BiggerPockets

It would be better for you if your partner bid out the job as a project.

Don't let him walk around the job site without a good project agreement in place.

You see, if you pay him $25/hr, there is no incentive to finish. The longer it takes the more he makes.

And the more you have to pay.

Learn this lesson now. Make a good agreement before the project starts.

Thanks for the replies and advice.

A little more info on the deal....
My partner is my Brother in law. I am well aware of the "never go into business with..." axiom and still feel comfortable doing it with family (this family member).

He does very nice work. He owns a sheetrock finishing company and has an outstanding reputation. He built his own home with the help of his fellow tradesman. The workmanship is top notch. His knowledge base and contacts with other tradesman will be vital to bringing the house up to specs in (hopefully) short order.

I must admit to fibbing a tad for the sake of ease. We are in mid project. We are 2 months in....he has spent 80 hours on the project. Roughly 10 hours per week, on weekends and afternoons. He is adding a bathroom to make the house more attractive to renters etc.......

We paid 9k for the house. We hope to get it up and running for 20k worth of labor and materials. Comps in the area with fewer bathrooms go for 65k. The few rentals in the area go for 600 to 650 per month. It is an older community, but a stable one.

Risk? We are in hurricane country. Home has been flooded twice in last decade. It had not been affected for 70 years before that.

Anyway...that's the short of it. Plan is to incorporate and make it legally tidy before renting it.

Thanks again for the input. Please add more! Fire at will. I'm a big boy...i can take it!

You are a brave man Chris although some may not call it bravery... :wink: I just have one question; Giving the fact that the house was flooded twice in the past decade, Are you sure the house is insurable? If the house is located on the beach, you are probably protected by this stupid federal law that requires the tax payer to pay for rebuilding the property in case of a hurricane, However, if the house is not a beach-front property, I'm not aware of any law that force insurance companies to insure it. It seems to me that if they do, flood insurance would be to the roof (Almost literally... :wink: )