How to do rehab for out of state property?

6 Replies

I am in the process of buying a SFH that needs some minor rehab. I need to have the flooring redone.

However, I am out of state. I have a contractor that already gave me a quote and is willing to do the work, but how will I let him in/ verify the work is done from out of state?

I'm unsure if you've received any feedback (off-line) however we're currently living out of state with rentals. I am not getting paid to say this but David Greene's book on investing in out of state was great. Yea, its a little wordy but it served the purpose by assisting us when we need some light reno work. Spending $20 on the book saved me so much more!!! All the best!

you need to spend a lot of time networking with local investors. You can't have just the one person. 

who is going to property manage the place? can they help with this? What about backup contractors? Have you flown out the area to meet people and see the general area? 

essentially, you need a team of people to do this OOS. one is not enough imo . 

Originally posted by @Alexander Felice :

you need to spend a lot of time networking with local investors. You can't have just the one person. 

who is going to property manage the place? can they help with this? What about backup contractors? Have you flown out the area to meet people and see the general area? 

essentially, you need a team of people to do this OOS. one is not enough imo . 

Local investors or local contractors, agents, etc? I have a property manager who will be managing it after the purchase, yes.

My question is how do I let the contractor in and supervise the work when I am not physically there. Will a property manager do this? For 10% of rent/ month, I doubt it, but I'd love to be proven wrong. 

Give him a key to the property or have the property manager set him up on a lock box.

My property manager would do a lot to help me out. My overall recommendation is to invest in people who want to grow with you, if it's just about exchanging the 10% for the least amount of work (by both parties) then you've limited yourself by the people you've chosen. 

Having local investors around that you've made friends with and are willing to help you out goes a long way. long distance investing is passive only in the sense that you don't need to be there. It is NOT a set-it-and-forget-it busienss model. I suggest you continuously spend time reaching out to folks who are local on the ground so you can build a large set of relationships on the ground.

you will fire contractors, property managers, and more over time so building reserves of connections now can help not just for the present but the future as well. 

@Tyler D. get 3-4 quotes from contractors local investors have used. Use your PM as a supervisor. For a rehab, you should pay your PM a Construction Management fee to oversee the work, if just flooring on something you already have and you are redoing it because previous tenants under your PM messed up the place then PM needs to oversee that just as he would if a plumber was going out there to replace a toilet.

Best of luck!