All Forum Posts by: Ty Coutts

Sounds great. Give me a call whenever so that we can discuss further. My cell is below, have a great day!

Hello, Carrie Cavender, I am a mortgage loan officer, and I think I can help with your situation. I understand that life is unpredictable, and selecting the proper mortgage on your home is crucial. I would love to help you find the best solution to your troubles, please call me at the number below if you're interested.

719-641-5169

Also, what state are you in?

Have a great day!

Hey Jordan,

There are a few pros and cons to consider for each option here.

Keep the Current Property and Increase Cash Flow
Pros:

Stable Income-Your current property is paid off and cash flowing $1,000 per month after expenses. This provides a steady income stream with minimal risk.

Appreciation Potential-The property has appreciated significantly since purchase, and you could continue to benefit from further appreciation in the future.

Minimal Hassle-You're already familiar with the property, and since it's paid off, you don't have mortgage payments or associated risks.

Cons:

Limited Portfolio Growth-Keeping the property means your investment portfolio remains concentrated in one property. Diversifying your portfolio can reduce risk and potentially increase overall returns.

Opportunity Cost-You might miss out on potential opportunities to leverage your equity and acquire more properties, especially in a market where finding cash flowing properties is challenging.

Pursue a 1031 Exchange
Pros:

Portfolio Expansion-A 1031 exchange allows you to diversify and increase your investment portfolio by acquiring multiple properties. This can potentially enhance long-term wealth building.

Tax Deferral-By reinvesting your proceeds into like-kind properties through a 1031 exchange, you can defer capital gains taxes, allowing you to reinvest more capital.

Market Timing-Despite the competitive market, a 1031 exchange gives you a defined timeline to identify and acquire properties, potentially putting you ahead of other buyers who might not be as motivated by a tight deadline.

Cons:

Lower Initial Cash Flow-Acquiring additional properties may reduce your immediate cash flow, especially if properties in your target market are not as cash flow positive as your current property.

Risk of Overpaying-In a competitive market, there's a risk of overpaying for properties just to meet the exchange deadline, which could impact your overall returns.

Either one is a valid option, but overall it depends what your financial goals and restrictions are. Hope this helped! Please feel free to reach out directly if you would like to discuss further or if you have any other questions!

Hello, Brandon Williamson, I have plenty of experience when it comes to loan exchange. I assume you are referring to refinance, loan modification, assumption of mortgage, mortgage assignments, etc. If so, I am happy to answer any questions you have. I am a loan officer licensed all over the country, feel free to message me with questions.

Have a great day! 

Hello, Austin Nicol, understanding the difference between cash flow markets and appreciation markets is crucial for real estate investors, as each type of market aligns with different investment strategies and goals. Here’s a detailed breakdown of these two types of markets and the factors that contribute to each:

Cash Flow Market, a cash flow market is one where rental income exceeds the expenses of owning the property (mortgage, taxes, insurance, maintenance, and property management), resulting in positive monthly cash flow for the investor.

Key Characteristics:

High Rental Yields: Properties typically have high rental yields compared to their purchase prices.
Stable or Slow Appreciation: Property values increase slowly over time, if at all.
Lower Property Prices: Generally, property prices are lower, making it easier to achieve positive cash flow.
Higher Rental Demand: Strong demand for rentals due to economic factors, demographics, or local employment conditions.

Factors Contributing to Cash Flow Markets:

Economic Stability: Stable job markets and steady local economies that support rental demand.
Rental Market: High percentage of renters compared to homeowners.
Affordability: Affordable property prices relative to rental income.
Local Policies: Landlord-friendly laws and regulations.

Appreciation Market, an appreciation market is one where property values increase significantly over time, offering substantial capital gains upon sale, but rental yields may be lower, resulting in lower monthly cash flow.

Key Characteristics:

High Property Value Growth: Significant annual increases in property values.
Lower Rental Yields: Rental income may not cover the monthly expenses, leading to lower or even negative cash flow.
Higher Property Prices: Generally higher property prices, which can make it harder to achieve positive cash flow.
Strong Economic Growth: Rapid economic growth, population influx, and development.

