All Forum Posts by: Ty Coutts

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!

Hi Hyokyung,

Investing in the Orlando market can be a good move, especially given your frequent visits and the strong demand for vacation rentals due to attractions like Disney and SeaWorld. The Orlando area remains a popular destination year-round, making it suitable for both long-term rentals and Airbnb. Many investors find the market lucrative, with high occupancy rates and potential for appreciation. As for timing, real estate market conditions can vary, so it's essential to analyze current trends and forecasts for the year. If property values are stable or expected to rise, it could be a good time to buy. Additionally, securing a property now ensures you can enjoy it for upcoming vacations and benefit from potential rental income. However, it is hurricane season and Florida is particularly susceptible to this, so you may have to pay higher insurance premiums. Analyze how this will affect your investment, and if the risks outweigh the benefits, it may be better to wait until after hurricane season. Hope this helps. Feel free to reach out to me directly if you have any other questions or would just like to discuss. 

Hi Sam,

Given your goal of increasing the rental rate to $1,400-$1,500 per month, I would suggest investing in new cabinets and toilets. Replacing the 45-year-old cabinets with new ones will significantly enhance the kitchen's appeal, making the property more attractive to potential tenants. As you're already replacing the old tile floors with LVP, installing new toilets like the American Standard Cadet 3 during this process is practical and will provide a more modern and efficient bathroom setup. These updates can justify the higher rent and potentially reduce maintenance issues in the future. Feel free to reach out directly if you need anything else. Hope this helps!

Hi Joshua,

I recommend leveraging financing options for your investment property purchase. Using a second mortgage or a Home Equity Line of Credit (HELOC) on your single-family home can provide the needed funds for the down payment while preserving your liquid assets. This strategy can enhance your investment portfolio without depleting your savings. Secure pre-approval for the second mortgage or HELOC before committing to the builder to ensure a smooth transaction. Financing can also offer potential tax benefits and help maintain liquidity for future investment opportunities. Feel free to reach out if you have any other questions, want to discuss, or would like to get your financing started!

Hey Tianna,

Given your self-employment status and goal to purchase another property soon, several financing options could work for you. First, consider a Home Equity Line of Credit (HELOC) on your condo, which can provide a flexible, revolving line of credit based on the equity you have built. This approach allows you to access funds as needed, potentially covering the purchase of a slightly distressed property within your price range. Another option is a Debt Service Coverage Ratio (DSCR) loan, which bases approval on the property's cash flow rather than your income, making it ideal for self-employed investors. Hard money lenders are also a possibility, but they often require higher loan amounts and can have steep interest rates. Exploring a combination of these strategies, such as using a HELOC for a down payment and securing a DSCR loan for the remainder, could help you achieve your goal of purchasing additional properties this year.

Hey Seth,

Great to have you here and it is fantastic that you're getting into RE investing. It is the best way to build generational wealth in my opinion. Feel free to reach out to me directly if you have any questions, want to discuss anything, or are looking for financing for your investments!

Hey Adisa,

I am a loan officer so I could perhaps help you secure financing. I also have some great contacts that may work for you if you'd like a referral. Feel free to reach out to me directly if this interests you. 

Hey David,

Selling a rental property in Hawaii while residing in Japan can indeed attract Japanese capital gains tax, as Japan taxes global income of its residents. Unfortunately, Japan does not offer the same tax deferral benefits for 1031 exchanges as the U.S. does. Moreover, Japan provides tax deductions for personal residences but not for investment properties. Moving the property into a revocable trust typically would not help in reducing or avoiding Japanese capital gains tax, as the tax liability still falls on the individual. One potential strategy to consider is waiting to sell the property until after you leave Japan, as this might exempt you from Japanese capital gains tax if you are no longer considered a resident for tax purposes. Hope this helps. Feel free to reach out to me directly if you have any other questions.

In California, the law limiting landlords to a maximum security deposit of one month's rent for unfurnished properties and two months' rent for furnished properties went into effect on July 1, 2024. This law applies regardless of whether the tenant volunteers to pay a higher deposit due to credit issues or any other reason. The intention behind this legislation is to protect tenants from excessive financial burdens. Therefore, even if an applicant acknowledges her credit history and offers a larger deposit, landlords must adhere to the legal limits set by the state.

Hello Nick, 

State Farm dropping your apartment insurance policy for the two 5-unit apartment buildings you manage in California is challenging, but there are several alternatives to consider. You can start by reaching out to independent insurance agents who work with multiple carriers and can provide quotes from various companies still willing to insure rental properties in high-risk areas. Consider specialized insurers like Nationwide, Farmers, or Liberty Mutual, which may offer policies tailored to multifamily rental properties. Additionally, exploring surplus line carriers that handle high-risk properties might be beneficial, though they often come with higher premiums. It’s also prudent to review and update your properties' safety measures, such as installing fire alarms and security systems, as these can sometimes help reduce insurance costs. I hope this helps.