All Forum Posts by: Ty Coutts

Hey real estate agents, my intern is hosting an AI class on April 18, at 12pm. He'll be showing off some tools and AI applications that can drastically help real estate agents by keeping you guys more organized and efficient. It'd really help me and him out if we got some people to attend.

Hey Victor,

Given the current interest rates, it’s definitely a challenge to make cashflow positive with those numbers. In Johnson County, Kansas, with single-family homes priced between $200k to $400k, you might find it tough to get positive cash flow unless you're able to adjust the down payment, interest rate, or find a property with a higher rent yield.

Consider looking into properties with lower purchase prices or in areas just outside of Johnson County, where property prices might be lower, yet rents remain competitive. Another option is to target multifamily properties—duplexes or triplexes, which often provide better cash flow per unit.

Also, if you're locked into higher interest rates, refinancing options down the road (when rates drop) could give you some breathing room.

Hope this helps, and feel free to reach out if you need more insights!

Hey Marc,

You can check your local county courthouse or their website for notices of default or upcoming auction dates, as many foreclosures are first listed there. Another option is to keep an eye on public foreclosure auctions in your area, where you can often find good deals directly. Definitely, working with a real estate agent who specializes in foreclosures can give you access to listings that might not be found online.

Hope this helps! If you have any questions, feel free to reach out.

Hey Ron,

I'd recommend using tools like LoanPro or even a custom spreadsheet to track loan details (rates, balances, terms). It keeps things organized and updated. Just set reminders to review them periodically, so nothing slips through the cracks. The best time to refinance is when rates drop by at least 0.5%-1%, or when you have 20%+ equity. Also, if your financial situation changes (like a bump in income), it could be a good time to adjust your loans. Depending on the level of risk the lender is willing to take on and the property situation will be essential to a good rate. If you wanted to reach out to run through any of these situations, feel free to reach out.

Hi there! As a local Colorado loan officer, I’ve worked with clients on projects throughout the Denver metro and I know how tricky the approval process can be. If your friend needs help with financing or navigating any funding options for the rehab, I’d be happy to assist. Feel free to reach out to me, and we can discuss how I can support her project every step of the way!

Hi Jamie,

Given the current market conditions in Tampa, it may be more strategic to fix and flip in 2025, especially if property values are volatile, or higher holding costs (like insurance or taxes) are a concern. If the market is appreciating, holding and renting through the BRRRR strategy could be viable, but you'll want to ensure that rental demand and long-term cash flow align with your investment goals. Keep a close eye on interest rates, rental market trends, and local appreciation forecasts to decide which path makes more financial sense. If you have any more questions, feel free to DM me and we could go through some financing options as well.

Hey Sophia,

It seems like you're trying to decide between keeping or selling your rental properties. For calculating IRR, use the total cost of acquisition—this would be the mortgage balance plus the 50% buyout equity and any closing costs.

Regarding refinancing, assuming the loan under the Garn-St. Germain Act could work if you qualify, but if you can’t refinance right away, you’ll need to consider future plans.

For whether to sell or keep the properties, selling gives you liquidity and eliminates mortgage obligations, but you miss out on future appreciation. If you can’t increase cash flow or refinance soon, selling could be the right move. Alternatively, keeping the properties offers long-term equity growth but with lower cash flow.

Ultimately, weigh your ability to manage future cash flow, your risk tolerance, and your long-term goals. If uncertain, a financial advisor or real estate attorney can provide tailored guidance. I'd also be happy to answer any more questions so feel free to reach out via DM.

Hi Jose

It sounds like you're trying to take advantage of favorable terms, but lenders often differentiate between primary residences, second homes, and investment properties. Buying as a vacation rental could potentially qualify for a lower interest rate, but you’ll likely need to provide proof of personal use (even if minimal). As for holding periods, some lenders may require you to occupy the property for a short time before converting it to a rental (typically 6-12 months), so check the fine print on that.

If you’re set on making it an investment property, you may need to work with a lender who specializes in investment properties, even if it means a slightly higher rate. Another option could be exploring creative financing like seller financing or partnering with others to leverage better terms. If you have any more questions or need help with the financing feel free to DM me.

Hi Adam,

It sounds like you're taking a thoughtful approach, but there are a few things to consider. First, the market conditions in Northeast OH may be influencing those lower projected returns, especially with rising rates and more limited inventory. Don't be discouraged by the lower returns—house hacking is often about long-term wealth-building, and your primary residence can offset some of those mediocre numbers.

Make sure you're accounting for local trends and realistic rents—sometimes expected rent growth is overly optimistic, or costs like repairs might be underestimated. Since you're still in the early stages, don’t rush; it’s better to wait for a better deal than to overpay or settle for marginal returns.

If you're getting 0-4% COC and 8-15% IRR over 10 years, those are still decent returns, especially in a less competitive market. Consider exploring alternative financing strategies (like seller financing or creative financing) or targeting off-market deals to find better opportunities. Patience and persistence in this market can pay off in the long run!

Hi Michael,

With property prices appreciating, a 10% down payment can make it a bit more challenging, but there are still options. One potential route is using a FHA 203k loan for the purchase and rehab if you're okay with living in one of the units for a period of time. Another option is a hard money loan to cover both the purchase and rehab, which can then be refinanced with a DSCR loan once the rehab is complete. Many hard money lenders offer loans that include rehab costs, which could be beneficial for your BRRRR strategy.

Alternatively, if you find a lender that offers a DSCR loan with a lower down payment requirement, that could be another route to explore, especially if you already have positive rental income history. Be sure to shop around for the best terms and understand the refinancing process post-rehab to ensure your numbers work. If you had any more questions, I'd be happy to go through them, so feel free to DM me.