Managing a BRRRR from (kind of) afar

[Paul Witte]

I close on my first BRRRR next week--a duplex in need of 40k of repairs over the next 6 months. Both units are rented through next year (including one to a tenant with an ankle bracelet who hasn't paid rent since April and is not going to be super cooperative with anything). Anyways, I live 2.5 hours away from the property, and going down there is possible but a headache.

I am considering options about how to manage the rehab process.  I've got a number of processes figured out, but I can't figure out how to inspect contractor work before paying them without relying (and paying) a PM to do it.  Having a reliable handyman helps, but they are busy and work all over and can't just run over to a site whenever a contractor calls and says they're done.  Relying on a contractor to send photos seems like a bad idea.  

[Jim K.]

@Paul Witte

Paul, you've been sold a bill of goods if you believe managing this BRRRR from afar (for your first time) gives you a good chance of getting a renovation in at or under budget and properly done. Some areas of the country are worse than others. Anywhere around here, I wouldn't give a tinker's damn for your chances. If you're going to do this, you should be prepared to sleep in the driveway of the place for weeks and possibly months. And even then, I wouldn't give much for your chances if you don't have the construction knowledge to GC this yourself and vet the subs while they're working. A good 99% of people doing their first BRRRR certainly don't.

Is it possibly you'll get through this smelling like roses? Sure. But not likely, and if you intend to run a string of this you're going to need the kind of luck to pull it off successfully that only Publisher's Clearing House winners ever experience, 1.7 billion:1 odds, six times worse than your odds of winning the Powerball jackpot.