To New (and experienced) DIY investors

[Paul Hoeppner]

Something that's not talked about enough on here is building permits, specifically with rental properties.

Just a fair warning to new investors out there.  Just because you are capable of doing the repairs to a new or current house does not mean it's legal.  Know the laws of your city.

A common mistake is to think that because you own the property, this means you are allowed to do the work yourself.  This is not the case for rentals in so many markets.  Many markets won't allow you to even put up drywall without having a licensed general contractor do the work.  The city won't even give you a building permit.

[Gordon Lewis Renney]

This is so true. Always pull the appropriate permits. 

I recently had an "ex-guru" tell me not to pull permits. In his opinion, they add unnecessary cost to a project, and you can do work inside a property without anyone knowing, if you're discreet enough. His idea was that you should make as much money as possible doing rehabs without permits, and once the authorities catch on to you, move to a different market, and rinse and repeat.

 After talking to him a little while longer, I came to find out that he had multiple warrants for his arrest, he was always trying to hide from the government, and he was now only investing outside of the U.S. because he couldn't make a deal within the country without getting caught. 

So, if you like going to jail, alienating yourself, and continually running, go ahead and don't pull permits. 

If you want to create a good reputation, be known for your integrity, and have peace of mind with the deals you do, please pull the appropriate permits.