All Forum Posts by: Ty Coutts

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.

Hey Devon,

It sounds like you're at a crossroads with your current duplex situation. Given that your current place is fully covered by rent, moving to a new property where you would have to cover $400-450 more per month could be tough, especially in today's high-rate environment. If you plan to use the remaining HELOC for a DSCR or BRRR strategy, that could help you build more equity, but consider if the current market conditions will lead to higher rates and lower cash flow in the near term.

If your goal is to scale, you might consider holding onto your current duplex for the cash flow and focusing on the BRRR/DSCR strategy, which can allow for more control and potentially better long-term returns. Alternatively, waiting for rates to drop and then moving might give you better purchasing power.

Ultimately, it depends on your cash flow goals, risk tolerance, and long-term strategy. It might make sense to stay where you are and keep building with the BRRR/DSCR opportunities until the market conditions improve for house hacking.

Hi Brian,

It sounds like you’re weighing some great options! Both Raleigh and Greensboro have their advantages, but with your experience in Greensboro and proximity to Cone Hospital, MTR (mid-term rentals) could be a strong option, especially for traveling nurses or medical professionals. This strategy could give you steady cash flow while avoiding some of the volatility that can come with Airbnb. As for Raleigh, if you’ve already seen the success of Airbnb-ing rooms there, it’s worth exploring further, as it’s a growing market with plenty of demand.

For alternative strategies in Greensboro, look into renting by the room, especially for professionals or students. If you decide to go the Airbnb route in either city, be sure to check local regulations around short-term rentals to avoid any surprises. If you have any questions, feel free to DM me.

Hi Tre,

Great to hear you're getting valuable feedback! For affordable and upcoming markets in Massachusetts, look at cities like Worcester, Springfield, and Fitchburg. These areas have more affordable properties compared to Boston and are showing signs of growth, especially with infrastructure and job opportunities increasing. Research local economic trends, rental demand, and any recent or upcoming developments in the area. For a 203k loan, you’ll want to target areas that have properties needing work but also a strong potential for appreciation after rehab. Consider working with local agents familiar with these markets to identify the best opportunities. If you have any more questions, I'd be happy to go through more so feel free to DM me.

Hey Carlos,

Both Spokane and Tucson have their pros and cons for house hacking. Spokane’s tenant-friendly laws could present challenges, but its lower home prices compared to other markets might provide more affordable entry points. On the other hand, Tucson’s landlord-friendly environment could make property management easier, especially with your familiarity with the area. Ultimately, it depends on your comfort level with the local regulations and market dynamics. Consider the property prices, potential for appreciation, and long-term rental demand in both areas. Since you’re pre-approved, weigh the costs, risks, and rewards of each market before making a decision. I'd be happy to walk through any more questions so feel free to DM me.