Finding a contractor you trust and who does quality work is the biggest factor, but this is hard to do from afar and referrals may be your best bet.
We just finished an out of town rehab, it is challenging. My colleagues kept telling me to get a "boots on the ground" team together first. I did find some boots on the ground people but it was not before the rehab started more during the rehab. I would have been more successful on the deal if I used more patience and developed a skeleton team before I closed on the property. The contractor prices in a different state were much higher than I expected. I forgot how much better prices I get from my local providers.
@Andrew Robitaille I would suggest with a turnkey first and then doing a little more rehab as you get more experience. Handling contracts just makes the process more complicated with more risk.
Originally posted by @Andrew Robitaille :
Does anyone have insight on doing out of state flips or brrr? I have found a few properties that I am interested in but they need some updating. And I am not sure about how to go about it. Any feedback would be helpful and appreciated. Thanks for taking the time to read my post.
Out of State flips would never work. You'd require someone to source & analyze the deal, oversee the renovation then sell it for you. Ask yourself, if they are doing all of that what do they need to hand the profits over to you for? If you are thinking it's the money...Note that the hard money lending industry has that covered.
As someone who is looking to invest you want to set your sights on some solid rental property that you can park your 25% into & have some decent cash flow while the tenants pay off your mortgages & set you up well for retirement.
It doesn't necessarily not work, but you do have more pressure on your margins due to more people being involved making it that much more important to buy at a serious discount, and that is going to be your biggest challenge. If you figure out finding off-market distressed properties remotely, then the rest is about effective delegation and all of the project management fundamentals (risk, scope, budget, communication, etc).
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