Do I need a CPA as a rookie investor?

Question

I bought my first small multifamily BRRRR deal in January of 2019 and started collecting rent for it in October of 2019. I am assuming now that I own a property, it would be wise for me to get a CPA because I have heard plenty of times that a good CPA will save you more than what you pay them. Where should I look to find a good real estate savvy CPA and what questions should I ask to make sure they are a good choice for me? I live in San Antonio by the way. Thanks for taking the time to read and reply!

Account Closed · Answer

Brian, the best source of CPA and other members of your team (like contractors, lenders, real estate agents, etc) has always been REFERRALS. So attend your local REIA and ask other investors to refer you the right CPA.

Stone Saathoff · Answer

http://guerrerocpa.com/

Probably the best and most well known CPA among rental owners in San Antonio.

Gita Faust · Answer

@Stephen Bianes

It starts with keeping track of all your money in and out including expenses incurred in training, research, networking etc.

A question such as do I need a bookkeeper, accountant, tax advisor, real estate strategist, CPA, Tax Preparer -- one has to gather all statements (bank, credit card, loan...), receipts, closing doc, and get them organized including any money paid in cash or via personal accounts.

If you are the DIY kind of person, need to either use a software or paper/pencil to track details such as repairs vs improvements that increase the value of the property, the word is "detail" to take advantage of accelerated depreciation. When recording it in one place, you will have the reports at your fingertips. If not just outsource your bookkeeping. When you go to see a CPA they will be able to advise you personally and your real estate business.

Now that you have it all ready, you take your business to the next level.

Basit Siddiqi · Answer

@Brian Thomas

Are you open to working with an accountant remotely?

I would prioritize finding an accountant who specializes in real estate taxation over one that is local.
There are 20+ accountants on this message board who specialize in real estate taxation. Feel free to reach out to a couple and use the one you connect with the most.

Michael King · Answer

@Brian Thomas I know a realtor who also happens to be a CPA, which in my mind is a pretty deadly combo. She has a knack for finding good properties and understands the tax implications. DM if you want her contact information.

Avery Carl · Answer

Yes, you definitely need a CPA! As you grow you will probably go through several of them, and that's ok! But you want to make sure your house is in order from the get go, it will be a lot more expensive to undo mistakes later than to do things right the first time!

Michael King · Answer

@Stephen Bianes Sure, please DM me and I'll pass over her email. Thanks!

Stephen Bianes · Answer

@Gita Faust thank you for taking the time to explain this. I’ll apply this to my new RE company.

Stephen Bianes · Answer

@Gita Faust got confused with this. Do you mind expounding on it?

Do I need a CPA as a rookie investor?

Do I need a CPA as a rookie investor?

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