first fix and flip!! contractors?

[James Snyder]

My wife and i just purchased our first real estate deal that we are both excited and nervous about. One of our questions are is it cost efficient to hire sub contractors and manage the rehab ourselves or hire a contractor to do the over all work? What are the benefits and down falls of both? Also, does anyone have any recommendations on companies for south Jacksonville Fl?  Thanks in advance for any and all HELP.

[Riley Geiman]

Congrats on closing in this crazy market! They say Kitchens and Bathrooms are a great way to get back 50% ROI when it comes to upgrading. If you can do it yourself and can do it correctly (nicely) then you will likely see a positive ROI on your money invested into the property. Save the money on a contractor and do it yourself if you have the proper skills and know how.

[Brittany Guimond]

Congrats!! We just wrapped up a flip. We were capable of GC'ing it ourselves, however we were tight on time and didn't have the capacity to find subs ourselves. We hired a GC because he knew all the subs, and it was def more $$, but also we look at it as paying for our sanity. Good luck!

[Eliott Elias]

It is cost efficient, until you realize you have to hire contractors to fix all the errors your subs made. Go with the GC up front, you will save time and money. Cry once. 

[Andy Sabisch]

Make sure you run numbers both ways.  Not sure what type of deal you got into and what your potential upside is but what can be a great deal can turn negative if you spend money on a GC especially if you do not have a track record to look at on past deals.  If you go with a GC, be sure to interview more than one and try to get a referral from other LOCAL investors that may have used the GC before.  We have used GCs on a few deals but in about half, we found that we had to pay twice for work when the GC found a better gig and moved on in mid stream.  We could have done better to protect ourselves (and have contracts that do that now) but there were some costly lessons that we wished we had avoided.

It depends on the scope of the reno you are tackling.  Paint, flooring and a bath / kitchen refresh you can probably do well with hiring the trades for specific jobs.  If you need to move walls, rewire, change plumbing or re-roof the property, a GC (the right one) can save your sanity even if it costs.  

But either way, make sure you run the numbers to make sure whatever option you go with fits the budget and ensures that the only one not making money on the deal is you.

Good luck!

[Carlton B.]

If you do it yourself you will learn a lot very quickly, but that only matters if this is something you will do going forward. Also you will start to build the same relationships as the GC which is also very valuable. So if this is something you will be doing going forward it will payoff, even if hurts in the beginning. 

[Jonathan R McLaughlin]

plan on doing it yourself will be more expensive. Hire someone good, be a good client.

[Peter Mckernan]

Quote from @James Snyder:

My wife and i just purchased our first real estate deal that we are both excited and nervous about. One of our questions are is it cost efficient to hire sub contractors and manage the rehab ourselves or hire a contractor to do the over all work? What are the benefits and down falls of both? Also, does anyone have any recommendations on companies for south Jacksonville Fl?  Thanks in advance for any and all HELP.

Nice! Good job on the first! 
For the first 1-5 I would say hire a GC and get the groundwork laid so that you can go out and manage/hire subs etc. on your home. This is not the best thing to do on your first couple unless you experience being on a job site like these flips you will be doing. If there is no experience than I would say dive in with a GC to get the knowledge then go out on your own! 

[Mariel DeVito]

Congrats on your first one.  Being local to the area, it is hard to find available and 'cost efficient' GC.  The market is still hot and they are in demand.  My husband and I have managed our own fix/rehab and have typically held.  Feel free to send me a pm to talk more about what companies you are looking for to help with your project.

[Kenny Hollaway]

I’ve taken both routes for my properties in Jacksonville. While it was nice having a GC who handled everything for our rehab, it was expensive and still find ourselves having to manage the GC for completion dates. Currently doing a rehab ourselves and hiring subcontractors. It’s taking longer due to running a business at the same time but saving us money. Feel free to message if you need referrals. I have no issue with sharing the subs that I use in the area that have done well for me.