All Forum Posts by: Ty Coutts

Hello Mina Spice. Renting properties to sober living homes in Colorado involves a combination of understanding local laws, finding the right tenants, and ensuring your property meets the specific needs of a sober living environment. Here are some tips that may provide a little guidance:

Understand legal requirements and zoning laws, some municipalities have specific rules about where these homes can be located and how many residents are allowed. Familiarize yourself with the Fair Housing Act, which prohibits discrimination against people with disabilities, including those recovering from substance abuse. Sober living homes often fall under this protection. Ensure your property complies with all local health and safety codes. This might include smoke detectors, carbon monoxide detectors, proper egress windows, and handicap accessibility. Sober living homes typically require certain amenities, such as furnished living spaces, common areas, and kitchen facilities. Consider adding features that support a communal and supportive living environment.

This is a good start, as renting properties to sober living homes in Colorado involves thorough preparation, understanding legal requirements, and establishing connections with reputable operators.

Hello Brandon Sisco, finding the best lender for a 90% loan-to-value (LTV) mortgage based on bank statements can be challenging, as these loans are often geared towards self-employed borrowers who might not have traditional income documentation.

Here are three good options:

1. Quontic Bank offers bank statement loans with up to 90% LTV. Accepts 12 or 24 months of personal or business bank statements. They also have flexible underwriting guidelines for self-employed borrowers.

2. Angel Oak Home Loans specializes in non-QM (non-qualified mortgage) loans, including bank statement loans. It offers up to 90% LTV on bank statement loans. Although, it requires 12 or 24 months of bank statements.

3.Northstar Funding provides bank statement loans with up to 90% LTV. Accepts personal or business bank statements. They offer various loan terms and competitive interest rates.

Hey Jon,

If the seller (note holder) wants to receive cash for the note upfront. This can be achieved through a process called "note selling" or "note assignment" to a note buyer (investor).
The terms of the note (interest rate, monthly payments, duration) are crucial as they determine the value of the note to the buyer. The note buyer (investor) looks for a reasonable return on investment based on the terms of the note. They will evaluate the risk and return profile of the note, considering factors like interest rate, duration, and the creditworthiness of the payer (you as the property buyer). You, as the property buyer and payer of the note, need to ensure that the monthly payments are affordable based on the rental income generated from the property.
The terms of the note (interest rate, monthly payments) should be structured in a way that aligns with your rental income and financial capabilities.

We can go over how to do this if you would like. Feel free to DM me if you need further help.

Hello Jared Schott, regarding your situation, here are some considerations and options for managing the $280,000 gap: 

Second Mortgage: You can seek a second mortgage or home equity loan to cover the $280,000. This will be subordinate to the existing FHA loan, but you'll need to qualify based on your credit score, income, and debt-to-income ratio.

Home Equity Line of Credit (HELOC): A HELOC could also be an option, offering flexibility in how you draw and repay funds, though it might come with variable interest rates.

Balloon Payment Loan: This type of loan can offer lower initial payments with a large lump sum due at the end of the term. Given your expected income increase, you could refinance or pay off the balloon payment when it comes due. However, this carries significant risk if your financial situation doesn’t improve as anticipated.

I hope this helps, and this is just the tip of the iceberg when it comes to mortgage loans. Feel free to message me for more information if needed, I am happy to help!

Hello Rolando De la Cruz, I think I can help with your question. Here's how to navigate the information sharing with different parties involved:

- The seller: generally, you do not need to disclose your house hacking plans to the seller. The seller's main concern is that you are a qualified buyer who can close the deal.

- The lender: when applying for a primary residence mortgage loan, you are typically required to intend to live in the property as your primary residence for at least 12 months. This is especially true for loans with low down payments, like FHA loans with a 3.5% down payment.

- The realtor: like the seller, realtors do not typically need to know your house hacking plans. However, sharing your intentions with your realtor can be beneficial. A knowledgeable realtor can help you find properties that are well-suited for house hacking.

I hope this helps, and good luck with your first deal!

Congratulations on your move @Ryan Fox! An LLC can provide a layer of protection by separating your personal assets from your rental business. There is also an ease of financial management; it's easier to keep business and personal finances separate. Although, there are costs associated with forming and maintaining an LLC, such as state filing fees and annual reports that are to be noted.

It's generally a good idea to keep rental income and expenses separate from your personal finances. An EIN is required to open a business checking account for your LLC.

I would recommend looking into an umbrella insurance policy for your properties. 

Good luck!

Hello all! 

I have a client that keeps finding properties that he wants to put offers on but wants to solidify his Rockstar team of contractors/GC's first before pulling the trigger in this area. Any suggestions or contacts would be greatly appreciated!!

Love this! So many of my clients are out of state investors doing exactly the same thing. (most likely because they almost all come from BiggerPockets ha!)

Please let me know how I can help connect you with others' looking to do the same or if I can help run super quick estimates and numbers for you or anyone you are working with for the flips. I work closely with 7 or 8 investors that all specialize in fix&flip as well as "fix&rent" type loans and can help provide insights and rate quotes/cost total estimates if needed!

First off, I am sorry for the loss you suffered during the fires. I have many friends that are from the area and it was truly a tragedy for so many.

The math behind if this is going to be worth it bottom line or not would really come down to what rate you would get on the additional financing and if your rent can out weigh the total monthly mortgage cost. (or at least get it down to where the overall appreciation of the house year over year and tax write-off benefits that you could also take would leave you in a place that is still "net positive")

I would love to help break down multiple different paths/options for you and see if there are any that make sense if you want to reach out to me via direct message, text or email.

Also, I know the FHA 203(H) program for natural disaster's is an AMAZING loan program that not many people know about. It allows people who have lost their home in a natural disaster to be able to buy or build a new home with 0% down. Here is more info on it, but if you know anyone else that is suffering be sure to spread the word! Any lender that can do FHA programs can help them with this if they are approved and it could truly help so many people!

https://www.hud.gov/program_offices/housing/sfh/ins/203h-dft 

I love this!! A ton of great information all in one spot! I get asked so many questions daily about DSCR loans by my clients and agent partners and this is a very neat way to sum up the majority of the common questions.

Thanks for sharing for everyone on the community!

We just recently added an investor that allows this DSCR ratio to be determined by short term rent averages rather than the traditional long term rent rates which obviously can vastly impact the ability to hit that 1.0 ratio. Have you been seeing the same lately?