Sod is so expensive even for the material then the labor is thousands.

Labor and material costs in the Bay Area are on average $200-$250 per SqFt for brand new construction, so that's where I'm at a loss - even for a rehab of 3k SqFt, it shouldn't be that cheap.

However, instead of the market being strong through mid October (Columbus Day), in these smaller markets the season slows and lots of storefronts have their final sales and close after Labor Day.

Travelling workers such as nurses, professors, or people doing skilled labor.  98% of my renters are travelling contractors. 

Originally posted by @Joe Splitrock:Originally posted by @James Wise:Originally posted by @Mal K.

I would add that I have used a reputable HML lender that does front some of the construction costs but of course, not all, 3 draws of 1/3 the construction costs were provided, the first draw within the first week of the loan(the subsequent draws required third-party inspection of course) and the draws specifically state they are for material, not any labor, so a first time HML investor needs to be prepared with additional liquid cash assets as you may have to float some of the construction contracts as you mentioned being that most contractors want up to half of the contract cost up front.

The guarantee is useless, usually only covers the depreciated value of the shingle materials (not labor, the bulk of the cost of a new roof), and requires everything be installed per their instructions which are usually overkill in comparison to how installations are normally done.

We usually do one bid with only labor, that way if the owner decides on different materials the price won't fluctuate.

@Joe Splitrock and @Marlon Fong Thank you so much for the welcome.

Originally posted by @Joe Villeneuve:As an ex math major, can you tell me how to calculate the future returns on a REI that you paid cash for now (20% down) and had a cash flow potential and future flip profit potential where you reinvested all of your profit potential back into your system which resulted in a compounding effect return...spread over the next 15 years?