All Forum Posts by: Ty Coutts

Hey Seth,

Great to have you here and it is fantastic that you're getting into RE investing. It is the best way to build generational wealth in my opinion. Feel free to reach out to me directly if you have any questions, want to discuss anything, or are looking for financing for your investments!

Hey Adisa,

I am a loan officer so I could perhaps help you secure financing. I also have some great contacts that may work for you if you'd like a referral. Feel free to reach out to me directly if this interests you. 

Hey David,

Selling a rental property in Hawaii while residing in Japan can indeed attract Japanese capital gains tax, as Japan taxes global income of its residents. Unfortunately, Japan does not offer the same tax deferral benefits for 1031 exchanges as the U.S. does. Moreover, Japan provides tax deductions for personal residences but not for investment properties. Moving the property into a revocable trust typically would not help in reducing or avoiding Japanese capital gains tax, as the tax liability still falls on the individual. One potential strategy to consider is waiting to sell the property until after you leave Japan, as this might exempt you from Japanese capital gains tax if you are no longer considered a resident for tax purposes. Hope this helps. Feel free to reach out to me directly if you have any other questions.

In California, the law limiting landlords to a maximum security deposit of one month's rent for unfurnished properties and two months' rent for furnished properties went into effect on July 1, 2024. This law applies regardless of whether the tenant volunteers to pay a higher deposit due to credit issues or any other reason. The intention behind this legislation is to protect tenants from excessive financial burdens. Therefore, even if an applicant acknowledges her credit history and offers a larger deposit, landlords must adhere to the legal limits set by the state.

Hello Nick, 

State Farm dropping your apartment insurance policy for the two 5-unit apartment buildings you manage in California is challenging, but there are several alternatives to consider. You can start by reaching out to independent insurance agents who work with multiple carriers and can provide quotes from various companies still willing to insure rental properties in high-risk areas. Consider specialized insurers like Nationwide, Farmers, or Liberty Mutual, which may offer policies tailored to multifamily rental properties. Additionally, exploring surplus line carriers that handle high-risk properties might be beneficial, though they often come with higher premiums. It’s also prudent to review and update your properties' safety measures, such as installing fire alarms and security systems, as these can sometimes help reduce insurance costs. I hope this helps. 

Hi Michele,

Maxing out your Roth IRA before investing in real estate can be a wise decision, as it allows you to take advantage of the tax-free growth and withdrawals in retirement, providing a solid foundation for your future. However, as a real estate agent with expertise in the Tampa market, you have unique insights and opportunities that could potentially yield higher returns through real estate investments. A balanced approach might be best: consider contributing to your Roth IRA to ensure you're benefiting from its tax advantages, while also starting small with real estate investments that require minimal capital, such as house hacking or partnering with other investors. This strategy allows you to diversify your portfolio, leveraging both the stability of a Roth IRA and the growth potential of real estate, while gradually increasing your investment capacity over time. I hope this helps, I am here to answer any other questions you may have.

Hey Tony,

With a number of benefits, leasing to Section 8 tenants might be a smart move for investors in rental properties. The guaranteed rent payments are one of the most alluring features because the housing authority pays all or most of the money immediately, minimizing the possibility of payments being missing. Furthermore, Section 8 housing is frequently in great demand, which may result in shorter availability times. Seeking stable, long-term housing can lead to longer tenancies and lower turnover costs, which is what many Section 8 renters are after.

There are, however, disadvantages to take into account. The housing authority's specific inspection requirements must be completed by the property, which occasionally calls for more renovations or repairs. The length of the inspection procedure may also cause a delay in the tenancy's commencement. In addition, the rent is capped at the tenant's income and the local market rates, so it may be less than you would receive from a tenant who is not a Section 8 tenant. A number of landlords have also expressed difficulties with the program's bureaucracy and administrative procedures.

As with any other application, it's imperative to thoroughly screen Section 8 tenants in order to reduce dangers. Verify their references, income, and rental history to be sure they will be dependable tenants. A smoother process can also be achieved by cultivating a positive connection with the local housing authority. All things considered, leasing to Section 8 can yield consistent and steady income, but it also necessitates cautious thought and oversight.

Please feel free to reach out to me directly if you want to move forward with this or if you have any other questions. Hope this helps!

@Steven Garza of course! Here is my Calendly link. Fill it out whenever you have the chance so we can schedule a call! https://bixel1.net/v1/t/c/91b5e4b9-4b00-a5bf-389a-27a02910a2...

Hello Cheryl, purchasing a vacation home in downtown Seattle, particularly in the Belltown area, can be a compelling investment due to its vibrant urban environment, proximity to major attractions, and scenic waterfront views. However, it is crucial to understand the current market conditions and potential concerns. Seattle's real estate market is characterized by high property prices, driven by strong demand and limited housing supply. In contrast, rental yields are relatively lower, which can make it challenging to cover mortgage payments and other expenses solely through rental income. Additionally, the rental market in Seattle can be competitive, with seasonal fluctuations affecting short-term rental demand. It is important to consider local regulations, as Seattle has specific rules and restrictions for short-term rentals, which might impact your ability to rent out the property when not in use. Thoroughly researching the market, including average rental rates, occupancy rates, and potential return on investment, is essential. Consulting with a local real estate agent who specializes in vacation homes can provide valuable insights and help navigate the intricacies of the Seattle market.

Hey John, as a cash investor with a few million to build a portfolio, the current issues in the Florida real estate market could present an opportune time to secure good deals. While mortgage rates are a non-issue for you, the challenges of rising insurance costs and market fluctuations might deter other buyers, potentially lowering competition and prices. The market volatility and insurance concerns, while significant, are unlikely to render the entire state uninhabitable, suggesting that these issues will eventually stabilize. This environment could allow you to leverage your cash position to negotiate better deals and acquire properties at a discount, positioning yourself advantageously for future appreciation when the market balances out. Good Luck!