All Forum Posts by: Ty Coutts

Welcome to the community, Will — and huge respect for taking the time to learn before jumping in. That mindset alone will save you thousands and a few gray hairs. You're asking the right questions, especially around local vs. out-of-state BRRRRs.

local vs out of state, how to decide:

 Staying Local Pros:

• Easier to learn the process hands-on (walk properties, meet contractors, see issues in real time)

• Faster response time when things go wrong

• Simpler team building — you can drive and shake hands

Cons:

• In high-cost areas like NorCal, cash flow and BRRRR math often don't work unless you find a unicorn

• Acquisition costs tie up more capital

• ARV jumps can be slower in soft markets

 Out-of-State Pros:

• Entry price is lower, so your equity can go farther

• BRRRR-friendly markets (Indy, Ohio, KC, etc.) have stronger cash-on-cash returns

• You're forced to build a business, not a job (because you can’t do it all yourself)

Cons:

• Harder to vet contractors and PMs remotely

• If something goes wrong, it's tougher to course-correct quickly

• Trust is everything — and harder to earn at a distance

Many investors I’ve worked with start local for deal #1 or #2 to learn the ropes, even if the numbers aren’t perfect — then take that confidence and equity out-of-state to scale smarter.

Others with super tight local markets (like the Bay Area or L.A.) will build a strong remote team upfront and jump right into affordable BRRRR markets, accepting that they're learning from afar but making the numbers work better.

It sounds like you’re just a step or two away from being ready — paying down that credit card and accessing equity is a solid move. Once you're financially prepped, the next win is clarity: decide whether to learn locally or lean into remote systems, then get a lender and market picked.

Happy to help you map it out or dig deeper into any of the markets or BRRRR financing angles. You've got a strong foundation already!

Congrats on exploring your first BRRRR! Love that you're diving in with something close to home; that familiarity can be a major advantage when you're getting started

For your first deal, especially if you're not planning to scale quickly and are using conventional financing, it usually makes the most sense to buy in your personal name — and here’s why:

Most traditional lenders (especially for BRRRRs using a purchase + refinance strategy) offer better terms, rates, and flexibility when you buy personally. Loans to LLCs often require:

• Higher down payments

• Higher interest rates

• Commercial underwriting

• More experienced borrowers

• Since this is your first deal, buying personally keeps your financing options wide open — especially when it's time to refi.

• You're asking the right questions, and this "test drive" approach with your first BRRRR is smart. Focus on getting this deal done cleanly and profitably — you can always layer in LLCs and asset protection strategies as your portfolio grows.

• Feel free to reach out if you want help mapping the BRRRR financing steps or setting yourself up for a smooth refi later!

Hey Jared — welcome to the group and great question! It’s awesome that you’re bridging the gap between being a licensed agent and really trying to add investor-grade value to your clients. That mindset is gold.

Here’s how I typically break it down with the investors I support (mostly small to mid-size portfolio builders):

1. Initial Screening Method:
Quick math is fine if it's disciplined—like back-of-the-napkin 1% rule or rent-to-price ratios—but I coach people to always follow up with a structured first-pass screen. I personally use a custom Google Sheet for this, built around key metrics like Cash-on-Cash, DSCR, and Cap Rate. The goal isn't perfect numbers—just a "is this worth digging into?" decision in 5–10 minutes.

2. Tools:
Google Sheets all day for flexibility and transparency. I’ve seen clients use DealCheck, Stessa, and BiggerPockets calculators too—great for visual learners or newer investors. Your own tool might be perfect if it’s tailored to Boston’s unique numbers and costs.

3. First Pass vs. Deep Dive:
First pass = Quick ROI, monthly cash flow, and high-level risk (e.g., flood zone, weird zoning, poor layout).
Deep dive = Financing structure modeling (especially if using DSCR, FHA, or creative options), reserves planning, rent comps, and renovation ROI.

4. Red Flags to Walk Away:

• HOA fees that destroy cash flow

• Unrealistic rent assumptions from listing agents

• Poor layout for target tenants (e.g., lots of small rooms in family areas)

• High crime data that contradicts listing photos

Love that you’re building your own tool—that's often the best way to ensure consistency during showings or client presentations. Feel free to DM if you want to swap notes on that or see how other investors are structuring underwriting in today’s market.

Looking forward to seeing more of your posts!

That's a great ARV off of that! Congrats!! Are you doing any other future BRRRRs?

Hey Lucas,

a Fannie Mae HomeStyle Renovation loan can potentially be used for a project like duplexing down a unit, as long as the work is fully permitted and completed by a licensed contractor. The key is that the renovations must be permanently affixed and add value to the property. Since you've been through the ADU process before, you already know the city can require major upgrades like electrical, plumbing, or even underpinning if ceiling height is insufficient and yes, similar requirements could apply when finishing a basement as part of a legal unit expansion.

From a lending standpoint, the ARV (after-repair value) will be crucial. The appraisal will be based on comparable duplex-down units in your area, so doing your homework on local comps is definitely smart. Just be aware that construction cost vs. value-add is a real consideration, especially in markets like Chicago where basement work can get pricey fast.

Happy to chat more if you want to explore how this could look financing-wise. Good luck, sounds like a great plan for both lifestyle and long-term equity!

Hey real estate agents, my intern is hosting an AI class on April 18, at 12pm. He'll be showing off some tools and AI applications that can drastically help real estate agents by keeping you guys more organized and efficient. It'd really help me and him out if we got some people to attend.

Hey Victor,

Given the current interest rates, it’s definitely a challenge to make cashflow positive with those numbers. In Johnson County, Kansas, with single-family homes priced between $200k to $400k, you might find it tough to get positive cash flow unless you're able to adjust the down payment, interest rate, or find a property with a higher rent yield.

Consider looking into properties with lower purchase prices or in areas just outside of Johnson County, where property prices might be lower, yet rents remain competitive. Another option is to target multifamily properties—duplexes or triplexes, which often provide better cash flow per unit.

Also, if you're locked into higher interest rates, refinancing options down the road (when rates drop) could give you some breathing room.

Hope this helps, and feel free to reach out if you need more insights!

Hey Marc,

You can check your local county courthouse or their website for notices of default or upcoming auction dates, as many foreclosures are first listed there. Another option is to keep an eye on public foreclosure auctions in your area, where you can often find good deals directly. Definitely, working with a real estate agent who specializes in foreclosures can give you access to listings that might not be found online.

Hope this helps! If you have any questions, feel free to reach out.

Hey Ron,

I'd recommend using tools like LoanPro or even a custom spreadsheet to track loan details (rates, balances, terms). It keeps things organized and updated. Just set reminders to review them periodically, so nothing slips through the cracks. The best time to refinance is when rates drop by at least 0.5%-1%, or when you have 20%+ equity. Also, if your financial situation changes (like a bump in income), it could be a good time to adjust your loans. Depending on the level of risk the lender is willing to take on and the property situation will be essential to a good rate. If you wanted to reach out to run through any of these situations, feel free to reach out.

Hi there! As a local Colorado loan officer, I’ve worked with clients on projects throughout the Denver metro and I know how tricky the approval process can be. If your friend needs help with financing or navigating any funding options for the rehab, I’d be happy to assist. Feel free to reach out to me, and we can discuss how I can support her project every step of the way!