Do The Work Yourself Or Hire Contractor??
I was wondering how many of you do all the work yourself and how many hire someone else to do it all. We have done 2 properties with my husband doing almost all the work. But, he works 40-50 hours/ week so he doesn't feel like working afterwork/weekends all the time. I want to continue to buy RE that needs works, but hire someone to do all the work. He hopes to eventually do this full-time, but it is going to be a few years before this will work out.
i do both i hire out all or sometimes i do some of the work. i can do it all but there are some things i just will not do anymore, roofing, carpet,anything under the house, nope not going to do these any more. i don't have to do any of the work, i have a crew to do it but i enjoy doing most of it and i do pitch in. i super. the operation and consider myself the "finisher"........kenmax
it is better by far to hire out the work. it frees up your time and thats why i started this to begin with........kenmax
I think there comes a time when you have to do it yourself if your trying to get your costs down as low as possible. Then there also comes a time when you need to contract it out if it cutting into you time looking at more deals. We all had to crawl before we walked.
I just finished my first rehab and I did most of the work myself with the help of a buddy. I did the roofing, windows, plumbing, tiling, kitchen cabinets and appliances, electrical items, foundation, and floor joist. I hired out painting and hardwood refinishing. I learned.....So on the next rehab I will definetly hire out the roof and plumbing. Anything on top or under is not worth my time. I will hire a professional hardwood refinisher instead of saving money on someone who cut corners. I will paint next time. I will consider hiring out the tile work. Everything else will be a decide as I go depending on how my JOB is going that week. I learned quickly that working 40-45 hours a week at a JOB and then going and working 4-5 hours a night and most of the weekends gets old fast. And not to mentioned easily burned out. I think I can hire it out and get it finsihed quicker, back on the market and sold, for about the same profit margin.
Just my thoughts....enjoyed reading others...thanks.
As a Massachusetts state employee, I'm lucky enough to get 6 1/2 weeks off each year.
I use about 5 weeks of that vacation time to buy, rehab and sell one house per year. After I've sold the rehab, I use the remaining week to take a real vacation with my wife (often under the threat of a divorce).
As for the rehab work, I do all the carpentry myself, and I contract out the plumbing, electrical, tiling, etc.
I plan on enrolling at a local technical school next month to take some evening courses in electrical, so I can then do that myself also.
[addsig]
Ken is right.
What is your time worth.
I can see if you have very limited funds and you have the knowledge and or any licenses / certifications to perform work that requires such......however, for the most part it is better to hire out.
When hiring out you should check out references and ensure the contractors have required licenses and proper insurances as well.
NC_Yank
I don't do any of the work because my time is very limited and my properties are not close by.
So far I have had good luck with contractors, but not such good luck trying to save money with handymen.
The real answer is "It depends".
If you want to do this as a hobby and get less cash return, do it yourself. You will find you get into things you never dreamed of and make less money in the end.
If you want this to be a business, get contractors. They handle the headaches and pitfalls, and I guarantee you they know how to do a job efficiently.
I spend my time finding houses, managing contractors, running financing, etc. I currently have three contractors working on three different rehabs and my job is to keep them busy.
Remember, cash flow is king!
[addsig]
If your chosen method of investing in real estate is to buy fixer-uppers, repair'em, and resale'em, do 2-3 of them yourself, and learn the process, as well as will make many invaluable contacts. If you start out listening to contractors, they'll take every penny of profit out of your deals, and you won't make no money. If you know enough to tell them they're full of crap, they'll back off trying to take you to the cleaners, and get real. They LOVE fresh meat! (newbies, that is, that don't know nothing, and DEPEND on them to take care of everything) Comes back to paying your dues, either in money, or sweat...
I often find that the most forgotten cost of rehab is the carrying costs. We just tend to look past it and do our thing in the beginning. My first one (11 years ago) took me 11 months as I worked it in around my 50-60 hour a week job. I could have had it done in about 5 weeks if I had subbed it out. I would have saved 5K in carrying costs.
So you have to be truthful and ask what you can do and what you can do quickly. I can do it all, plumbing, electrical, etc. but can I do it quickly?..
[addsig]