All Forum Posts by: Ty Coutts

Hello Patricia, it sounds like you’re facing a challenging situation, and you’re exploring creative solutions to keep the property without incurring unsustainable expenses. Like you said, a real estate attorney would be a valuable person to talk to, but here's what I have: 

Considerations: short/long-term rentals, co-ownership

To keep your favorable mortgage rate, you can consider a Joint Tenancy or Tenancy in Common agreement without refinancing. However, this requires careful legal handling.

Other options:

Reverse Mortgage: If your parents are over 62 and the home is their primary residence, a reverse mortgage might be an option to access equity without monthly payments.

Home Equity Loan or HELOC: If you have significant equity, consider a home equity loan or HELOC to cover your parents' rental expenses, then repay it over time.

The Good: Co-ownership can provide financial relief and shared responsibilities. It can also maintain property value while providing potential rental income.

The Bad: Disputes can arise over payments, property use, and management. It’s crucial to have a solid agreement to mitigate these risks.

The Ugly: Without clear agreements, co-ownership can lead to legal battles, credit issues, and potential loss of property.

By carefully planning and seeking professional advice, you can navigate this situation effectively and find a solution that works for you and your family. 

Hello Sandeep,

Buying property in Austin, whether as a primary residence or for investment purposes, is an exciting venture. Given the current market dynamics, I would start by understanding which you seem to have a grasp on. Next, I would get pre-approved for a mortgage, this not only gives you a clear understanding of your budget but also strengthens your position as a serious buyer when making offers. I would also explore all the possible loan options such as a conventional, FHA, or investment property loan. In summary, being well-prepared and informed about the Austin real estate market, coupled with strategic financial planning, can help you make sound decisions whether you're buying a primary residence or an investment property. I hope this finds you well and please don't hesitate to schedule a time to chat with me using the link below if you have any more questions about creative financing options.

https://calendly.com/tycoutts

Hi Shane,

It's generally advisable to maintain separate accounts for operational funds and rental income. This separation helps in maintaining clear financial records and simplifies tax reporting and financial management.

Setting up an escrow account specifically for rental income within your LLC can offer several benefits:

Financial Clarity: It separates rent payments from other operational expenses, making it easier to track income and expenses related to the rental property.
Legal and Compliance: Helps in demonstrating that rental income is kept distinct from personal or other business funds, which can be important for legal and tax compliance purposes.

Tenant Transparency: It provides transparency to tenants and other stakeholders regarding where rental payments are deposited and how they are managed.
While it may not be a legal requirement in all cases, maintaining an escrow account specifically for rental income is a prudent practice that many experienced investors and landlords follow. It simplifies accounting, enhances financial transparency, and supports effective management of your investment property within the LLC structure.

Hope this helps! Feel free to reach out to me directly with any other questions!

Hey Rollin,

When transferring a property into an LLC from a personal loan of a business partner, you do have to update the title to reflect the new ownership structure. While the bank may have facilitated the transfer without issue, updating the title is still important for legal and liability reasons, particularly for tax and asset protection purposes associated with LLC ownership.

The title company has indicated they can handle the title change process, which typically involves filing paperwork with the appropriate local government office, such as the county recorder or registrar of deeds. Fees for this service can vary depending on your location and the complexity of the transfer. Ensuring the title is correctly updated helps maintain clear ownership records and protects your property investment within the LLC structure.

Hope this helps. Please feel free to reach out to me directly if you have any other questions. 

Hey Youri,

Hit me up and we can discuss! I'm sure I can help you find something that works for your unique situation!

Hey Conner,

We do DSCR all the time here at Aslan. Feel free to reach out to me directly if you're still looking!

Hey Olivia,

I am a loan officer and RE investor myself. Great to hear that you're starting your journey!

Hey Renee,

Pros include guaranteed rent payments from the government, a large pool of potential tenants, and potentially lower vacancy rates. Additionally, participating in Section 8 can contribute to your community by providing affordable housing to those in need. Cons might include increased inspections and regulations, potential for property damage, and the possibility of dealing with tenants who have more complex needs.

When contacting your local housing authority, ask about the inspection process, the timeline for getting your property approved, rent determination and payment schedules, and tenant requirements. Also, inquire about any support services available to landlords.

If Section 8 were profitable, offering it as an option could be beneficial. It provides steady rental income and helps diversify your tenant base. However, consider whether you are willing to manage the additional regulatory requirements and the specific needs of Section 8 tenants before deciding. Hope this helps! Feel free to reach out if you have any questions, would like to discuss, or would like to get this process started!

Hi Michelle,

Keeping tenants' security deposits in a separate savings account at an online bank is a common practice and is generally recommended. Some landlords also use escrow accounts for added security and transparency, especially if required by state laws. Additionally, interest-bearing accounts may be mandated in certain jurisdictions, so it's important to check local regulations to ensure you're handling deposits correctly. Hope this helps. Feel free to reach out if you have any other questions or would like to discuss!

Hi Victoria,

To sell your property and notify your month-to-month tenants, you should provide them with a written notice to vacate. Typically, you must give them at least a 30-day notice, depending on state laws. Ensure the notice includes the date by which they must vacate the property. There is no standard form, but the notice should clearly state your intent to terminate their tenancy and the move-out date. Verify your local landlord-tenant laws for specific requirements, as some areas might have different rules regarding notice periods. Hope this helps!