Well it really depends. Some parts of the country can fine you or make you tear the unlicensed work apart. Using licence can add elements of trust and professionalism(that is debatable), but generally speaking licensed contractors are expensive, sometimes very expensive. This will increase rehab costs and can sometimes blow final asking price out of proportion. The result is that you can end up with a renovated house sitting there for months or years unless you cut prices but you'd still take in some loss.
An unlicensed contractor can be cheaper but can be less professional. Don't get me wrong some are professional they just haven't gotten their license yet. But they will save tons of money.
The trick is to balance cost and work quality. At least that is my opinion and think I am right because being a contractor broker I have witnessed some good some bad and some ugly. I also understand the balance of cost/work peferctly because I provide licensed contractors for the price of an unlicensed one. At least I try to and that is the whole trick of the game. Balance.
I hope my answer serves you well.
