How to contain the chaos on a Fix and Flip?

Question

Hello All

How do you guys contain the chaos? i'm in the middle of a full renovation of a SFH and i'm feeling a little over-whelmed. I'm 4 weeks and 1 day into the rehab portion and things are coming along but there is still a lot of work to do. We are attacking the interior of the house first until the weather gets a little better (Michigan) to work on the exterior. I'm contracting a lot of the jobs in parallel so the house looks like its flipped upside down ( Electric, Plumbing, Hvac etc. ) which is probably the reason of the stress. I want to hear stories of others and how did you guys handle the stress. I know in a few weeks the house will be fully rehab and will look great, i just need that extra lift to get through till then.

Thanks for listening.

Sue Hough · Answer

Rafie,

Your feelings sound normal! I’m sure that doesn’t make things any better. As a contractor and investor I strongly advise using a schedule and make sure it is realistic. You can ask your trades how long their portion is and fill in the blanks. This will elevate the chaos and give you a sense of control and know, to some degree, what the future holds.

Although I use a commercial version, this planner looks great with gantt chart, colors and ease of change; QuickPlan - Project Management by Hao Li. https://itunes.apple.com/us/app/quickplan-project-management/id782346977?mt=8

You stated all of your trades are there working, that may cause a lot of confusion. There is a standard work flow we use in the industry, (for example plumber is first, then HVAC and so forth) and if you follow it, your project will run smoother and your trades will be happier with you. Here is a simplified approach, please modify as you see fit for the scope work.

Demo

Frame

Windows

Plumber

HVAC

Electric

Frame again, to include back-back out for drywall and repair anything the previous trades moved

Insulation

Drywall finish and tape, and prime

Flooring, Tile first then HWF (do not install carpet yet)

Cabinetry

Finish trim

Paint

Countertops

Finish Plumbing

Finish Electric

Finish eveything else; hardware, mirrors, carpet, etc.

Smile, sit back, and have a hard stiff drink!!! You did it :)

Good luck,

Sue Hough

David Robertson · Answer

Sounds like a typical construction site to me! You should be encouraged that your contractors are actually showing up, working and making progress.

It get's way more stressful when contractors start to flake-out or progress starts to slow down dramatically.

The last 10% of work always seems to take the longest. Make sure you stay on top of your project and finish strong!

Saravanan Saravanan · Answer

@Rafie Ahmed

After doing many flips over period of time; I can say first few flips are more challenging as you have to do handle different elements of the project. Contractors, right type of material, appropriate quality of finish for the market price...

Sometimes overcrowding different contractors at same time; gives unpleasent feeling; as each might upset others!

interactions of the work between contractors (say paint fell on finished carpet or finished flooring); drywall work puts the electrical problem; furnance goes out as some dirt through the vent and fries the circuit. The list is endless....

You have find a right balance, learn and adjust...

Gregory Rankel · Answer

I completely agree with @Sue Hough. Just like math has an order of operation, so does construction. Follow that order and your stress level will drop dramatically. Good Luck!! Would love to see before and after pics when project is complete!

Jim D. · Answer

The house has to get uglier before it can get prettier :) Once you've done it a few times, you can see through all the chaos and envision what it's going to look like in the end, but your first time it is stressful. My last couple steps are usually flooring and paint, and that's when it actually starts looking great. It sounds like you're on the right path... just stay the course!

I always budget an extra 25% budget for surprises, and almost always use the entire thing. I also take my best guess at how many weeks the rehab will take and then double that, which is usually about right on. Having that mindset going in will help reduce stress when surprises and delays inevitably happen.

Rafie Ahmed · Answer

@Sue Hough i appreciate the break down of construction flow, i'm doing the exact same thing as you have listed but some at the same time. Off course this all happy path i did have fall outs with workers, contractors not showing up, trying to hustle me for more $$ etc. but yes having a level head and keeping the eye on the prize is my plan.

@Frank Geiger I agree with you that checkpoints and QA of work done by contractors are needed to be done and discussed but its a real fine line on how much criticism can be shed due to needing these guys for the next project.

I appreciate all the advise...keep them coming!

Frank Geiger · Answer

Once you get a system down you will lose a lot of the worries. Make spreadsheets with the finishes you want and then apply to like properties. Sometimes overcrowding the project site is counterproductive and slows the entire process down.

Right now, I would get your baselines. How did the electrician, plumber, HVAC tech perform? Did they meet your schedule and standards described in the service agreement? Were they an expert in their specialty? How was the pricing? If they knock most of these baselines out of the park, you are very lucky on one of your first projects.

It's time to refine and get ready for the next one. The first reno is the hardest. Stay motivated and repeat!

How to contain the chaos on a Fix and Flip?

How to contain the chaos on a Fix and Flip?

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