All Forum Posts by: Alecia Loveless

@Benjamin Larabee My accountant recommended I get a bookkeeper to organize my records as I am still building my portfolio.

Through a comedy of errors I have found a good one. I would be happy to recommend her. She uses QBO and is linked to my online banking and a couple of credit cards.

I’m spending around $350/month on the bookkeeper and FINALLY have useful information and data that is helping me analyze my portfolio and see what is working and what isn’t.

For reference I’ve got 8 properties and 31 units. Depending on how big your portfolio is it might be more or less expensive for you.

@Jared Goldwasser Not necessarily a question for the agents but my thoughts on something you should be looking at when you evaluate properties.

I always like to look at several years worth of property taxes. Not just the current year amount on the listing.

In several markets I follow there has been a HUGE increase in taxes year over year for the past several years.

While the taxes on the listing may seem reasonable if it turns out they’re 300% more than they were two years ago just because the community has increased its spending this is a trend that will quickly make your cash flow evaporate.

@Alex Schumer I’ve always done my own bookkeeping but after preparing my taxes for year 2022 my accountant urged me to get a bookkeeper.

Through a comedy of errors I had to file an extension on my 2023 taxes and was finally able to hire a great bookkeeper in June of 2024. She prepared my books from 2023 and I got those filed. Since then we have focused on my 2024 books and I’m all ready to file my taxes now which is months ahead of my previous timeline.

My only question is what took me so long to hire the bookkeeper? I’m averaging about $350/month with the bookkeeper and we’re working with 8 properties and 31 units and 8 sets of accounts as I have one per property.

Obviously if your portfolio is smaller you should spend less.

The accurate P&Ls made it so much easier for my accountant to prepare the 2023 taxes. He was grateful I’d hired the bookkeeper.

If you’ve got property and aren’t well-versed in an accounting software I’d recommend starting with a good accountant and quickly adding a good bookkeeper. I see various large bookkeeper options at about $100/month if you want to go that route. It’s not necessary to stay local for these services as long as you have online bank statements or a solid way to get them to the bookkeeper.

For the first time I’m able to look at accurate P&Ls each month and KNOW what my portfolio financials look like.

I’m focusing on Insta and FB. I’m primarily using local channels for towns. #townnamenh either with or without the initials of the state. In the example New Hampshire. 

@Max Briggs I use MySmartMove too. I don’t have any horror stories but every time I go to run a check the cost has gone up. Yes it’s only by $1.00 but it’s gone up over $9.00 in the past 4 years.

My last one 2 weeks ago was $47 which I pass on to the tenant. Once they sign the lease and pay the deposit I credit them back the cost of the background checks off their first month’s rent. I feel this is a little benefit that helps set me apart from other landlords in my area.

@Katie Camargo My sister has several warranties on SFHs in her portfolio. She no longer buys warranties because she has found the repairs are often shoddy and slow.

Her last deal she had a claim on the HVAC was leaking. After several weeks the warranty repairman met my sister and looked at the HVAC unit and said there was no leak. When it was clear water was running from the unit.

Fast forward another 8 weeks and the HVAC dies and the tenant moves out. Now the living room and 2 bedrooms that just had new flooring put in them 8 months ago are ruined from the leaking water from the HVAC and have to be replaced again.

The warranty isn’t covering the shot HVAC much less the ruined flooring and sub flooring.

My sister doesn’t recommend buying warranties anymore.

@David Lewis Facebook marketplace is my go to for keeping up with rent trends in the area I invest in.

In smaller markets this method is a little iffy because there’s less comparative units.

I often find myself looking at a listing and it’s pictures and through experience know that my units will likely rent for $100 more because they’re nicer.

We've only really got one agent out of maybe 50 in the marketplace that regularly lists rental units on the MLS. Her listings tend to be higher end and often have multiple bathrooms making them more expensive, usually $400-$500 more than a typical unit would go for.

As you learn more about your local market (or the market in question) you will get a better feel for what things go for.

As far as trends go I’m seeing more listings currently than I have in the past couple of years and I’m starting to see some with lower prices than I have seen in recent times. However I’m also seeing some nicer listings with higher prices. So at least in my market of Northern New Hampshire for the first time in 2-3 years we’re seeing some options.

@Ariel K. I have an instance where two tenants, a mother and a teenage daughter are using 3X the water of the other set of tenants, which are two sisters. Every month the one water bill comes in consistently $40 higher than the other unit. And about $50 higher than another comparable unit I own across town with a husband and wife.

The sisters and my contractor report that the unit in question ALWAYS has their washer running. We suspect she is taking in laundry as a side job.

This would not be the case of an extra 4000 gallons per day, likely only a few hundred gallons. Do your tenants have their own washers/dryers?

@Xavier Perera If it’s financially feasible I suggest starting by house hacking a 4-plex. The cost shouldn’t be double what a duplex is, but should likely be less per unit.

The learning curve wasn't any bigger for my first 4-plex vs the SFH then subsequent duplex that I bought.

Where I got into my first big learning curve was when I bought my 8 unit, both in the increase in number of tenants and because it was a fixer upper with inherited tenants that had also been neglected and mismanaged for years.

I’d recommend starting with a property that needs little/cosmetic work that can be rented from day one, and preferably has existing tenants. That way you can hopefully do renovations as tenants move out one by one and start to build your network of contractors.

Once you’ve got a little experience under your belt then you can attempt buildings that need more renovations/repairs or have had management issues.

If you initially end up needing to raise rents I like to do them one at a time to minimize potential turnover from happening in multiple units at once.

@Lincoln Waite Our units where utilities are included are at least $200/month more than units where the tenants pay their own.

I’m guessing your rents are far below market value.

I’m getting out of the business of paying for utilities because too many tenants had the heat set at 78 with their windows open when it was -20 out.

I just converted a 4 unit to individually metered propane Rinaii heaters and the final cost was about $24,000. I’m guessing it will take me about 3.5 years to recoup the cost. My oil bill is now for about 40 gallons per month or about $165 as opposed to $800 2X per month.

If it’s sustainable in your market you might consider mini splits. And separating the electric.

My last electric split my electrician gave me a list of the big things I needed to purchase and he told me to buy them from an Electrical supply company on EBay that sells all new products and this saved me about $4500.