Question for flippers: Do you use a single contractor for rehabbing a flip or multiple - plumber, electrical, drywall separately? What worked out better for you? In terms of costs and maximum profit?
Hey @Divya R.
My main recommendation would be to base your choice off of how you plan to invest. If you are looking to do one project at a time then I would recommend finding one really good GC that you can build a relationship with. If you are looking to invest in rentals that would only need on going to minor repairs I would say build your list of sub contractors (plumber, handyman, vac, etc) it will be more cost effective for you with small projects. If you are going to go full tilt with rehabs big and small there are two key ways most investors will set it up, and its based on personal skill and preference I think. One they will hire a Project manager or a GC company that can handle all the projects for them from beginning to end, this helps them focus on finding more deals and funding them. Another part of the first one would be to have a few GC's thing here is you have to manage more people. Downside of this one is it can cost more but you also save your own time. The other option most do is Find their own team of subs and manage them. Saves money but they also have to spend a lot more time managing them.
So in the end it comes down to your plan and strategy for investing and what do you want to do in it.
@Divya R. Be sure to consider local laws and your own liability when deciding whether you need a GC. Often an owner may legally act as GC for their project. However, they also assume the liability for it. I like the fact that a good GC will stand behind their work and have it bonded.
@Divya R. as was mentioned previously, much depends on how you plan on running your flip. Do you plan on being there daily or more like once a week?
Conventional wisdom is that if you “GC” your own flip, you will save money. That CAN be true. But you could also really suck at managing subs, overpay, get crappy work and the list goes on. So, in that case, it might be better to let a pro do their thing.
I personally like good mix. I like to for sure hire my trades like electric, plumbing, roofing, foundation, and HVAC. I prefer not to have someone else making these choices just because they are overseeing my flips.
On a side note that probably can take up another thread entirely
contractors were made to be fired so I strongly advise against putting all of your eggs in one GC’s basket so to speak. No matter how great they are, you will eventually need to fire them or just move on from them (in my experience) due to any number of reasons that always seem to crop up