All Forum Posts by: Ty Coutts

When buying a home for personal use, the best months to secure a property at a lower cost are generally from late fall to winter, specifically November through February. During this period, there is typically less competition from other buyers, as many people prefer to move during the warmer months or avoid house hunting during the holiday season. As a result, sellers who list their properties during these months may be more motivated to negotiate on price, offering better deals for buyers. Although market fluctuations and regional differences can impact these trends, targeting the late fall and winter months usually provides a greater chance of purchasing a home at a lower cost.

Hey Ellen,

Congratulations on your new property in Providence! Firstly, transparency is key. It's generally advisable to inform tenants about rental increases or changes to lease terms as soon as practical. Since you're moving in soon, having face-to-face conversations can establish a personal connection and show your commitment to fair and clear communication. 

For tenants with leases expiring in April 2025, consider discussing the rental increase sooner rather than later. Providing them with ample notice allows them time to plan and adjust financially. You can outline the reasons for the adjustment, such as market rates or property improvements, and emphasize your willingness to work with them during the transition.

Regarding the tenant you plan to ask to vacate, approaching this conversation tactfully is crucial. If you anticipate challenges, it might be strategic to wait until closer to the 90-day notice period required by law. This approach minimizes potential friction while still providing sufficient time for them to make arrangements.

Using certified mail for official notices ensures legal compliance and provides a paper trail for documentation purposes. Hope this helps! Feel free to reach out with any other questions!

Here's a breakdown based on your examples:

Carpet, Vinyl Flooring, New Toilet, New Vanity, New Tub: These items are typically considered assets because they are permanent improvements to the property that provide lasting benefits.

Plumber Labor for remodel: Labor costs for installation or repairs are generally categorized separately from materials. They are often classified as operating expenses or maintenance expenses rather than capital improvements (assets).

Washer/Dryer/Stove/Refrigerator: These are assets as they are considered durable goods that will benefit the property over an extended period.

New Baseboards/Trim, Doors: These are generally considered assets because they enhance the property's value and are not typically replaced frequently.

Furnace/AC: These are significant components of the property and are categorized as assets due to their long-term benefit.

Paint, Light Fixtures: These can be a bit nuanced. Generally, maintenance supplies like paint are categorized as supplies, while light fixtures can sometimes be categorized as assets if they are permanently installed.

Fencing, Lumber for deck remodel, Roof replacement: These are typically considered assets because they are substantial improvements to the property that enhance its value and longevity.

In terms of tax implications, categorizing expenses correctly can impact how they are treated for depreciation or immediate expensing under tax laws. Assets are typically depreciated over time, while supplies and maintenance expenses are deductible in the year they are incurred. Depreciation allows you to spread out the expense of assets over several years, reducing taxable income each year.

If you need further clarification, financing for your projects, or just have more questions please feel free to reach out to me directly.

Hey Michael,

When assessing the square footage of a property, it's crucial to have accurate information to make informed choices. County records and software listings typically provide the total square footage based on documented measurements, which in this case is 1,795 sq ft.

The discrepancy arises because the seller claims the downstairs, used as a business space, is also 1,700 sq ft, making the entire property 3,500 sq ft. To clarify this, you may need to conduct a thorough physical inspection or hire a professional appraiser or contractor to measure both levels separately. This will provide a definitive answer regarding the total square footage and ensure you base your decision on accurate data.

It's important to verify all aspects of the property's description and measurements to avoid any surprises or complications later on. Feel free to reach out if you have any other questions or if you would like to discuss!

Feel free to reach out if you have any other questions!

When searching for house plan websites geared toward investors or spec homes, it can indeed be challenging to find platforms specifically tailored to these needs. However, there are reputable websites that offer a wide range of house plans suitable for various purposes, including spec homes. Websites like Architectural Designs, Houseplans.com, and The House Designers are popular choices among real estate investors and builders. These sites typically provide extensive catalogs of floor plans designed by professional architects and designers, offering customization options to suit different budgets and project requirements. It's essential to review the plans carefully, ensuring they align with your investment goals and local building codes before making a purchase.

From my experience, BlueBeam provides the most seamless and fast collaboration between people on the project (architects, builders, owners, investors, etc.) It does take some training to become proficient but seems to be the most widely accepted.

Hey Ahmed,

Many hosts streamline this process by starting with online resources like municipal websites, where cities often publish their short-term rental ordinances. Some areas have specific departments or webpages dedicated to housing or zoning regulations that can provide detailed information.

Another effective approach is to connect with local real estate agents or property managers who specialize in short-term rentals. They often have up-to-date knowledge of local regulations and can provide insights based on their experience. Additionally, joining local real estate investor groups or forums can be valuable, as members often share updates on regulatory changes and best practices.

To automate and make the process more efficient, consider using tools like AirDNA or Mashvisor, which provide data on short-term rental regulations and market trends across different locations. 

Hope this helps. Feel free to reach out if you need anything else, or if you would like to talk financing!

Hey Nicholas, 

It sounds like you're facing a challenging situation with tapping into the equity of your small multi-family properties due to lender restrictions on investment property holdings. While many traditional banks and credit unions may impose such limitations, you might have better luck with smaller, regional banks or credit unions that have more flexible lending policies. Some lenders may offer HELOCs on investment properties without requiring a switch to commercial terms. Additionally, online lenders or specialty financing companies might provide the solutions you're looking for. It's advisable to network with other real estate investors in Massachusetts or consult a mortgage broker who has experience working with investors and can guide you towards lenders that meet your specific needs. Be prepared to present your case with solid financials and a good credit history to increase your chances of finding a suitable HELOC provider.

I am a licensed loan officer around the country, but unfortunately not in the Northeast because of certain restrictions/costs. I would love to chat and discuss your situation further as I believe I could help find a creative financing solution that best fits you. And would love to discuss your future plans and see if I may provide some more concrete assistance down the road. I hope this helps, and please do not hesitate to schedule a time to chat using this link: https://calendly.com/tycoutts

Hey Boady, I love your determination, hunger, and work ethic! Those really are the keys to achieving your goals. I am a loan officer and am licensed/work with clients in Arkansas. Please feel free to reach out and message me directly on BiggerPockets with any questions you may have about the industry or how a loan officer mixes into the equation. I hope to hear from you and best of luck!

Welcome to BiggerPockets! It sounds like you've built an impressive portfolio over the past 15 years. Your concerns about liability protection are valid, especially as your portfolio grows and the legal landscape evolves. While owning properties in an LLC is a solid foundation for liability protection, it's wise to continually reassess and enhance your strategy. Many seasoned investors bolster their liability protection by using a layered approach. First, ensuring that each property or group of properties is held in a separate LLC can limit exposure, confining potential liability to the specific entity involved. Additionally, augmenting your general liability insurance with a commercial umbrella policy can offer a higher level of protection, potentially covering gaps that a personal umbrella policy might not. Consulting with a knowledgeable insurance professional can help tailor a policy that addresses your specific needs and risks. Furthermore, maintaining rigorous property management practices, keeping thorough records, and implementing robust tenant screening procedures can also mitigate risks. Networking with other experienced investors and legal professionals within the BiggerPockets community can provide further insights and strategies to safeguard your investments.