All Forum Posts by: Arlan Potter

Two weeks ago, i had three calls on a Monday Morning for water heaters not working.  

One new water heater

one new gas valve

one just light the pilot

What a way to start the week 

It is not rocket science. You have done it for others. You can handle it. I built my first small house at 23. 

I would not. Keep personal separate from business.

Each Property address is a customer

Set up the Monthly rent as a recurring invoice

Receive payments against the invoices

When Paying bills/expenses, always put a customer/house address(in the name field) where the expense was incurred. Such as if you received a bill for a plumber, put the house(customer) in the name field. This is for financial reporting by house.

Doing this you can print or look at a P & L by house or in total. Individual will be used to enter to your schedule E for your tax return.

Also when you initially buy a property, enter the house as a Fixed Asset named the house address. 

Now you have a quick lesson.  I have used QB for over 20 years for my rentals. It works well if you know how to set it up. You will pick it up fairly easy.

I never had a team. 

I did have a real estate agent whose name was on a Realtor sign in the yard of a house that I happened to drive by. I called him and he helped me buy the house. Then he called me and said he had another deal. I guess he was my team(still is). That was 18 years and probably 150 houses ago(some sold)   

I had an attorney recommended to look at the title docs. I have used several attorneys.

I keep my own books, I manage my properties. 

If I had waited to build some kind of team, I would never had bought rental properties, I would never have built new houses, sold houses....

@Elizabeth Moore

How many properties do you own?  Rental income doesn't cause self employment taxes, Good insurance beats an llc unless you have a lot of free and clear assets that insurance wont be enough(That is if you are negligent). 

What is the point of this process?

Can it ever be fair when the one with the cash immediately loses control of his money. Investor two has zero risk. If it goes south, the hard money lender forecloses and gets the property for half what you as a group pays for it. Cash investor loses everything, investor two loses no assets.

Oh but the broker swears that........Right

I have had enough. It used to be a good deal. Pay their annual fee. get advertising. Self manage your property. manage your calendar. Then the service fees started. They went from a few hundred per year on my one unit to a couple  thousand. Their  company revenues had to sky rocket. Then they stopped paying you upon the deposit and made us wait till the guest arrived. They also force you to use their payment system which is high. And now I am not sure I will get paid. I am at least two weeks past due on a late May guest.   And of course, no one to talk to.  Indefinite hold to talk to anyone. I am at a loss.  I cant renew with them if its stays like this. They have lost it.  

Rent Minus expenses equals taxable income,  All goes on a schedule E of your tax return.

Expenses :

Maintenance, Repairs, Property Taxes, Insurance, interest, Depreciation

You are correct in that Saving for future expenses is not deductible.

@Nick Williams

One of my mottos, learned the hard way:

Never rent to, loan ,money to, or partner with family or employees.