All Forum Posts by: Bruce Weyer

Hey Shaun, thank for all of your help. 

Hi, has anyone on BP successfully completed a BRRRR in Dayton, or surrounding area? If so, who did you use for rehab work? What bank for Refi? and what property mgmt co are you using if any? I'm looking to do some deals in Dayton with private money. If you have experience in this area, I would love to connect.

The school board in Centerville OH is trying to have the county access my property for the full sales price at which I purchased it. Does anyone have any attorneys they can suggest that can help me? 

I own a duplex and a 4 plex, each of them have their own insurance policies. The 4 Plex is in a LLC, and I'm thinking of putting the duplex in the same LLC. Both individual properties liability policies max out at 500k. I want another separate insurance policy (like an umbrella) for more coverage in case something happens. Can someone explain how they have done this ? or who to contact in Ohio for this? My insurance agent there seems to think that I need to take out a personal umbrella policy. My personal home insurance agent seems to think an umbrella policy will not cover the LLC because that is the point, it's a separate entity. Can someone explain all this? or help?

Hi,

I'm looking for a good real estate CPA. I have a duplex, and i'm closing on a 4 flex this week. I don't have a great CPA, can anyone help me? I live in FL, and my properties are in OH. 

I'm curious if anyone has started a series LLC in Florida or Ohio? I live in FL but own property in OH, so where do I start it? Also a business question about LLCs in general, can I buy assets through the LLC? and does the purchase show up as an expense that I can take off of my income for the year? I hope this makes sense.

Hey @Gita Faust thanks so much for this post, it sounds like you are thinking the way I'm thinking. I am tracking every transaction in QB online. The only thing I am accruing is property tax, and that is a for sure expense that will be taken annually (in my case in OH, two times a year) this helps me keep my income statement as accurate as possible, and keeps my balance sheet at accurate as possible. It would be really easy to unwind the property tax accrual for each month if I wanted to look at the cash basis. 

As for the other items that I account for each month, to be a good investor, I reserve repair and maintenance of 8% of gross rental revenue, 8% for vacancy as well, and 5% for Cap Ex. but these are reserves. monthly it looks like this. 

Debit: Repair and Maintenance reserve account 8% gross rental revenue (this is a sub account of my main checking account, and only used in QB online, if you look in the actual account, the money has not moved, this is for cash flow/accounting purposes only!)

Credit: Cash Account 8% of gross rental revenue (again, money did not move in actual account, I just re allocated it to another reserve account. 

I repeat this process for Vacancy, and Cap Ex. this way I have not actually taken an expense! this also corresponds with the matching principal of accounting. 

If I have a Vacancy or repair, or cap ex. I Credit the correct reserve account and debit the actual expense. 

Please let me know if you have another, better way, of doing it. I feel that this way, they only expense actually accrued is property tax, and they other are just reserve accounts, this also lets me see how much I have saved for each expected reserve, and let's me know how much cash flow I have. 

this way my balance sheet is in order, and my income statement is correct. 

oh and also @Brian

@Brian M Sweeney my only rental property is in Dayton OH, it's a duplex. and I live in FL. I see that you are from OH.

@Brian

@Brian M Sweeney yes, I am. my understanding is there are 3 main types of income. Passive, earned, and portfolio. I guess im asking if my passive "loss" can be deducted from my "earned" income? or does the IRS silo it? can passive income losses only be deducted from passive income? or can they be mixed?

Just curious as to exactly how owning a rental property can lower my AGI (adjusted gross income)? I have heard that I can take the following:

depreciation, but doesn't this just lower my net income for the property? what happens if I take a paper loss?

Interest expense on loan?

Home office? 

any others I'm not thinking of?