Hi Eric, I always post that everyone needs to be a member of at least 1 ideally a few local REIA groups. Find them in meetup.org, or google in general city name REIA, or state name REIA. I'm a member of GaREIA, they have a google group where experienced local inveztors trade tested (and mostly reliable) contractors, legal helps, strategy. The experienced locals are predominantly in local REIAs, not so much BP, in my views.
GC: no one that I know of uses a GC to rehab. Who can afford a rehab bill 30% even 40% higher then what has been an exploading cost environment. Flippig was nearly impossib le to make a profit in 2019, now in 2021, post doubling of lumber, nearly doubling of contractor costs, 50% increase in HVAC etc etc, no one uses GCs (that I know of). Plus they are all busy doing occupant custom remodels.
Flippers and landlords like me have alwyas been forced into being hands on, the crew chief, over handymen and a few licensed trades. The licensed pllumber pulls their own permits, the elctrician pulls their own permits. blabla. Some cities like Atlanta require someone to pull a general construction permit too, some to most don't. My rental rehabs have only once maybe twice pulled any permit. Rental rarely re-plumbs, or re-wires a house.
There is a class of contractor who is not licensed as a GC, just their own liabiity ins, who will sub to other sub-contractors. These are the types some flippers who do several flipps at once will use one or more above the rest type contractors. As you'd expect these giys are super busy an d you can't get a quote frpm them to save your life unless you said the magic words; "I'm desparate and will pay 2x the actual costs today for you to take this job". LOL! Recent quotese I'm hearing about basicall are this... 2x effect just to skim off the highest profit, if they are to drop other work, they will only replace it with high profit and easier work.
What to do, join the local reias, GaREIA has 2 flipping groups. Other REIAs also.
Get a list of subs for the trades; a handyman (or 2) a plumber, electrician, roofer, flooring, painter.... This is how its done.
As a rental rehabber (for my own portfolio) I just need; a decent handyman who can do simple electtrical fixtures, plumbing fixtures, fix leaks etc, an HVAC if I plan on replacing the system, a roofer if I need a roof (rarely), a painter, and a lawn guy to clean up the lawn. A handyman, hvac usually, painter, lawn guy...
Tossing out numbers to give you estimates;
I strongly do not recommend new folks flipping buy a junker 2/1, and expect to punch it out to a 3/2!!! This is alot of hard work, the hardest. Popping up is nolonger financially feasible, only popping out the back. Min cost today: $130k. yes $130k on up. Forget bids of $70k, even $90k to punch out, including increasing the exterior wall and roof line. Thats another tactic; low ball bidding, then cost increases mid-project.
A 3/1 or 3/2 rehab keeping the 3/2 exterior walls but moving interior walls; Maybe $110k. $100k would be tight.
A 3/2 -- 3/2 no walls moved; $90k is possible
A rental rehab; lipstick, no HVAC or roof, keep everything, paint kitchen cabs and scrub up bathrooms. New LVT flooring etc; $20k is tight. Add HVAC now $25k and this is tight.
If you are buy and hold; find the paper linked off my BP profile; how to buy a bullet proof rental portfolio.
PM/connect I can tip some contractors, if they even will answer their phones these days. :) I suggest you join the local REIAs though, one of the smartest things you'll do.
Beset of luck, curt
