All Forum Posts by: Simon W.

I have soon to be four long term rental properties and I am curious what is the best way to keep funds separated and do you want/need to separate them?  Do you have a checking account for property taxes and insurance, one for repairs and maintenance ?  What I the best strategy to keep them all straight so you don't utilize one for repairs and then finds you are short for insurance when it comes due?  Thanks Rachel Reiman-TurnStyle

Thank you for such a quick response, Simon!

In my example, I wouldn't be intending to pay down any extra principal, I'd only be intending to pay down the amount of principal required by my overall mortgage payment.

With your help, my takeaway is this:
It is possible that some of my depreciation expense could be able to shield the funds that are used to pay down the principal balance portion of my property's mortgage. It just depends on my unique set of circumstances.

Thank you very much for such a detailed response!

If income from my W-2 job is above $150,000 and I am not an Re professional and I have no other business, in my zero cash flow example above, would some of my depreciation expense shield the funds that were used to pay down the principal balance portion of my property's mortgage?

Hi all!

If I had a rental property with exactly zero cash flow at the end of the year (after paying for mortgage/escrow/insurance/maintenance/etc.), would some of my depreciation expense shield the funds that were used to pay down the principal balance portion of my mortgage? If not directly in accounting terms, perhaps in a roundabout/in the big scheme of things way?

In this situation with exactly zero cash flow, since the funds used to pay down the principal balance portion of my mortgage would come from rents collected, it seems logical to me that some of my depreciation expense would shield those funds, rather than 100% of my depreciation expense carrying over into the next year.

Thoughts? And thank you in advance!

We are looking for a tax accountant and bookkeeper for a real estate construction company who will also be diving deeper into the commercial world.  Who should I be talking too?

Thank you!

 Thank you Sean. I will be reaching out to local property management companies but wanted to see what the BP community said first. Have a good day!