All Forum Posts by: Ty Coutts

Hi KeAnna! It’s great to see your enthusiasm as you dive into real estate investing. The Birmingham market has been showing steady growth, with increasing demand for both single-family homes and multi-family properties. Neighborhoods in areas like Homewood and Hoover have been experiencing strong appreciation, and the rental market continues to be strong, especially with the growing number of young professionals and college students in the area.

As a loan officer, I’m here to help you navigate the financing process, whether you’re looking for your first investment property or expanding your portfolio. Feel free to reach out with any questions about loan options or how I can support your real estate journey! Looking forward to seeing your success!

Hi J

It’s great to see Valdosta’s real estate market continue its upward trend despite rising rates and higher inventory. With median list prices and price per square foot increasing month over month, it's a fantastic time for sellers, and the decrease in days on market highlights the strong demand in the area. However, it's clear that buyers are facing challenges, and it's hard to predict when they will regain control.

As for the dip in rent prices, your theory on timing makes sense, especially with Valdosta's seasonal dynamics driven by college students and military families. It’s a good reminder for landlords to stay adaptable and ready to respond to changes in rental demand.

As an experienced loan officer in Georgia, I’m happy to help both buyers and sellers navigate this competitive market. Whether you’re looking to secure financing for a new property or refinance an existing one, I can offer the guidance and support you need to make the most of these opportunities. Let’s talk about your goals and how I can help you achieve them in this ever-evolving market!

Hey Audrey

Here's a list of things you should look for in your investment properties...

Start by assessing the property’s curb appeal and exterior condition, checking the roof for damage and foundation for cracks or moisture. Ensure there’s adequate parking and that landscaping is well-maintained. Inside, examine the structure for water damage or cracks, test the plumbing for leaks and good water pressure, and check electrical systems and outlets. Make sure HVAC systems are working properly and that windows are insulated and free from drafts. Inspect appliances for age and condition,and look over the flooring for any damage.

For tenant considerations, evaluate the unit layout for functionality and storage, and check for safety features like smoke detectors and secure locks. Listen for any noise issues and research the rental demand in the neighborhood. Outside systems like plumbing, sewage, and the water heater should be in good condition, and make sure there are no signs of pests.

Additionally, look into property taxes, insurance costs, and zoning laws that could affect future development. Finally, assess the neighborhood for safety, amenities, and potential for growth. This checklist will help you assess the property’s investment potential quickly and efficiently.

If you have any more questions, feel free to DM me.

Hi Hayley

Detroit’s resurgence offers a unique opportunity for real estate investors, with affordable property prices and strong potential for appreciation. Growing demand for rentals in neighborhoods like Midtown and Corktown provides consistent cash flow, and government incentives such as Opportunity Zones further enhance the investment climate.

To add my perspective, it's important to conduct thorough market research and assess trends carefully. Consider exploring financing options like FHA loans and refinancing as the city grows. Properties in high-demand zones may also lead to better financing terms, and staying aligned with Detroit's infrastructure improvements can help ensure your investment's long-term success.

If you need any help on the financing to any of your future projects, feel free to DM me!

Hey Donald

You're in a strong position with your properties, but as you plan to move, building a reliable network is key. For remote management, start by using property management software to streamline tenant communication and maintenance requests. It’ll help you stay organized even from afar. Consider finding a trustworthy handyman through referrals from your network or local property groups or use platforms like Thumbtack for vetted options. Testing out smaller jobs with potential handymen can also ensure quality before committing to larger tasks.

Regarding financing, holding onto the properties seems wise, given the strong cash flow and equity. However, if you feel stretched managing two locations, consider long-term property management in Chicago. Alternatively, if you need liquidity for your San Diego move, explore refinancing options on your current properties to tap into some of that equity. If you need any help with the financing feel free to DM me and we can go through it even more.

Hi Nancy,

If you need a start or are curious on any sort of loans, shoot me a DM or email!

Hi Varun,

When evaluating a builder/developer, focus on their experience, track record, financial stability, and references. Ensure they've successfully completed similar projects on time and within budget. Key risks in the BRRR 2.0 strategy include construction delays, cost overruns, market fluctuations, and difficulty refinancing if the property doesn't appraise as expected. In your contract, include clear timelines, quality guarantees, and protections for unforeseen costs or issues. Also, have contingencies for shifting market conditions or construction delays. These deals can be profitable in growing markets with strong cash flow and equity growth, but success depends on the builder's execution, local market conditions, and your ability to refinance effectively. If you have any more questions or think you'll need help securing funding for any future projects, feel free to DM me.

Hi Allen,

your numbers look solid, but there are a few areas to refine. The cash flow of $304/month is reasonable, but make sure to include a buffer for unexpected maintenance or repairs, even with a full gut rehab. Your 19.8% CoC return is strong for a first-time investor, but be cautious about not overestimating the cash flow. The 6% vacancy rate is a good estimate, but local market fluctuations could affect rent.

The HML terms (11.95% with 3 points) are high, so ensure a clear timeline for refinancing to minimize interest costs. Make sure your lender supports your long-term plans, as refinancing early can be tricky with DSCR loans. Lastly, while your exit strategy looks good, keep in mind that refinancing costs or delays may impact your timeline, so have contingency plans in place. Overall, this seems like a strong deal, but make sure to factor in potential surprises or changes in market conditions.

Hi Michael

For a seller-financed deal, especially for a multifamily property like a six-unit or larger, a typical down payment could range from 10% to 20%, depending on the terms you negotiate with the seller. However, it’s important to ensure the seller is comfortable with the terms and that the property cash flow can support the agreed-upon monthly payments.

Seller financing can be a good strategy to grow your portfolio with less initial capital, especially if you're able to increase the property's value through improvements (forcing appreciation). The key is ensuring the property can generate enough income to cover the payments and any renovations you plan.

As for pulling out equity later, this depends on the agreement terms. Typically, with seller financing, you might not have the ability to refinance right away, but you can structure the deal with a balloon payment or other terms that allow for refinancing after a certain period. Work with an attorney to ensure that your interests are protected, and that the agreement aligns with your long-term goals.

Hi Chris

Managing out-of-state investments can be a great way to diversify, but it comes with unique challenges like relying on property managers and handling long-distance communication. Many investors prefer to work with experienced local property managers to oversee day-to-day operations and ensure the property is well-maintained.

For apartments, they can be solid investments due to economies of scale, but it's important to carefully assess the location, rental demand, and potential for appreciation. To determine if an apartment building is a good deal, look at the property's cash flow, cap rate, and potential for rent increases. Perform due diligence by reviewing the financials, market trends, and property condition. It’s also worth getting pre-approved for financing to ensure you can handle the property’s price and upkeep. If you need any help on that end, Aslan is licensed in over 30 states, and we'd be willing to help on whatever venture you wanted to get into. Feel free to contact me with any questions.