I'm on the verge of buying a condo at 170k that will have a after Reno sale price between 240k-260k. It's a condo so there is no structural/electrical work. Lots of fixtures, carpet, laminate floor, tiling. I'm only 24 and don't have a lot of experience doing work like this but have family members and friends that can mentor me. I estimated the materials and new appliances to cost 16k. If I hire the labour it will bring my costs to 30k. Do you pros ever do the work yourselves?
After the rehab I'm not sure if I want to sell, (50-66k investment returned, gain profit of 40-70k) or rent out for $450/month cash flow, or refinance the loan, gain 50k cash back and keep it as rental for $150 cash flow. Thx for any advice!
Best thing to do for the first flip is learn as much of the rehab as possible. For the next flip you learn a little more. I had contractors that didn't show up for jobs for me, so I had to do the work. At this point I don't worry about rehab work that needs to be done, it may take a little longer, but it saves me money.
@Andrew DeB There's no 'right' or 'wrong' answer to this. If you would like to do the work (and can do a quality job), than do so. Otherwise hire it out. It always comes down to money vs time anyway.
Personally, I try to do as much myself as I can...not so much to save money but because I really enjoy the work and having control of the finished product.
Good luck with it!
Doing it yourself allows for a larger spread because there aren't any contractors to pay or wait on to complete the job. My Dad and I did a full remodel that should have cost an extra $15,000 and 2 extra months. We saved the time and the labor. But, my dad is a master carpenter and I have worked in construction since I was 13. So, we know what to do.
I also missed out on several deals because I was spending time swinging a hammer. I now do very little of the work and spend more time working on the business instead of in the business.