My First Deal - Seeking Landlord Advise

[Tom Edwards]

After a couple of years of research here on BP, I'm moving on my first investment property in NW Indiana. Its an occupied 2 unit in a residential neighborhood. I have a few questions on how to start my journey as a landlord:

1. 1. Insurance. Any special considerations with home owners insurance? 
2. 2. Prop Manager. Recommendations for property managers in NW Indiana? 
3. 3. What's the best way to manage my books? Any recommendations on spreadsheets/SW programs to help manage property/investment          accounting?

Thanks!

[Kyle Mccaw]

1. You will need to purchase a landlord policy. It is different from a home owner's policy becasue there are different risks. I also would get an umbrella policy. They are cheap.

2. Get local referrals. Google reviews are a good start but interview several managers. Make sure they have E&O, liability and workman's comp (if in-house maintenance) insurance. Make sure they require vendors are insured. Too many manages cut cost in these areas. Make sure they treat tenants and owner with respect. Google reviews will be helpful. Remember a great manager will have bad reviews from tenants that get turned down or evicted. Again ask some local investors for referrals.
3. Your manager will provide statements and 1099. Keep up with expenses and provide them to your accountant. Be sure your accountant does cost segregation. It will really help with reducing your taxes. Then plan to 1031 tax exchange your property in the future.