Im a 27 y/o GC and carpenter. What investment strategy is most common/best for someone with a remodeling/contracting background? Which method will maximize my existing skill set and/or is most contractor-reliant? Thanks!
As the first project, I would suggest a small single-family or multifamily property that requires small to medium renovation, and hold it as a rental or flip it on the market. Some investors will appreciate going into a JV with a seasoned contractor; however, if you don't have a whole rehab experience, I would start with small projects with less risk and time holding the property. It really depends on how much capital you have to purchase and renovate, and what the ARV of each property is.
Investigate your local market by visiting properties in person to get a sense of the market.
As the first project, I would suggest a small single-family or multifamily property that requires small to medium renovation, and hold it as a rental or flip it on the market. Some investors will appreciate going into a JV with a seasoned contractor; however, if you don't have a whole rehab experience, I would start with small projects with less risk and time holding the property. It really depends on how much capital you have to purchase and renovate, and what the ARV of each property is.
Investigate your local market by visiting properties in person to get a sense of the market.
For a GC/carpenter, the highest‑leverage play is value‑add buy‑and‑hold using BRRRR or a light hybrid: buy dated but solid properties, do targeted cosmetic/mechanical upgrades you can execute fast, place a quality tenant, then refinance and recycle capital . Your edge is scoping accurately, controlling timeline and quality, and turning “contractor problems” into equity; consider small multis for multiple income streams, and wholetail quick turns when a two‑week punch lifts resale. Avoid early projects with stacked structural, sewer, roof, and electrical hits unless deeply discounted. Next step: pick one submarket, define your deal box, analyze a few deals daily, and write consistent offers that fit it.
I would recommend sticking to a specific zip code or pocket of homes and looking for a fix n flip.
I work with many investors that have tighter margins on their fix n flips due to subbing out much of the work throughout the process. I find that GCs working on their own flips allows you to open those margins back up. Additionally, you won't have to rely on another party to stick to a timeline, so the project can be completed as quickly as you can make it happen.
I would definitely target value-add projects if you have a background in carpentry. You will have a good sense of what renovations are needed, how much they will cost, and the timeline associated with the work.
It will also help when you hire contractors...you will know the industry, so when they try to "blow smoke" you will have the ability to call them out because of your past experience.