All Forum Posts by: Bethany Crawford

Thanks @Aaron Zimmerman and @Soh Tanaka!!  

Thanks @Simon W. - I think you're right, and at some point I'll need a professional to take care of this for me.  I have such a small operation that I'm trying to take care of it myself for now.  I'd love to find a resource like a local person who could just help me set my books up correctly. Let me know if you're aware of any specific resources like this. I use Quickbooks Online. Thanks! 

Thanks @Greg Scott !  To clarify, if I set up a mortgage account (liability) and a property account (asset) for one rental property, is there a way to ensure that a transaction (such as making my mortgage payment) will impact both accounts (reducing my liability and increasing my equity in the property?  I want to set it up so that Quickbooks understands what I'm trying to convey, but I'm afraid that I'm missing a step and that it won't all be cohesive.

I have another accounting question for you all!  If I buy a new rental property and use money from my checking account for the down payment, how should I classify that transaction in Quickbooks?  Should that cash expense be consider a "fixed asset"?  Is there anything else I need to do in order to establish this property as an asset in my books? Thanks in advance! 

@Kaitlyn Castillo - I don't believe he's on Bigger Pockets, but I bet you can find a huge number of similar resources in the forums here! :)

I'm still in the "getting started" phase for sure, and while I wouldn't say that I found a mentor, I did accept a lot of guidance from a trusted friend who has been a step ahead of us along the way. His primary objective is to be a buy and hold investor, and he works full time for a property management company. He's happy to share lots of the lessons he is learning from his experience, and we are not shy about asking questions!  Instead of having one mentor, sometimes it seems helpful to see everyone you come across as a pseudo-mentor - you never know when you'll meet someone with a useful tip to share!! 

I don't know if this is possible or not, but I wonder if there are any opportunities to do part-time work (if you have the extra time) for a property management company. I haven't been able to have this experience myself, but I feel like there would be a wealth of knowledge to be gained. 

@Mala S. Thank you for your comments! These things needed to be said. 

@Kyle Soderman I couldn't agree more with the measured responses that advised standard screening of this tenant's financials and proceeding as you would with another tenant.  While some seem to have taken a pessimistic view of the situation, there appear to be a lot of silver linings. Having a tenant who is emotionally invested in their home isn't always a bad thing. It may mean that she will continue to care for the property as if it is her own while she continues to raise her family there. If she cares enough to stay in the house, then she likely wants it to remain in good repair. I don't believe you commented on the current state of the property, the market value of the property (and/or presumed income level of tenants), or their apparent dispositions/attitudes. Taking those things into consideration might help make this decision.

I get that in comparison, it's not the most lucrative way to invest, but I can empathize with your desire to start out this way. It might not get to the highest rate of return for your dollar, but it's better than not investing at all. And if it feels more comfortable for you that way, then I'd say go for it. It's just the first one, and you might feel differently about the next. Or you might get more comfortable once it's been steadily rented and decide to take out a HELOC to get some cash back out so you can start on the next one sooner. Make sure you keep something in reserve for emergencies, and otherwise don't let anyone think you're crazy for being under-leveraged!!

Ah, got it! I'm using QB Online - that explains why I'm not familiar with the class feature. Thanks Jay!