Current situation

• I used to renovate houses that I bought one after the other. These were mainly rentals and I kept them as rentals (BRRRR method of real estate investing).
• Currently have $113k in cash, mixed business/personal cash. I live below my means at about 25k/year.
• Planning to spend $60k on another property (which will be rented out fairly quickly after minor reno), leaving ~$53k cash leftover
• I have 2 vacant houses of my own to renovate (bought in cash, very little taxes and no other holding costs). I need to reserve about 45k for materials costs. Both are at 0% complete rehab (6+ months each).

Coming up

For a different house, refinance (out of cash) that I've nearly completed renovations. Should get back at least 100k. That will come in about 3.5 months.

Property taxes will be due around then. That's about a 15k bite.

For client projects, not my own properties, I'm allowed 50% of the contract price up front. Prefer to actually start work before getting that but I could get that draw whenever:

• Contract #1: $24k project, contracted but work hasn't started yet.
  • 12k is 50% draw
  • 10k gross profit
• Contract #2: $48k same deal
  • 24k is 50% draw
  • 15k gross profit

Most of this work (roofing/siding) is subcontracted out. I planned on doing 1 bathroom remodel + 1/2 bath remodel + door installs and a few other odds and ends.

Hiring situation

• Considering hiring my first full-time employee "Residential Maintenance Technician"
• Expected wage: $30-35/hr
• My estimated total employer cost: $40-45/hr
• My main concern is maintaining enough cash flow and work volume to justify keeping someone employed. Like I mentioned, before I did one house after the other alone and not any real contract work.

What I'm trying to figure out

• How many months of payroll should I keep in reserve?
• Can I afford to pay a higher wage?
• For construction business owners or flippers, any tips? Any guidance?