made.

Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.