My First Rehab Through a Contractor

[Lance Turner]

I've been managing rentals for several years and have done rehabs on my own in the past (mostly cosmetic but some light repairs too). I'm looking to conduct my first rehab using a contractor (either as a flip or BRRR ...not sure which yet) and would like some feedback and advice on developing my scope of work and estimate. Can you share any best practices with me? I've attached a link to one of my recent rehab estimates and screenshots from a video for feedback if that helps (I have already swtchwd to photos but this one I did using video). I'm working in Middle GA south of Macon. The house needs a roof and an AC unit. Part of my challenge is that it seems my estimates are consistently high (possibly from a lack of knowledge of how contractors bill).

Any advice for the newbie to working with Contractors

  https://www.biggerpockets.com/analysis/flips/6784d2d8-f29e-4...

[Lauren Robins]

That's an exciting step forward—moving from doing your own cosmetic rehabs to managing a contractor is a big milestone, especially as you look to scale up and either flip or BRRRR. Since you've already had experience with hands-on rehabs, you're not starting from scratch—you've got a solid foundation and a good eye for what needs to get done. Now it's just about learning how to communicate those needs effectively to contractors and manage the process efficiently.

The first big key is developing a clear and detailed scope of work (SOW). You want to break the project down by trade—things like demo, electrical, plumbing, HVAC, roofing, exterior, and interior finishes. Be as specific as possible. For example, instead of saying “replace vanity,” say “install 30” white shaker-style vanity with brushed nickel faucet, materials provided.” Also, clarify whether you or the contractor is supplying materials. Vague scopes tend to lead to miscommunication, inflated bids, or change orders later on, which can be frustrating and expensive.

Once your scope is locked in, get bids from at least three contractors and ask them to quote off your itemized SOW. This way, you can compare apples to apples. When bids come back, pay close attention to outliers—if one contractor is way higher or lower than the others, that can indicate either padding or misunderstanding. High bids aren’t always dishonest, but they might include built-in markups or assume more labor than necessary, especially if the contractor plans to sub everything out.

It also helps to build a materials budget spreadsheet based on what you typically buy and what it costs locally (from Home Depot, Lowe’s, or regional suppliers). That way, if a contractor quotes $450 for a toilet installation that you know only costs $125 for the toilet itself, you’ll know to ask follow-up questions. Understanding material costs gives you more leverage and clarity in your conversations.

When it comes to payments, ask for a line-item draw schedule and tie payments to project milestones, not just time. For example, you might structure it as 25% after demo, 25% after rough-ins, 25% after finish work, and 25% after a final walkthrough. Avoid giving more than 50% up front—some contractors will ask for a small deposit to get started, which is fine, but you want the rest to be performance-based to keep the project on track.

It’s also incredibly helpful to walk the property with your contractor before finalizing the bid. Go over your scope in person and get their feedback—but don’t let them completely rewrite your project unless there’s a good reason. This walkthrough is a great chance to assess how they communicate, how detailed they are, and whether you feel comfortable with their approach. If a contractor is vague about pricing or avoids answering direct questions, that’s often a preview of what working with them will feel like.

A quick bonus tip: for major systems like roofing or HVAC, it’s often better to get separate quotes from specialists rather than bundling them under a general contractor. You’ll usually get better pricing and more accurate information. 

Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.