BRRR deal seemed great until the contractor started rehab

[Jeremy Anan]

Calling out to all investors!!!

This BRRRR deal seemed great until the contractor started rehab. This is a 5-Unit multifamily. The property has been vacant for a while (maybe 10 years; not exactly certain). It is a gut rehab. We've completed demo to the studs; all walls are now open, as well as the ceiling. We now realized the property is unstable due to the rain all these vacant years. A lot of "lumber" work is needed in order to stabilize the building.

So far, I’ve purchased $12,400 worth of wood (2X6X16 DRY, 2X10X14 DRY, 4x8x3/4 OSB T&G, 2X10X20 DRY, etc…)

Looking at the labor costs my contractor is charging to stabilize the building, the financial figure is quite concerning.

I have rehabbed small multifamily before, but they were not gut rehab. The previous 2 projects (7-unit & 5-unit) with the same contractor went super well.

I am reaching out to more experience rehabber, investor. Are these labor costs reasonable to you? These are all 1bed/1ba apartments.