Factors Contributing to Appreciation Markets:

Economic Boom: Strong local economy with job growth and high-paying industries.
Population Growth: Influx of people moving to the area, increasing demand for housing.
Infrastructure Development: Significant investments in infrastructure, amenities, and services.
Desirability: High quality of life, good schools, and attractive neighborhoods.

I hope this information finds you well. 

Hi Allan,

Yes, it is possible to list your property for rent on platforms like Zillow, Apartments.com, and Avail.Co without displaying the exact address to the public. 

When you create a listing on these platforms, you will have the option to provide details about your property such as the number of bedrooms, bathrooms, amenities, and rental price without disclosing the exact address. Instead of the precise address, you can describe the general location or neighborhood where the property is located. Interested renters can contact you through the platform for more details. You can then provide the exact address and schedule viewings based on mutual agreement.

Hope this helps! Please feel free to DM me if you need further assistance or if you would just like to discuss!

Hello, Manuel Llanas, your property has several positive attributes, such as a great location and a low mortgage rate. However, you also face some challenges, including renovation needs and an unusual humming sound. Here's what I would do step-by-step.

1. Get a clear estimate of the renovation costs. This will help you understand the financial investment required to make your property rental-ready.

2. The humming sound you mentioned could be a concern for potential tenants. Consider hiring a professional to check it out to find possible causes. 

3. Research comparable rental properties in your area to determine the potential rental income. Websites like Zillow, Rent.com, or local real estate agents can provide insights.

4. Calculate your NOI (Net Operating Income) by subtracting your operating expenses (including mortgage, insurance, HOA, maintenance, and property management fees) from your rental income.

5. Perform a detailed financial analysis to determine the viability of renting out the property. Consider the following: 

- renovation cost, monthly expenses, potential rental income, cash flow, return on investment

6. Use this information to form a pros and cons list, and see if it makes sense for your lifestyle. I hope this helps. 

Hi Shelley,

Some potential courses of action would be:

Review Lease Agreement: Check your lease agreement with the tenants. Typically, it should outline what can and cannot be placed on outdoor areas like porches. 

Discuss with Tenants: Approach your tenants in a friendly manner and express your concerns about the punching bag. Ask them about it and whether it's free-standing or attached to the porch. Explain your worries about potential damage to the new porch and noise disturbance, especially if it's causing vibrations that could affect the structure or annoy neighbors.

Consider Amendments: If your lease agreement doesn't currently address items like punching bags specifically, consider adding an amendment that outlines rules for using outdoor spaces to prevent future misunderstandings.

Document Agreements: Whatever agreement you come to with your tenants, document it in writing to ensure clarity and as a reference in case issues arise later.

If you need any further assistance or would like to discuss please feel free to DM me!

Hi, Igor Balakhnin, I think I can help with your question. It depends on specific conditions.

The IRS allows for a capital gains tax exclusion on the sale of your primary residence under certain conditions:
- Single taxpayers can exclude up to $250,000 of capital gains.
- Married couples filing jointly can exclude up to $500,000 of capital gains.

Conditions for Exclusion:
- Ownership and Use Test: You must have owned the property and lived in it as your primary residence for at least two out of the last five years before the sale.
- Frequency: You cannot have excluded the gain from the sale of another home in the two years before the sale of this property.

For a duplex where you occupy one unit and rent out the other, the rules are slightly different:
- Owner-Occupied Unit: The portion of the property you lived in qualifies for the exclusion, provided you meet the ownership and use test.
- Rental Unit: The portion of the property that was rented out does not qualify for the full exclusion but can benefit from partial exclusion based on the proportion of time you lived in the property.

I personally have set my rentals up as LLC's and gotten an EIN number in order to set up bank accounts in which all the rents get deposited and all the expenses get taken out of. This will not only protect your personal assets from any potential renter who is looking to sue, but it also will vastly help the underwriters track income when looking to get approved for future loans. This will also help you be organized when completing taxes and writing off any potential expenses like furniture, utilities, repairs etc. that come with the rental business. Please note that I am not a CPA or an attorney, so please seek professional advice for any legal or tax questions as I know just enough to be dangerous! If you want any good contacts for those realms as well, let me know!