What if you were in my shoes ?

Question

I work in the Asheville, NC area for a small company doing custom remodels—mostly kitchens and bathrooms. I can do any labor that doesn’t require a plumbing or electrical license. I Love my job and am thinking about how I can best leverage these skills to make greater future investments. I currently own one rental house that I manage and do all the maintenance.

What type of strategies and paths forward if you were in my shoes as a professional handyman and home remodeler? Where would you focus your time and energy to get the best return?

What type of strategies and paths forward if you were in my shoes as a professional handyman and home remodeler?   Where would you focus your time and energy to get the best return?

Kenneth Garrett · Answer

@Jackson Benefield

Based on your skill level you could invest in BRRRR deals and use your skills to do simple cosmetic updates.  If you have enough time and you’re willing to do the updates that don’t take months to do this could be extremely profitable for you.

Many investors who started out with construction skills started the DIY method.  Eventually, then turned to hiring it out to better use there time.  I do know investors who just love the rehab part and continue to acquire properties and do the rehabs.  You’ll be limited to how many of those you can do in a year.  Maybe 1-3, but after a few years of it you’ll have a nice portfolio.

Caleb Brown · Answer

2 things I see. On the real estate side you can look into doing a BRRR or a live in flip. With being handy you can save money with not hiring out. Another thought is starting your own handyman/remodeling business. This is a entrepreneur venture but you'd increase your income if you manage it right.

Jaron Walling · Answer

@Jackson Benefield We love Asheville and have vacationed there many times. Wife and I got married there in 2022.

The BRRRR strategy is a no-brain option. You could also live-in flip a property and operate an STR at the same time. Every time we visit we stay in an Airbnb/primary residence combo. It seems like a lot of locals intentional buy/modify property for this purpose. Probably because the cost of RE is so d***n expensive. It seems like a win-win for owners of those properties. We have rented on the South Slope and West Asheville like 6 times. We took a trip last year and brought motorcycles down. The property owner was home and allowed us to park our bikes in the garage!! It was an unexpected touch that we appreciated.

I know STR's are banned in the city limits but maybe you can find a distressed property with space to build an STR. Seems like a lucrative strategy if you have the flexibly.

Jackson Benefield · Answer

Yes, definitely sticking with my job for at least the next few years so I can use leverage on my next purchases.  It's a 1099 position that I've been at for one year so far.  So, I need one more year to have 2 years of solid tax returns.

We could totally handle a heavy remodel, so that's something I'll keep in mind.  Definitely a small- medium remodel would be easy and keep our risk lower.  I imagine there's a way I could run a rehab through my employer.  As the GC, he gets paid and handles all the permitting and scheduling with other subcontractors.  Then, as a contractor myself, I also get paid while doing the work on my own house.

Jackson Benefield · Answer

That's a good thought on starting my own remodeling business.  I know I could make more money that way, but I am appreciating the fact that I don't have to handle all those aspects of running a business right now.   Maybe one day, after I gain some more skills and experience.

Jackson Benefield · Answer

Hey Kenneth, Thanks for the reply and input!   That's a great idea; I am saving up now and next will look for a BRRRR opportunity.  Doing the work myself seems like to opportunity now, but I could see that could be limiting in the future.

What if you were in my shoes ?

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