All Forum Posts by: Hamidou Keita

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $349,000
Cash invested: $20,000

Side by side Duplex

What made you interested in investing in this type of deal?

The potential for house hacking and midterm rental.

How did you add value to the deal?

Rehab one unit

 Thank you.

I want to share a cautionary experience in case it helps others avoid the same headache.

I hired a general contractor (GC) here in Tucson, Arizona for a cosmetic remodel on my property. Before we started, I specifically asked him if a permit was needed. He said no, claiming that since we weren’t adding rooms, moving plumbing, or breaking down walls, it wasn’t required. He also said he was licensed for both residential and commercial work.

He seemed professional at first, and I paid a 33% deposit upfront. But soon after the project began, he started asking for more money before finishing major parts of the job. I ended up paying almost the full amount before realizing something wasn’t right.

Then a city inspector stopped by randomly and issued a stop work order, saying the work did require a permit. That’s when things fell apart. The GC became uncooperative, wouldn’t assist with the permit application, and once I obtained the permit myself, he refused to be listed as the GC and completely ghosted me.

I then consulted another GC, who helped me confirm that this person is not licensed at all, despite his earlier claims. I have since filed a complaint with the Arizona Registrar of Contractors (AZ ROC). They confirmed he is unlicensed and have opened an investigation.

Luckily, I paid with a credit card. I’m currently disputing the charges, and the credit card company has frozen the funds while it’s under review. They told me if the contractor can’t prove he did the work as agreed, I may be able to recover the money.

I also learned that because he’s unlicensed and abandoned the project, he likely can’t place a mechanic’s lien on my property.

 Hi Jackson,

Thank you for the insight. I would like to get the contact of someone who can help. My number is 5203141342.

Best

Summary of Duplex Renovation and Permit Issue – Tucson, AZ

I purchased a duplex in December 2024 as a house hack. I moved into the fully renovated unit and immediately hired a general contractor (GC) to renovate the second unit. The scope of work included:

• New flooring throughout

• Replacement of 2 windows and 2 doors

• Full renovation of the kitchen and bathroom

• Installation of new ceiling fans and light fixtures

• Addition of a living room ceiling fan and bathroom ventilation

Before beginning the renovation, I asked the GC whether any permits were required. He told me none were needed, so we proceeded. The work was expected to be completed by late January 2025. Our payment agreement was structured in three installments, and by early February, I had paid approximately 90% of the total cost.

On February 6, 2025—the day the GC said the work would be completed—a City of Tucson code enforcement officer showed up in response to a neighbor’s complaint. I was issued a code violation and ordered to stop work immediately until the proper permits were obtained.

I asked the GC to help with the permitting process, but he was reluctant. After a few days without progress, I applied for the permit myself. Unfortunately, my initial submission was incomplete, which delayed the process. Two months later, the GC finally provided a handwritten sketch outlining the work that had been done, but he still refuses to be added to the permit as the contractor of record.

He previously claimed he would create a City of Tucson (TDC Online) account so he could be added to the permit, but I have not heard from him in over a week. He is not responding to calls or messages.

At this point, I’m unsure whether I should continue waiting or hire a new GC. I’m aware that hiring a new contractor may cost more, but ongoing delays will also increase my holding costs. Importantly, the City of Tucson requires that any renovation work exceeding $1,000 be performed by a licensed contractor or the property owner. However, if I apply as a homeowner under the “DIY” exception, I will not be allowed to rent out the unit for at least one year.

I’m looking for guidance on how best to proceed—either by pursuing a different licensed contractor to finalize the permit and complete the work or exploring any other legal options available to resolve this issue.

Hi Trace, I will be happy to connect. I am also an out of state investor in Fort wayne.

 Great tips Sylvia!

Hello Roopy,

As a fellow immigrant who navigated similar uncertainties, I can definitely relate to your situation. Like you, I was eager to start investing in real estate but decided to hold off until I had more visa security. When you're on a temporary visa, especially without a clear path to permanent residency, the risk involved can be substantial—both financially and legally. Here's why I waited:

1. Visa Uncertainty: With a temporary visa like an F1 CPT or even an H1B, there’s always a chance that, due to lottery outcomes or policy changes, the path to a green card could be delayed or not happen at all. For me, waiting until I had my green card was crucial. Without it, there's no guaranteed legal status, which could lead to being forced to leave the U.S. and potentially manage property from abroad—a complex and often costly endeavor.
2. Real Estate Ownership and Rentals as a Non-Resident: If you do decide to purchase property and then move abroad, you can keep it as an investment, but it requires navigating tax regulations specific to non-resident foreign property owners. While passive rental income is possible, managing it across borders can be tricky and may incur extra costs like foreigner withholding taxes and specialized tax filing.
3. Financial Accounts (Roth IRA and HYSA): From what I understand, if you were to leave the U.S. without citizenship or a green card, your ability to contribute to a Roth IRA would be affected as you would likely no longer have U.S.-sourced income. You might still maintain your HYSA, but it could require tax filings depending on the country you move to and U.S.-specific taxation rules for foreign investors. However, the accounts themselves wouldn't need to be closed, though non-resident taxation can add complexity.

In my case, waiting for a clearer visa status provided peace of mind and allowed me to focus my resources toward securing my green card first. Real estate is certainly possible as a non-citizen, but it can involve added layers of complexity when managing from abroad.

Best of luck as you navigate your options, and feel free to reach out with more questions!

Warm regards,

Hamidou

 Thanks for sharing. I am actually closing on a duplex now and i would like to house hack it and rent the other unit as a midterm rentals. I would love to connect with you to share ideas.

Hamidou