@Joe StaffordWelcome.

I think the *intent* is so someone is not making an 'income' from their retirement acount (save putting 10K of labor into a flip).So, can you take off the screen and take it in to be repaired or put a nail in that piece of trim that is loose?

If your goal is to find cheap labor (which it should be) then be prepared to deal with a lot more headaches and excuses.

I hear from those attending that this has driven average returns on tax liens to 6-9%, but that's for financial institutions with scale that can hire cheap labor to visit every site (which is a must to ensure the property is in good shape), go to the local assessor's office and look up all the liens, hold onto the lien for several years, administer the ongoing payments and any foreclosure proceedings, and run pretty sophisticated spreadsheets that estimate whether you're going to get 6% or 8% return, based on economic forecasts, etc.

My contractor is a friend of mine, but he is relatively new to managing jobs (he used to work for my company as a laborer).

The contracted price typically includes materials & labor.

So he would be able to make ends meet even if we only had 1 rehab going.One of our motivations to make him a part owner rather then an employee is to avoide all the payroll and labor burden costs and headaches.

@Joe Gore I don't understand.

Joe Gore

Also I had other parallel tasks inside the house going at the same time.I did the initial measurements and design on the computer, started looking for materials and labor help.