All Forum Posts by: Ty Coutts

Sounds like an amazing deal you found!! 

Moving in to one of the units as a primary or did you go straight investment purchase?

Love it!! Sounds like a great investment!

Did you rehab the apartments yourself or higher out?

Would love to catch up on what your goals are from here and how you plan to grow. Let me know if you ever have any questions!

Looks like you have a ton of great connections already!

Let me know if you ever have any additional questions as I love to see people succeed in their dreams! 

Hello @Chris Arling!

I love the FoCo area! I am a Colorado native and my brother lives up there and works as the VP of a Architect/Development firm so I am up there a lot.

Would love to connect with you about your goals in real estate and see if I can help provide any new nuggets you may not have picked up from the books or podcasts yet.

We bought our first house and rented to traveling nurses as a duplex disguised as a SFH in the Denver area and then moving on to do it again in the Arvada area. There is so much rent potential up in your neck of the woods, I know you could kill it up there as you look to expand your portfolio!

Would love to nerd out on all the insider tips and knowledge to how to make things go smoothly on the financing end of the equation if you ever want to meet up for some coffee some time!

Looks like you already found some amazing advise @Madison Sloan and good for you to be on here asking these questions in the first place at such a young age! You will certainly go far if you keep up the thirst for knowledge about this.

Hard to touch on anything that hasn't already been said, but when it comes to your question #3 specifically, I would love to know more to help better answer.

How long have you had your small business? Have you formed an LLC or S-Corp?

Most conventional loans that offer the lowest down payment to you will look to have 2 years of this income reported on taxes. There are other creative ways to calculate your income when self-employed, but they would start at 10% down minimum and that may be a bit much since you are just starting out.

However, you can always try to turn that part time W2 into full time just temporarily as you apply for loans or find a different salary position and make life easiest for yourself when getting qualified. We can use school as part of your 2 year work history so chances are you wouldn't need to provide any other proof of past employment either. 

Let me know if this helped and if you have any other questions!

Hello @Dan V.!

What type of property are you looking at in VA? Single family, multi unit, mixed use commercial?

Plenty of different options when looking to vest in an LLC, let me know if you have any questions and feel free to reach out at anytime!

Hello @Skyy Dugger

I would love to help clarify things for you, but I have a few questions about the scenario. 

Are you wondering how lenders calculate your passive income from STR properties that you already own? Or how we calculate potential future income on a property you are looking to buy?

In a very broad sense, for conventional financing you typically have to have reported STR income for 2 years on your taxes in order to use this as part of your personal income when looking to qualify.

If you are looking into more non conventional financing, there are programs that can take just 1 year of STR income into consideration as well as other programs that can even take the previous owners STR income into consideration for your personal future income calculations when looking to buy the property.

Tons of complexity and options when it comes to STR's in the lending world, so hopefully this helps and if you have more questions, don't hesitate to reach out!

I bought this one in early June 2022 but already appreciated 20k which is nice! When did you get your last deal @Eric Yu

@Kyle Spearin, just got under contract today! Another SFH that has a separate entrance to the basement near the old towne Arvada area here in Colorado which is STR friendly. Very excited to have essentially 4 doors in jus 9 months!

I noticed you have done a flip, did that experience go well for you?

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $589,900

Single Family with separate entrance basement and full kitchen downstairs so able to house hack while living here at fixed it up. Successfully just rented the top "unit" out as we move to get our next one and together the two rental spaces will let us cash flow nicely.

What made you interested in investing in this type of deal?

The location of the hospital and surrounding area was perfect for medium term rental of traveling nurses. Plus I knew there was some easy value add opportunity within the home itself.

How did you find this deal and how did you negotiate it?

Waited patiently watching it go off and on the market 3 separate times. Came in with a low ball offer and made the sellers pay 27k in needed repairs that we allowed an escrow holdback for.

How did you finance this deal?

Conventional financing

How did you add value to the deal?

New kitchen floors, backsplash and countertop. New stainless steel appliances. Two bathroom remodels. Painted every wall. New landscaping in backyard.

What was the outcome?

Was able to get enough equity for my HELOC to buy my next place and leave this one fully rented and cash flow positive

Lessons learned? Challenges?

Learned a lot about tenant management, budgeting and design plans

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Travis Beers was our Rockstar agent and of course teammates at Aslan Home Lending helped with the loan!