The BRRRR STRATEGY!!!

[Kyle Green]

What are the benefits of using a contractor? My father and my uncle do amazing work for cash on the side. Is there tax benefits to using a contractor? Or is it better to save money by having someone else do it for cash when time frames aren’t a major issue

[Jon K.]

@Kyle Green It depends on a few factors. How much money are you saving, is the type of work that needs to be done the type of work that needs permits, and how long would it take your father and uncle vs a team of professionals?

The tax advantages of using a professional is that they'll provide receipts and invoices that you can then use to deduct the cost of their labor from your taxes. Also the sooner the work is done, the sooner the unit will be rented. If you know what the unit will rent for you can even put a daily rate on the lost income IF it takes your Dad & Uncle more time than it would take others. And then there are permits. If you're doing work that should be permitted and don't pull them it MAY lead to trouble down the road. Different states have different rules regarding that so do your research.