Detroit, MI · Member since 2017 · 3 posts · 0 votes
I am relatively new to real estate ideology. Would a residential builder's license be required/beneficial for a live in flip/house hack? Online answers are conflicting. Thanks!
Renter · Las Vegas, NV · Member since 2018 · 278 posts · 71 votes
8y
Ryan, the specific answer depends on the parcel, city, county and state the property is in. Find the code and study it.
I believe that many states if not most allow for an contractor's license exemption if the owner acts as GC playing the role as owner-builder of his/her's own home. Make sure you check if you are allowed to sell or rent or have to hide that intention up front.
And if you want to build a plex (4 units or under is residential financing) you may have a hard time finding the land zoned multi and should look for an special use variance of much more common and cheaper single family zoned land. Land is not required to get money.
The problem comes up during construction loan financing your 1st deal because the bank will ask for a resume of the owner-builder including experience building homes. Without experience, you may have to hire a GC to manage the project and submit that in the financing package.
After you build your 1st one it should be much smoother!
Investor · Boise, ID · Member since 2014 · 3k+ posts · 3k+ votes
8y
Hi Ryan- welcome! I think there may be some confusion on terms. You'll need to check with your municipality, but in general, you do not need a license to work on a property you live in. However, you do need permits. I think the confusion may be here- if you do not live in the property, you need a licensed contractor to pull permits and perform the work. However, if you live in the property, many cities will let you pull the permit and perform the work on your own, but you still have to perform all of the work to code and pass an inspection.
Head down to city hall and sit down with someone at the planning desk. This is a great and underutilized resource. There are planners and inspectors there who will walk you through your job, code and building and permitting process and it doesn't cost you a nickel. I do it all of the time. Best of luck!