Owner Builder "Flips" in CA

[Spencer Frazier]

I know this is a hot topic, but i have searched the web for DAYS looking for a solid answer to my questions with not much luck.

My question is... Can an company and or an individual flip homes with only cosmetic updates in CA without a licensed contractor? Simple question huh?

I know the government regulations state an "owner builder" can only buy, fix, and sell 2 homes in a 3 year period, only if they have lived in the home for 12 months prior... I want a CONCRETE answer. Some people say if it is just cosmetic (no permits), then you can. Some say you can not! A person can buy as many vacation homes as they want and resell them any time they want, right? Whats the difference with buying a home, painting it and patching some drywall and then selling it?

When is the line crossed where you need a licensed GC? Apparently, hiring subs to do all licensed work gives you 4 flips a year? A GC gives you unlimited and an "owner builder" gives you 2 every 3 years if you live in it 12 months prior.

I know tons of people that are not licensed GC's and do not hire one, who flip A LOT of houses...they have no problems getting permits from the city and HOA.

With the above rules you actually couldn't "flip" as an "owner builder" because you would be buying and selling well within a year period. So there would be no way you could "live" in the home for a year first.

Some people tell me the "owner builder" rule is for ground up builds, which i do not believe for a minute. But if i am wrong on this please fill me in!

Another person told me that if you have a real estate license and flip with a company name you can do as many "flips" as you want as an owner builder...but i call BS.

Thanks for any help!