All Forum Posts by: Ty Coutts

What’s in the agenda? Always love to connect with others in the area! 

I help out mortgage brokerage find ethical ways to implement AI daily to best help serve others. We should definitely sit down and chat about this since I could go on for hours about AI in the RE space! 

I’d love to refer you to my go to CPA Briana Beers. Message me and I’ll make the connection. Her husband is also one of my closest friends and top referral partner as a RE agent himself. 

Congrats on all the massive progress so quickly! Would love to chat someday about your end game goals in RE and any way in which I can help you achieve them as well!

I haven’t personally had experience with ground up or selling lots with plans as you mentioned, but I have helped finance many of GUC investment properties for clients. I’m sure some of them may even be willing to sit and chat and let you pick their brains on a project of this size. Reach out to me and I’d love to make the connection for you! 

Either way keep me updated on this as it seems like a great project in a gorgeous area! Best of luck! 

Great question, Stefen — and congrats on already owning a rental and looking to level up with an STR in a competitive market like Nashville.

You’re doing a lot right already — running the numbers, checking for seller financing, and evaluating cash flow and property management in place. That’s all smart investor due diligence.

Here are a few financing strategies you might consider to bridge that 10%–20% gap:

Look into a DSCR Loan with 10% Down Options
Most DSCR (Debt-Service Coverage Ratio) loans require 20–25% down, but some non-QM lenders offer creative structures — like cross-collateralization or blended equity across properties — that might help reduce your cash needed at closing. It depends heavily on the lender, the property cash flow, and your credit profile.

Some DSCR lenders allow using equity in another property (like your rental) as part of the collateral stack, which could free up cash or reduce your down payment.

Bring in a Capital Partner or Equity Split
You mentioned private lending hasn't worked out, but have you tried structuring a JV (joint venture) or equity partnership? Someone puts in the down payment; you run the deal and operations.

HELOC or Cash-Out Refi on Existing Property
Since you've owned your rental for 3+ years, there may be untapped equity there. Could a cash-out refinance or a HELOC help you extract enough to bridge that down payment?

Assume LLC Purchase with Creative Structuring
Because the property is held in an LLC, you might have more flexibility with how the transaction is structured. Sometimes buyers will do a membership interest transfer rather than a traditional title transfer — and some private lenders or hard money lenders are more flexible with that setup.

Not all lenders like lending to LLCs on entity purchases — but some do if the property cash flows well. It’s a niche, but it’s out there.

If you’d like, I’m happy to dig deeper into which strategies might fit your credit, income, and goals — just shoot me a message anytime. Keep pushing forward — you’re asking all the right questions.

Great question, Tony — and congrats on having that much equity built up in your investment property. That’s a strong position to be in!

A Home Equity Loan (HEL) can be a solid option, especially if you want to:

Avoid resetting your first mortgage at today’s higher rates

Access a fixed lump sum with predictable payments

Keep your original loan terms intact

But here are a few strategic alternatives to consider, depending on your goals:

Home Equity line of credit (HELOC)

Why Consider It: More flexible than a HEL — you only pay interest on what you use.

Great for: Investors wanting to fund renovations, down payments, or flip/resell timelines.

Heads-up: Can be variable rate and might be harder to get on investment properties (some banks limit HELOCs to primary residences, though portfolio lenders or credit unions may offer options).

Why Consider It: If you're buying another property, some lenders will let you pledge the equity in your current property instead of bringing cash to close.

Great for: Preserving liquidity and scaling your portfolio without touching your current mortgage or taking on a new monthly payment.

DSCR Cash-Out (If you reconsider Refi later)

Why Consider It: If cash flow is strong, DSCR lenders will base the loan on rental income, not your personal income.

Great for: Investors wanting to tap equity and don’t mind swapping their first loan (say, if rates come down later).

A Strategic Tip:

Some investors use a combo of a HELOC + BRRRR — pulling equity now, buying a value-add deal, then refinancing once the project is stabilized. You can reuse the HELOC funds again and again.

If you’re trying to balance cash flow, future scaling, and rate sensitivity, the best move may depend on your short-term vs. long-term goals.

Happy to dig deeper based on how you plan to use the funds or what your next move is. Just let me know!

Hi Neha — welcome to BiggerPockets, and congratulations on establishing Mulkar LLC! Taking that step shows you’re serious about building a long-term, sustainable investment strategy, and it’s great to see you already focused on financial security through real estate.

