All Forum Posts by: Ty Coutts

To start your journey, I always suggest looking into a property that you can rent out to cover your mortgage payments and start cash-flowing. There truly is no better way to build generational wealth than RE investing! Please feel free to reach out directly if you have any questions, or if you would like to discuss some investments/financing. Great to have you here Ivan!

Investing in out-of-state real estate, such as in St. Louis, MO, has both pros and cons. On the plus side, St. Louis offers lower property prices and potentially higher rental yields compared to many California markets. The cost of living and doing business is generally lower, which can translate to better cash flow. Additionally, the city's diverse economy and revitalization efforts in certain neighborhoods can present promising investment opportunities. However, there are also challenges to consider. Managing properties remotely can be difficult, requiring a reliable local property management team. Crime rates in certain areas of St. Louis are higher than the national average, which can impact tenant quality and property values, so thorough neighborhood research is essential. Understanding local market dynamics, building a trustworthy local network, and being prepared for potential travel are crucial steps to mitigate these challenges and make informed investment decisions. Please feel free to reach out to me directly if you have ay other questions, want to discuss some possible investments, or if you would like to talk financing!

Given your background and interest in foreclosure and pre-foreclosure purchases, here are some pieces of advice to help you succeed in this niche market. First, networking with experts is crucial. Join local real estate investment groups, attend industry conferences, and seek out mentors with extensive experience in foreclosure properties. Learning from their successes and mistakes can accelerate your growth. Partnering with specialized real estate attorneys can also provide invaluable legal guidance, helping you navigate the complexities of foreclosure laws, title issues, and potential legal pitfalls. This can save you from costly mistakes. Additionally, thorough due diligence is essential. Continue honing your skills in reading court documents and conducting title searches to ensure clear titles and understand lien priorities, avoiding surprises post-purchase. Financial preparedness is also key. Maintaining liquidity will allow you to take advantage of opportunities quickly, moving fast when a good deal arises. Staying informed is another important aspect. Keep up with local foreclosure auction schedules and market trends, regularly watching auctions and monitoring pre-foreclosure listings to identify potential deals early. Building a strong team is vital as well. Leverage your connections with rehab contractors and general contractors to efficiently manage property renovations and repairs, maximizing property values and turnaround times. Lastly, invest in advanced courses and resources that go beyond surface-level information, seeking specialized training in foreclosure investing that covers in-depth strategies and risk management. By following this advice, you'll be well-positioned to succeed in the foreclosure market. Feel free to reach out to me directly if you have any other questions, or you would just like to discuss!

Hi John,

Converting your existing home in Castle Hills into a long-term rental while managing it remotely from Austin is a feasible endeavor, but it does come with its own set of challenges and considerations. Given your circumstances and goals, hiring a property manager could be beneficial, especially since you won't be in the same city. A property manager can handle tenant interactions, maintenance issues, and local legalities, providing peace of mind and freeing up your time. However, if you choose to manage the property yourself, ensure you have a reliable system in place. Begin by setting up online tools for rent collection, maintenance requests, and communication with tenants. Establish a local network of trusted professionals, such as a handyman, plumber, electrician, and a local real estate attorney who can address urgent issues promptly. Regular inspections are crucial to maintain the property’s condition; aim to visit at least quarterly if possible, or hire a property manager to conduct these inspections for you. Additionally, having a real estate agent who understands the local market can be invaluable for pricing and tenant placement. By assembling a strong team, including a property manager, maintenance professionals, and legal support, you can effectively manage your property remotely and focus on building equity and future investment opportunities.

The VA home loan can be a powerful tool for purchasing a multi-family property, offering benefits like no down payment and competitive interest rates. However, it's essential to work with a knowledgeable lender and ensure the property meets VA requirements. If you have further questions or need more specific advice, please message me and I'm more than happy to help.

When buying a home for personal use, the best months to secure a property at a lower cost are generally from late fall to winter, specifically November through February. During this period, there is typically less competition from other buyers, as many people prefer to move during the warmer months or avoid house hunting during the holiday season. As a result, sellers who list their properties during these months may be more motivated to negotiate on price, offering better deals for buyers. Although market fluctuations and regional differences can impact these trends, targeting the late fall and winter months usually provides a greater chance of purchasing a home at a lower cost.

Hey Ellen,

Congratulations on your new property in Providence! Firstly, transparency is key. It's generally advisable to inform tenants about rental increases or changes to lease terms as soon as practical. Since you're moving in soon, having face-to-face conversations can establish a personal connection and show your commitment to fair and clear communication. 

For tenants with leases expiring in April 2025, consider discussing the rental increase sooner rather than later. Providing them with ample notice allows them time to plan and adjust financially. You can outline the reasons for the adjustment, such as market rates or property improvements, and emphasize your willingness to work with them during the transition.

Regarding the tenant you plan to ask to vacate, approaching this conversation tactfully is crucial. If you anticipate challenges, it might be strategic to wait until closer to the 90-day notice period required by law. This approach minimizes potential friction while still providing sufficient time for them to make arrangements.

Using certified mail for official notices ensures legal compliance and provides a paper trail for documentation purposes. Hope this helps! Feel free to reach out with any other questions!

Here's a breakdown based on your examples:

Carpet, Vinyl Flooring, New Toilet, New Vanity, New Tub: These items are typically considered assets because they are permanent improvements to the property that provide lasting benefits.

Plumber Labor for remodel: Labor costs for installation or repairs are generally categorized separately from materials. They are often classified as operating expenses or maintenance expenses rather than capital improvements (assets).

Washer/Dryer/Stove/Refrigerator: These are assets as they are considered durable goods that will benefit the property over an extended period.

New Baseboards/Trim, Doors: These are generally considered assets because they enhance the property's value and are not typically replaced frequently.

Furnace/AC: These are significant components of the property and are categorized as assets due to their long-term benefit.

Paint, Light Fixtures: These can be a bit nuanced. Generally, maintenance supplies like paint are categorized as supplies, while light fixtures can sometimes be categorized as assets if they are permanently installed.

Fencing, Lumber for deck remodel, Roof replacement: These are typically considered assets because they are substantial improvements to the property that enhance its value and longevity.

In terms of tax implications, categorizing expenses correctly can impact how they are treated for depreciation or immediate expensing under tax laws. Assets are typically depreciated over time, while supplies and maintenance expenses are deductible in the year they are incurred. Depreciation allows you to spread out the expense of assets over several years, reducing taxable income each year.

If you need further clarification, financing for your projects, or just have more questions please feel free to reach out to me directly.

Hey Michael,

When assessing the square footage of a property, it's crucial to have accurate information to make informed choices. County records and software listings typically provide the total square footage based on documented measurements, which in this case is 1,795 sq ft.

The discrepancy arises because the seller claims the downstairs, used as a business space, is also 1,700 sq ft, making the entire property 3,500 sq ft. To clarify this, you may need to conduct a thorough physical inspection or hire a professional appraiser or contractor to measure both levels separately. This will provide a definitive answer regarding the total square footage and ensure you base your decision on accurate data.

It's important to verify all aspects of the property's description and measurements to avoid any surprises or complications later on. Feel free to reach out if you have any other questions or if you would like to discuss!

Feel free to reach out if you have any other questions!