This is my 1st time locating a BRRR property. I am assuming you want to quickly rehab, as soon as you close. Since the rehab work required might vary by the property - it's hard to know if you need a roofer, or a handyman or general contractor etc.
How do you all typically line up resources/contractors to do the rehab? Do you have a list of go-to resources/contacts that you want to contact BEFORE closing on the property so that you can engage them to come out and do the rehab work?
where also is a good place to find resources/contacts for doing the rehab work?
If you don't involve your contractor before buying the property how do you know how much you can pay?
With this being your first time rehabbing or doing a BRRRR how do you know what the rehab costs will be?
One of the most critical parts of analyzing a BRRRR is having a solid rehab estimate to determine your offer.
Once the inspection is done, I thought there might not be enough time to get a contractor to come out and look at the property to provide a rehab estimate, and just rely on the inspection report to provide an estimate. Especially in a market/area where it's still highly competitive and the sellers have a short turnaround time for an offer review.
Do you normally get the contractors, roofers, handyman to come out and look at the property based on what comes up in the inspection report?
Kosh, with our BRRRR properties, I always get a contractor to go out with me on the initial look. I agree with Brian that you almost have to have a contractor on hand to give you an estimate unless you've done this numerous times and are comfortable assessing the renovations yourself.
The best way to handle contractors is to have them give you a bid for labor then you purchase the materials. You can price out and search for overstocked materials on FB and Craigslist to get the costs down. On your first property doing a rehab, it's going to be difficult to have a contractor that you can trust and rely on since you may not be aware of their work integrity. I think many investors would argue that you will go through some bumps early on by selecting the wrong contractors.
Personally, my first two rentals cost me about $10k because I just didn't know how to run a renovation project utilizing proper contractors. I took it as an education, and on our 3rd property, there were no added costs because of the learning curve. Unless you get lucky and find a great contractor (or contractors if you GC the project) expect to have some dollars come out of pocket after the project is complete. You will find a team to handle your projects in the future after you get your feet wet and understand the process.