Needing a contractor to do all work if you're not homesteading?

Question

Hello! 2nd time "flipper" here - my husband and I are casual flippers, in the sense that we do it as a side gig and don't aggressively work to get things done ASAP to save money.
We are in Minnesota and recently bought a 2nd house in Maplewood and what a NIGHTMARE that city has been. You literally need a permit for everything, even replacing a laundry tub and bathroom vanity. During an inspection on an egress window, we got accused or altering a wall arch we'd opened up and rebuilt due to water damage and issued a stop work order. That's mostly cleared up now, but after talking to inspector he implied that if the home isn't homesteaded, we shouldn't be doing any of the work and should be contracting it out. I was trying to get some clarification regarding whether or not we could replace some 1/2" water pipes with 3/4" by ourselves, but he made it sound like it had to be a licensed plumber to even do the basics like replace the sink and bathroom vanity if it's not homesteaded.
Is that true? How do flippers here in MN make any money if that is the case? We'd easily be in the hole by now just based on the tiling and drywall work alone.
Hoping for some advice / shared stories...I'm paranoid to do anything with this house now, it feels like this inspector is on a bit of a witch hunt!

Soda P. · Answer

Well, the only answer I was looking for is how on earth would someone make money doing that. I've pulled permits for all the work that requires it (including the one I missed for the door). You'd have to be a special kind of bold to try to skirt the permit system in general, let alone with having an inspector already asking questions. So not really a question/answer I'd get ruffled over.

While "Pop" would be an intriguing hippy addition to my name, I'm not that cool.

John Woodrich · Answer

@Matt Higgins I like that they asked the question, said they were going to get a license, then wanted to go off record quickly!  I agree after the drinking part, try to stay off my phone!

Going to send you a message related to your situation.

Matt Higgins · Answer

@John Woodrich ........there’s been a few nights of beer drinking in my life where I wished I could just switch my status to “account closed” and disappear the next day

Great answer to her question though, do you think it’s worth getting contractors license considering my situation?

John Woodrich · Answer

Account Closed to flip homes you are required to have a contractor's license in MN or have a contractor complete the work.  Here is the information for you to read, it falls under "builds or improves for resale or speculation" https://www.dli.mn.gov/busines...

MN DLI requirement are for general building including pulling a permit for an egress window or any general building permits.  Plumbing and electrical work has to be completed by a licensed plumber/electrician.  You can't do the work even if you have a contractor license.

The inspector is doing his job and letting you know the law at the same time, some cities seem a bit more lax on this.  Right now it sounds like he is tipping you off to issues and being a pain but if he sees you replaced all the plumbing without a permit that is a quick way to get a final stop work order and him require all licensed contractors.

Other flippers make money by having people who can work at a reasonable price and they find good deals.  You know what they say, "flippin' ain't easy"

John Woodrich · Answer

@Soda P. you are correct, it has been a lot tougher to find feasible flip properties lately.  Matt (above) and myself also flip properties, the margins have to be a bit bigger to deal with the licensing side of things and as the market has been rising cities have tightened their belts a little bit on contractors and investors.

When I got started in 2007 I did everything wrong, the cities knew it but they were just happy that we were fixing some of the dumps and never mentioned it to me.  I got a license because I started getting some grief over it.

John Woodrich · Answer

@Soda P. we see people come on here often who ask one question and leave, it typically happens when someone doesn't receive the response they were hoping for and it could be tracked back to them at one point.  For example, if I were to make the above post, received advice, then decided to replace all the plumbing on my own.  I wouldn't necessarily want it out there that I was going against any licensing rules.

I learned quite a bit in the contractor course and hopefully you do also.  The test is a matter of learning the code book and a little memorization.

So....  because of auto-fill issue you decided to register your real name which is Soda P. as in Soda Pop?

Soda P. · Answer

Actually, when I registered it auto filled my information with a family member's (who works in cyber security and freaked about their full name being on the forum) and customer service wouldn't let me change it. I also couldn't modify my post or change anything in it. The best I could Do was hide the last name and show the last initial.

...but good to know that you guys already have me all figured out and are so insightful you have already determined that a) I have a drinking problem and b) was so eager to go off record.

I've already applied for the contractor license, but thanks for your feedback and judgements.

John Woodrich · Answer

Account Closed Kaplan does a pretty good job, getting a license is largely about learning the code book.  Believe it is a 2 day course.

Account Closed · Answer

Thanks! I will pursue a license.

Needing a contractor to do all work if you're not homesteading?

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