BRRRR Renovation- Individual contractors or company?

6 Replies

Looking to have BRRRR as my main investment strategy and I've got a question about the renovation portion. Since I'll be investing out of state, I'm looking to purchase multi-family homes that need a major facelift (basically taking it down to the frame, new drywall, paint, windows, roof, cabinets, fixtures, plumbing, wiring, etc). When it comes to the renovation, do you hire each individual job out (ie: find a plumber, hire an electrician, etc etc) or hire a company that has all of these qualified employees that'll come in and do it all.

Looking to turn around and have a place completely renovated in 4-6 weeks and ready to rent. If it's hiring a company to do all of it, what would that be called? A Construction Company? A Remodeling Company?

That is called a GC (General Contractor) and that is who you would use.

They manage the project and have their own subcontractors and trades for the specific jobs.

Originally posted by @Brian Garrett :

That is called a GC (General Contractor) and that is who you would use.

They manage the project and have their own subcontractors and trades for the specific jobs.

 Hi Brian and thanks for the quick reply!!!

Make sure you do your due diligence before you hire GC get referrals and extreme vetting, and keep in mind that your 4 weeks expectation mite defer significantly do to pulling permits or possible rezoning. Good luck on your project

Originally posted by @Heroud Albert :

Make sure you do your due diligence before you hire GC get referrals and extreme vetting, and keep in mind that your 4 weeks expectation mite defer significantly do to pulling permits or possible rezoning. Good luck on your project

 Thanks, Heroud!

Hi @Jon Passow , since you'll be out of state, I would look for a good General Contractor. It could be" John Smith's" contracting or a company like "ABC Renovations". Both would be a general contractor that has a staff and/or subcontractors and they would manage the entire project for you including budgeting, scheduling, permits, materials, etc. 

So I would advise finding some GC's and renovation/remodeling companies and speak with them, get a feel for how they are, speak to some references and go see some of their work. 

You will probably find that an independent GC will provide better pricing than a remodeling company because they do no have as much overhead, but a company with full time workers may be able to get the work done faster. Its a balance. 

I would also advise the taking multi family units down to the studs and rebuilding will take longer then 4-6 weeks. A cosmetic rehab (Paint, floors, cabinets, lights, switches and outlets, etc) would be more like 4-6 weeks. I would expect a multifamily, down to the stud rehab, to be more of a 8-12 week job. 

Best of luck!

Chris

Originally posted by @Chris Brown :

Hi @Jon Passow, since you'll be out of state, I would look for a good General Contractor. It could be" John Smith's" contracting or a company like "ABC Renovations". Both would be a general contractor that has a staff and/or subcontractors and they would manage the entire project for you including budgeting, scheduling, permits, materials, etc. 

So I would advise finding some GC's and renovation/remodeling companies and speak with them, get a feel for how they are, speak to some references and go see some of their work. 

You will probably find that an independent GC will provide better pricing than a remodeling company because they do no have as much overhead, but a company with full time workers may be able to get the work done faster. Its a balance. 

I would also advise the taking multi family units down to the studs and rebuilding will take longer then 4-6 weeks. A cosmetic rehab (Paint, floors, cabinets, lights, switches and outlets, etc) would be more like 4-6 weeks. I would expect a multifamily, down to the stud rehab, to be more of a 8-12 week job. 

Best of luck!

Chris

 Great advice, Chis. Thanks!!!

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