All Forum Posts by: Matthew Banks

Hi, my background is in BRRRR investing, with experience doing several extensive rehabs, but I'd like to do a couple new builds. I own a vacant lot suited for a single family and would like to begin work on it next year. I enjoy this work overall and plan to go full-time. Is it realistic to setup and manage a business that does a mix of new construction as well as BRRRR/Flip projects? Any advice appreciated!

 I like Dennis' answer. I've taken a similar role on a gut rehab acquisition. It is important to have an agreement in place, and to make sure you've covered all areas of the project, from acquisition thru to sale.

I've done about 10 rehabs of residential property and currently own 5 rentals. We're rehabbing a mid-century modern rental at the moment. I also own a home that I plan to rehab next. We enjoy the projects and the work and I'd like to make this a full-time business. We've mainly bought properties to BRRRR and will continue to do so, but adding flips would allow us to do more projects and generate more income beyond the cash flow. We typically work in the $200-400k price range, though there are higher priced properties in the area that I'd be interested to do.

Any advice on how to professionalize our flip/BRRRR business:
- minimum profit target $ or % of ARV? ($20k on a $250k ARV?)
-number of flips per year? (plan to do 6 initially @ $250-350k ARV each?)
- time frame for a rehab (max 2 months for kitchen, bathrooms, painting, floor refinishing, updating all appliances & fixtures?)
- how many contractors to have available (minimum crew of 2 painters, 2 carpenters, 1 electrician & 1 plumber & 1 HVAC if needed?)
- how to manage project design documents, invoices, receipts to track 2-3 projects at a time

- any other advice would be appreciated!