As you evaluate financing options for your first investment property, there are a few key considerations:

LLC vs. personal name: Depending on your goals and how you're structured financially, there are trade-offs between purchasing in your personal name (access to better financing terms) versus through your LLC (asset protection and flexibility with certain loan types).

Loan strategy: Many first-time investors start with a conventional loan, which offers strong terms if your personal credit and income qualify. If you're looking to buy directly through Mulkar LLC or need flexibility around income documentation, a DSCR loan could also be worth considering.

Next steps: Getting pre-approved early will help clarify your buying power and make you more competitive when you start making offers.

Wishing you the best as you move toward your first acquisition!

Welcome to BiggerPockets, George — glad to have you here!

As a residential Realtor, you’ve already got a strong foundation for success in investing. Your access to deals, deep market insight, and negotiation experience can give you a major edge as you pivot into rentals and flips. Now it’s about aligning the right financing and strategy to turn that expertise into long-term wealth.

A few thoughts to get started:

Long-Term Rentals: A great way to build stable cash flow and equity over time. Since you're self-employed, it's key to work with a lender who understands investor income — especially if you're writing off a lot on taxes. Starting with a 2–4 unit owner-occupied property using FHA (3.5% down) or conventional (5% down) can let you live in one unit while renting the others, boosting your DTI and helping you scale faster.

Flips: As you know, margins are thinner in this higher rate environment, so investor-friendly financing like fix-and-flip lines or even HELOCs against your own home can provide flexible capital — just be sure you underwrite your deals conservatively.

Scaling Smarter: Down the line, tools like DSCR loans or portfolio loans can help you grow past the typical Fannie/Freddie 10-property cap — especially useful if your income isn't W-2.

Happy to dive deeper on any of this based on your goals or local market. Feel free to shoot me a message if you ever want to bounce ideas or walk through a scenario!

Welcome to the community, Jeffrey!

Awesome to see you diving into both STRs and multifamily rentals—great way to diversify your portfolio and learn the game from different angles early on. Spokane's got some solid investment potential, especially as you balance cash flow with long-term appreciation.

As you get rolling, a few tips from the lending side:

For STRs: Make sure you understand how lenders evaluate short-term rental income (many use projected rents or require historical income—depends on the loan type).

For multifamily (2-4 units): House hacking with FHA or conventional financing can be a killer way to live for cheap and build equity fast.

Always structure your financing with future scalability in mind (e.g., avoid using up your owner-occupied slots too early if you plan to keep growing).

Glad you're here and soaking up wisdom. Feel free to reach out if you want to strategize your financing path as you build.

Wishing you a strong start!

Great question, Serge — and kudos for thinking long-term with your co-living strategy. You're absolutely right to consider how refinancing could play out after modifying a property for higher cash flow.

Here's the Refinancing Reality for Co-Living Homes:

You nailed it — a 7-bedroom SFH often doesn't appraise the same way a typical 3-bed would.

• Appraisers use comps of similar homes in the area. If there are no nearby 7-bedroom SFHs (likely!), you’ll be limited to traditional comps, which may not reflect the value of your upgrades.

• Permitted additions help — unpermitted rooms might not be counted at all.

• The more the home looks/feels like an “investment property” or boarding house, the more pushback you might get from a conventional lender.

Even if the property cash flows like a beast, a standard cash-out refi will still lean heavily on what nearby homes have sold for — not on your income potential.

Loan Type Matters

Here’s how you can still pull equity smartly:

• Traditional Cash-Out Refinance:

  • Lower interest rates, best terms.

  • Requires the property to still “look and feel” like a typical single-family residence.

  • May not value additional bedrooms beyond 4–5, especially if they're not in line with the neighborhood.

• DSCR (Debt-Service Coverage Ratio) Loan:

  • Bases qualification on rental income, not your W-2 or tax returns.

  • Works well for co-living setups where you're renting by the room.

  • Less reliant on traditional comps, though the LTV caps may be lower.

• Portfolio or Bank Statement Loans:

  • More flexible with layout changes and unconventional income models.

  • Great if you’re building a co-living brand or operating as a business.

Strategy Tip

Start thinking now about how you’ll document the income and whether your upgrades will be permitted and conforming to zoning. You want the property to stay “financeable” — otherwise your only refi route might be niche lenders.

Let me know if you’d like to model this out — I’ve worked with a few investors who’ve done similar co-living value-add plays. The key is aligning your renovation + income goals with your future exit or refi options. Happy to walk you through both sides.