All Forum Posts by: Ty Coutts

Hi Trent,

It's great that you're thinking ahead! A 100-year-old home with structural concerns could mean costly repairs, so get a thorough inspection, especially for foundation and floor issues. Renovation costs can spiral, so overestimate your budget and factor in contingencies. Since the ADU needs a full gut, ensure zoning allows its use as a rental. Also, confirm market rents support your investment. If numbers work and risks are manageable, this could be a solid house hack!

Feel free to Dm or email me if you have anymore questions.

Hi Julia,

Rehabbing fire-damaged properties can be a profitable venture, but it requires careful planning and additional considerations. As a loan officer, I recommend first ensuring you have a thorough assessment from a contractor who specializes in fire damage. It's crucial to understand the extent of structural and electrical damage, as well as any potential hazards like smoke or mold. When financing these projects, keep in mind that some lenders may require a larger down payment or charge higher interest rates due to the increased risk. It's also helpful to look into insurance coverage for fire-damaged properties, as some insurers might be more selective about coverage. Make sure your budget accounts for potential unexpected repairs and delays, as these types of properties can sometimes reveal hidden damage during the renovation process. If you have any more questions, feel free to DM me.

Hi Evan,

Yes, in most short sales, the lender typically pays the buyer’s real estate agent’s commission, but this varies by lender and specific circumstances. The total commission is usually negotiated as part of the short sale approval process and deducted from the proceeds. Some lenders may limit commissions or require specific terms. It’s essential to confirm this early in the transaction. Connect with lenders experienced in short sales to understand their specific policies and requirements!

I'm a licensed lender, if you'd like to connect, shoot me a DM or email!

Hey Stepan,

In today’s market, finding solid flip deals requires being more strategic with property selection. I recommend targeting emerging neighborhoods with strong long-term growth potential, where property prices are still affordable but demand is on the rise. Keeping rehab costs in check means focusing on high-impact upgrades like kitchens, bathrooms, and curb appeal, while avoiding over-improving the property. Stay on top of material price trends, and have contingency plans for unexpected costs. Buyer preferences are shifting towards energy-efficient homes, smart home features, and open-concept designs, so incorporating these elements can increase appeal. Working with contractors requires clear communication and detailed project timelines to ensure that deadlines are met and avoid overruns. It’s crucial to build a solid relationship with your contractors, ensuring they understand your expectations and budget constraints. If you have any more questions or need help with the financing of these projects feel free to DM me.

Leveraging your equity through a HELOC or cash-out refinance can be a smart move, but it depends on your risk tolerance and goals. A HELOC offers flexibility and interest-only payments but can be risky with rate fluctuations. A cash-out refinance provides stable financing but resets your mortgage term. Since hard money eats into profits, consider private lenders, local banks, or partnerships for lower-cost funding. You might also explore BRRRR to build long-term wealth while recycling capital. If flipping, ensure margins are strong enough to absorb financing costs. Have you considered diversifying into rentals?

You're in a great position with strong equity and minimal debt, but to improve cash flow, consider leveraging strategically. A cash-out refinance on one rental could provide liquidity while keeping rates reasonable. Alternatively, using your HELOC to acquire another cash-flowing property, then refinancing that loan later, can be a smart move. If debt concerns you, look at DSCR loans, which qualify based on rental income instead of personal finances. Also, consider a portfolio loan to consolidate and free up capital. The key is ensuring any new debt enhances cash flow and aligns with your risk tolerance.

If you plan to keep your current home as a rental, a home equity loan or HELOC could help fund your new home's remodel while keeping your low mortgage rate. However, transferring your current home into an LLC may affect financing, as most traditional lenders require it to remain in your personal name for a home equity loan. Instead, consider a DSCR loan (based on rental income) or refinancing into an investment loan post-purchase. If DTI is a concern, rental income from the current home may offset it.

I work for Aslan who is licensed in 32 states, shoot me a DM or email if you'd like to talk further.

Given your low interest rates, refinancing isn't ideal, and traditional HELOCs may not work since these are investment properties. Look into DSCR loans, which use rental income for qualification, allowing you to scale without relying on personal income. Portfolio loans from local lenders may also offer flexibility. Seller financing or subject-to deals can help acquire properties with little upfront capital. Consider partnerships or private money lending to boost purchasing power. With $15-20K liquid, focus on lower-cost Midwest markets where down payments stretch further.

You're in a strong position with capital and a solid plan, but to scale next year without over-leveraging, consider the BRRRR strategy to recycle your capital. A HELOC or cash-out refinance on your current rental could unlock additional funds if interest rates improve. Joint ventures or private lending can help you acquire more properties while reducing personal risk. Exploring seller financing or subject-to deals can minimize upfront capital needs. Lastly, focus on high-yield markets or value-add properties to maximize cash flow and long-term growth. What market are you investing in?

You're welcome! Having your son involved in the loan, title, and insurance policy does have both benefits and drawbacks. One of the benefits is that being on the loan can help build his credit, which will be valuable for his future financial goals. It also means shared responsibility, making him a true partner in the venture and encouraging greater engagement. Additionally, as a co-owner, he would directly benefit from any appreciation, tax deductions, and profits from the property.

On the downside, being on the loan could impact his credit score, especially if there are any missed payments or financial issues. He would also be exposed to liabilities related to the property, such as lawsuits or property damage claims, which could affect his personal assets. Additionally, if he’s legally and financially tied to the property, it might limit his flexibility if he wants to make major life changes, like moving or starting his own investment ventures.

Ultimately, the decision depends on how involved you want him to be in the financial side of the property and how much risk he’s willing to take.