Let me tell you about one of the worst deals I’ve ever done – a small duplex that taught me expensive lessons about construction management.

The Deal

I bought this two-unit property at a foreclosure auction. It needed complete renovations and I planned to flip it to either an investor or owner-occupant.

This was my fourth deal ever, so I was still learning the ropes…

Here’s where everything went wrong:

Mistake #1: Hired the Wrong GC for the Job

I used the same general contractor who had done light unit renovations on my previous rental properties. But this flip needed high-end finishes: granite countertops, stainless appliances, shaker cabinets.

His crew was skilled at rental-grade work, not the quality level this property demanded.

By the time I realized their work wasn’t up to par, I’d already wasted significant money and time.

Mistake #2: Adjusted Scope Mid-Project

After firing the first GC, I had to bring in a second contractor. Instead of starting fresh, I tried to work around the subpar work already completed.

This affected the after-repair value and confused the new GC about what we were actually trying to achieve.

Mistake #3: Didn’t Manage the Project Closely Enough

The second GC was juggling multiple projects simultaneously and spreading his crew thin.

Because I wasn’t on-site frequently enough to monitor progress, he felt comfortable sending his workers to other jobs.

The timeline stretched far longer than it should have.

What Are The Lessons Here?

You can’t afford to make these mistakes on a multifamily value-add project. The right GC for rental renovations isn’t necessarily the right GC for higher-end work.

Once you start a project, don’t compromise on scope, as it affects everything downstream.

Aaand, if you’re not managing the project closely, don’t expect anyone else to prioritize it.

This deal taught me that construction management isn’t just about hiring someone and walking away. It’s about matching the right contractor to the right project, maintaining clear expectations, and staying involved throughout the process.

The good thing is, nowadays you can learn from other investors’ mistakes before making your own.