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Updated over 11 years ago on . Most recent reply

User Stats

128
Posts
52
Votes
Taylor Shapiro
  • Flipper/Rehabber
  • West Hartford, CT
52
Votes |
128
Posts

J Scott says he pays 25-35% for labor. Does that include the GC's share?

Taylor Shapiro
  • Flipper/Rehabber
  • West Hartford, CT
Posted

First of all, I want to thank BiggerPockets and J Scott for teaming up and creating 2 fantastic books on flipping properties. I highly recommend people check them out if they haven't already. I'm just starting "The Book on Estimating Rehab Costs" and have learned quite a bit already.

For our rehabs, we don't use a GC. We hire our own subs and do as much of the work ourselves.

I've seen numerous rehabbers post that labor is typically 25-35%. Just to clarify, what is that a percent of? The total cost of material?

If I need to put $20K worth of work into a property, are you saying I should expect to pay anywhere from $5000-$7000 to my GC if I were to use one?

Would I tack on another % to pay the contractor on top of labor and materials?

(I'm a little embarrassed to be asking this- I've never had to look into using my own GC to this point though!)

Thanks again

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