Finding Trustworthy Contractors in Cincinnati
Newbie Here - I'm planning to start real estate investing using the BRRRR strategy in Cincinnati Ohio.
So far, finding funds and financing has been the easy part. It's the rehab that has me worried. I've screened several contractors for "small jobs" around my primary residence as a way of screening their potential for a larger rehab job. I found most of them through random internet searches but can't seem to find one that has both the competence and the character to get me to a place of trust for a BRRRR. I've heard that choosing the wrong contractor could be fatal to first time RE INVESTORS. I'm hoping this community can help me with tips on spotting red flags on what to avoid, advice on what to look for to find the perfect contractor and of course any referrals or recommendations from personal experience.
I’m an investor and general contractor. Happy to discuss your project and goals to see if we would be a fit.
Originally posted by @Ryleigh Simone:Newbie Here - I'm planning to start real estate investing using the BRRRR strategy in Cincinnati Ohio.
So far, finding funds and financing has been the easy part. It's the rehab that has me worried. I've screened several contractors for "small jobs" around my primary residence as a way of screening their potential for a larger rehab job. I found most of them through random internet searches but can't seem to find one that has both the competence and the character to get me to a place of trust for a BRRRR. I've heard that choosing the wrong contractor could be fatal to first time RE INVESTORS. I'm hoping this community can help me with tips on spotting red flags on what to avoid, advice on what to look for to find the perfect contractor and of course any referrals or recommendations from personal experience.
I have a couple of general contractors that do work here in Columbus, Ohio, and Cincinnati. I would recommend reaching out to your local Realtor and ask for referrals. They should have a list of local contractors that will help with any job.
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Yeah thats one of the hardest parts about investing in RE. You can find high quality contractors online but they are very busy and know their value. Unfortunately their high non investor friendly prices dont pencil out for most deals. The best guys are kept secret. I would recommend driving around your neighborhood and talking to guys already working around you. The best deals are from old school contractors in the area who only get business word of mouth and dont have any online presence. Those guys will be literally half the price of the companies getting leads online. Also, you can make a Craig'sList job post for $5, you will get hundreds of responses. However you would have to do a TON of filtering to find the person who is capable and qualifies to do the job.
Update - I have decided to dip my toe in to test the Contractor Waters with a small job in my residential home first (a 6x7 hall bathroom).
I requested six bids but only received three. I am utterly amazed by not only how different the pricing is but the various ways the contractors provided their estimates. The differences range from a two-page, fully itemized bid to a text message with just the total cost amount (LOL). Luckily, thanks to reading the Bigger Pockets forum threads, I was able to ask the right questions in order to do an apple-to-apple comparison.
Now that I have the numbers (see screenshot below), I'm looking for some tips on identify GLARING inconsistencies, hidden or missing costs and any general advice on what to watch out for before making a final decision on contractor choice.
THE JOB: relocate toilet, tub/shower and vanity which requires moving plumbing, electric and a heating vent. move tub/shower under existing window (NOTE: one contractor suggested replacing the window with a glass block window).
@Ryleigh Simone
I love the approach-
1. Reading
2. Starting small
3. Standing on the shoulders of those who have come before you.
4. Using your analytical skills.
5. All ingredients for successful.
Keep in touch as I am interested in how it plays out for you.
Are these labor only bids or labor and material? Based on the pricing, I think contractor E is labor only and the other 2 are labor and materials. Based on the limited info you provided, I’d anticipate this project being somewhere in the $8-10k range for labor and materials.
@Timur Salikov I appreciate your transparent response. I am a contractor and real estate investor in Cincinnati and northern Kentucky. In my limited experience as a contractor, our pipeline to serve non-investor clients is healthy. We have an online presence, invest in digital marketing campaigns, and are ever mindful to create and maintain partnerships in our quest to scale our business. It is, therefore, difficult to eagerly work for an investor at a lower profit margin. However, we have investor clients and thoroughly enjoy the repeat, steady supply of business. The investors whom we do serve have a partnership mindset, and they typically have a decent size portfolio of properties. Many have experienced the burden of engaging a less professional contractor. It has been a great joy to help each of them reach goals!
Key considerations:
1. Many investors need significant education about the actual costs of rehab. May I tenderly encourage you to continue diligently studying construction/remodeling with as much zeal as you try to find a deal?!
2. There can be an immense burden of dealing with a "joe-in-a-truck" contractor who provides the lowest price. If a property owner is unable to manage this lower-priced, less professional contractor and communicate effectively with him/her, then the total cost (financial, emotional, psychological, lost time due to inefficiency, etc.) of the project can be astronomical. Quite frankly, I have known many smart, talented men and women who choose to never do another rehab after going through a bitter experience on their first rodeo.
3. Be a blessing to your contractor; be someone whom he/she wants to work for. Share that you will be getting multiple bids. Honor and respect his/her time. Much investment of time is required for the contractor to arrive at a mutually beneficial price - one where everyone wins.
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Unfortunately I missed this post until today, so I am not sure if you already moved forward. However, I have been doing construction for 15 years, and had my own GC business that last 4 years. It is hard to say a true cost without looking at the job site, but based on what you provided and the estimates in the spreadsheet, I would absolutely run from contractor E. There is no way you could possibly do that job correctly for that price, even if he his paying his guys 5 bucks an hour under the table that is cheap. Which you do not want. As for the other two, it is hard to tell if they are including just labor or both, but depending on your level of finish and material choices 8-12k would be reasonable, especially if they are pulling permits, which they are supposed to in this case. If you are comfortable without permits, the cost may go down some. A standard cosmetic bathroom remodel runs 5-8k, and with moving electrical and plumbing the cost would go up, replacing windows, etc. You have a line item for tile work, which tells me the shower is being tiled in. All 3 bids are cheap for tile labor. I know everyone wants a good deal, I did too when I hired contractors myself before starting my own company. It never once worked out in my favor, I either had to fix it myself or pay double to hire a professional to fix it the second time. You do get what you pay for, but that does not mean that expensive is good either, its very tough to find a good company. Look for actual referrals from people you trust, or have them show you past jobs and give customers as references. If a construction company cant find a single past customer to say a good word for them, they suck. Best of luck on your project, please update us on what you decide, and how it goes!