All Forum Posts by: Chris Wilkening

Hey all,

So I have a plumping bill coming that will be fairly expensive.

Currently I have two SFH rentals and a checking account for each property. The property receiving the bill does not have enough to cover the expense.

I’m curious how to best pay for this. The other property’s account does have enough to cover it. My personal income/savings could also cover it.

What is the best strategy? I just don’t want to end up in a bad situation come next tax season.

Thank you.

I upped the expenses to 20% to account for insurance. The property tax was accurate for my property, but worth double checking. I also lower the rent they have by $50 to account for their lower end of their projected rent.

so far so good. Will use them again.

1. Like the others have said, easy. Very easy.
2. You get systems other people created.
3. Less time.

I saw some mentions to turnkeys being "overpriced." I purchased mine from @Nathan Brooks. It was appraised by a large regional bank for $2k over asking price. So I did not "pay a premium", I paid market value and the home still cash flows. Will this happen with every property? No way. Just have to vet the seller, market, and PM before paying market rate for something.

The way I see it, you can either build your own systems or buy into one that someone else made. Each have their own rewards.

@Michael Ablan The question was about what to do with profit if there is any, not if the deal was good or not.

@David M. Yes that makes sense. The property has it's own checking account (not LLC yet).

I'm pleased with Voepel so far. They answer when I call and respond to emails the same day. I've heard that they don't accept new clients with fewer than 5 properties if they weren't referred from Bridge (but I have not confirmed this with them).

Voepel's current fees are:
Monthly fee= 8-10%

Leasing fee : 50% months rent

Renewal fee : 25%

While fees are important, I'd have a list of questions to ask them to better informed on how they do things and if they align with what you want.
I got mine from Chris Clothier's turnkey book, but I'm sure there are plenty on BP too.

@Jaysen Medhurst Yep, capex maintenance etc...
I like that idea, I'll keep that in mind.

Recently bought my first rental property. After all expenses it should cashflow around $157 per month. 

My question is when do I withdraw the profit? Ideally the reserves would cover anything that came up, but you never know when a large unexpected expense comes up. 

I'm saving up for house 2, do I take my $150/month and move it into my savings account? Or should I keep it in the checking account and withdraw the profit once I'm ready to buy the next one. Seems a little trivial but wondering how you all handle this.

Thanks!

Decided to go with a local person in my area. Appreciate the input everyone.

Thanks for all the thoughtful responses everyone. Great points made for both.

I have one property that I purchased in 2019 from a turnkey provider, so there were no expenses on my part other than getting the mortgage. The first tenant moved in in January, so there was no income in 2019.

Is the depreciation etc. something I need a professional for yet, when I haven't had any significant income/expenses on this property?
The rest of my taxes are straightforward. This property would be the deciding factor on if I hire someone, or stick with TurboTax.

Thanks everyone!