Finding a CPA for REI

[Eran Withana]

I listened to Amanda Han in BP podcast and also read "Tax Free Wealth" by Tom Wheelwright. I just signed contracts for my first two rental properties in OK and LA. I also have W-2 income. 

I was trying to find a CPA and still struggling to find a good one that fit my needs. There are places famous for REI that charge over $5-10k just for planning and I'm not sure whether I'm there yet. The other CPAs that I talked to, I don't know whether they know enough about REI. Hence, wondering how others find their CPAs.

I also understand that the cost also reflect what you get and at the same time don't wanna pay too much. Any suggestions on how I should find someone? Do you think I can do this myself with Turbotax?

[Caleb Heimsoth]

Originally posted by @Jake Hottenrott:

@Eran Withana - Look for value and not at the price.  If you are going to save $10K, $25K, or $100K by developing a tax plan when you first start out, a $2-5K outlay seems pretty insignificant.  You also have to look at a few different things.  Any CPA/EA/Tax Preparer can DO your taxes.  The value comes from the conversations ahead of time that minimize taxes by providing a framework strategy and an evolving pathway that changes with each conversation with your tax strategist and new deal that your investing career contemplates.

@Caleb Heimsoth - With all due respect and I do mean with all due respect, if an investor goes to the lowest priced or an inexperienced real estate investing tax it is just setting themselves up for headaches.  Many of the tax professionals on this forum are not "cheap" but can make a good fee for fixing situations where investors relied on poor advice from cheap advisors.

My conclusion is to interview a few and go with a professional that you feel comfortable with no only their fee, but also their personality, their experience, their reputation, and their willingness to not only advise you as you start your journey but provide education and planning for what type of investor you want to be.  Best of luck!

You’re an accountant, so it’s not shocking that you think what I said isnt ideal advice.  You’d naturally want to charge more.  Keep in mind paying less doesn’t mean the advice is bad.  Paying more doesn’t mean the advice is good.  It may be what’s most common but it’s not always the case.  Why would an investor who’s making say 5-10k a year in cash flow want to pay thousands of dollars to file their taxes?  

 I am shocked as to what some people pay to file their taxes.  If it costs too much, that’s fine I’d just do it myself.