All Forum Posts by: Ty Coutts

Given that you plan to live in the South Carolina property for 2-3 years before turning it into a rental, I would lean towards using the HELOC for the down payment and getting a traditional mortgage. However, this recommendation could change based on specific interest rates, your personal financial situation, and long-term goals. I strongly advise consulting with a financial advisor or real estate professional who can provide personalized advice based on a comprehensive review of your situation.

Rein, 

First, understand legal framework and financing options first. Then, I would assess the income potential using each option. Remember, mobile home park investments can be complex, especially for first-time investors. Take your time to thoroughly understand the opportunity and don't hesitate to seek advice from experienced professionals in real estate investment and mobile home park operations.

Hello Tyler,

For a more short-term strategy, I would consider holding off on Refinancing Property 2. Given the high interest rates and the need for additional cash, it might be better to wait until market conditions improve. Consider using the $100,000 as a down payment for a new primary residence. This would reduce your monthly living expenses and allow you to build equity. Explore FHA or conventional loans based on your eligibility and current market rates.

For a medium/longer term strategy, keep an eye on interest rates for potential refinancing opportunities for Property 2 when rates are more favorable. Focus on building equity in your new primary residence and continue to manage your rental properties efficiently. Once you have stabilized your primary residence and rental properties, consider additional real estate investments using the equity you build.

I hope this helps!

Hey Andre,

To complete your DADU project, you can use your $227,000 HELOC and consider getting a construction loan for the additional funds needed, such as $100,000. This combination would cover the total cost of the build. Once the DADU is finished, you can refinance your property, ideally through a cash-out refinance, to pay off both the HELOC and the construction loan. This would consolidate your debt into a single mortgage with better terms. It's a good idea to talk to a lender to ensure you meet all the requirements and get the best deal, so if you want to discuss please feel free to reach out to me directly!

Hey Darcy,

Congratulations on closing on your first rental property! As you look to scale your portfolio, first, ensure your mortgage terms allow for flexibility, such as the ability to refinance or access equity. Making a larger down payment can improve your loan terms, but keeping some cash reserves is also crucial for unexpected expenses and future investments. Consider tapping into the equity of your first property once it appreciates, using that as a down payment for your next property. This strategy can help you expand your portfolio without needing extensive cash reserves each time. Additionally, maintaining a strong credit score and keeping your debt-to-income ratio in check will make it easier to secure financing for future properties. Planning ahead and staying financially disciplined now will set you up for successful growth in the years to come. Hope this helps! Feel free to reach out to me directly if you have any other questions or if you would like to discuss. And of course, if you want to talk financing hit me up!

Hey Jacob,

It's great to have you here. LMK if you want to connect. I am an experienced LO and I also invest in RE myself. 

Hey Miciah,

Given your situation, it might be worth starting with local investments in Phoenix even though prices are higher. Being close to your properties means you can easily manage them and stay informed about the market. Look into emerging neighborhoods or smaller multi-family units that might be more affordable. If local deals remain out of reach, exploring out-of-state opportunities could be a good backup. Just make sure to research thoroughly and consider working with a property management company if you invest far from home. Balancing local and out-of-state options might be the best way to build your portfolio. Feel free to reach out to me directly if you have any questions or need help with financing for your investments!

Hey Cameron,

I am an experienced LO and would love to connect! Feel free to DM me if you're interested!

Hey Pat,

When reaching out to the homeowner about wholesaling, it's best to start once you've got a good handle on the property's value and condition. You’ll want to have your numbers in order—this means understanding how much the property could sell for, what repairs might be needed, and what kind of offer makes sense for you.

When you do contact the homeowner, be upfront and personable. Let them know you're interested in buying the property and explain that you’re considering wholesaling it, which means you might find another buyer who will take over the deal. Assure them that this process can lead to a fast and smooth transaction without the usual market hassles.

Be honest about the property’s condition and why your offer might be lower than the asking price. Emphasize that your offer reflects the necessary repairs and the costs associated with fixing up the property. Make it clear that your goal is to help them sell quickly and easily, and that you’re here to make the process as straightforward as possible. Hope this helps! Feel free to reach out if you need help with any part of this process, or if you have any other questions!

Hey Thomas,

For the highest cash flow potential in Florida’s West Coast or panhandle, consider the following areas:

Tampa Bay Area: Cities like Tampa and St. Petersburg offer robust rental markets with steady demand. The rental yield is strong due to a growing population, a diverse job market, and a relatively lower cost of living compared to other major Florida cities. St. Petersburg, in particular, has a favorable rental market for single-family homes.

Clearwater: Close to Tampa, Clearwater has a strong rental market with attractive cash flow potential. Its appeal as a desirable coastal city helps maintain rental demand.

Fort Walton Beach: Located in the Panhandle, Fort Walton Beach and its surrounding areas offer a mix of steady rental demand and affordability, providing good cash flow opportunities, especially for single-family rentals.

Pensacola: This city offers relatively high rental yields due to its affordable property prices and stable rental demand, making it a solid choice for cash flow-focused investments.

These areas balance stable cash flow with potential for modest appreciation. Given your preference for cash flow over appreciation, these locations offer good prospects for single-family residences with lower risk and strong rental demand. Hope this helps! Please feel free to reach out directly if you have any other question, or if you would like to talk financing!