All Forum Posts by: Cody Benedetto

^^^ All excellent points. Credit card debt is typically the highest interest and the "worst" debt to hold. If possible, knocking out any/all credit card debt will help to set that foundation. 

Sounds like very valid concerns. It sounds like you aren't planning to continue investing where you live past this one property? Since you already live in the area and are comfortable with the potential rental income, why not hold that property and work towards a 2nd investment property outside of the Baltimore area? I've always liked the idea of having 1 rental property in my current neighborhood to keep tabs on the market, easy to self-manage, and stay cash-flowing while providing housing in my area. All other efforts could go towards that next opportunity to diversify. 

For cap ex, it might be helpful for you to use a fixed % of rental income to budget for (5-10%). 

@Carl Flint not that I’m aware of, I’d talk to your bank and tell them specifically what you need your accounts for. They should advise on what accounts are best to use for rental income/expenses. 

@Ryan Guffey upon purchase I padded the account with enough to be very comfortable. If for whatever reason capex were to deplete I’d replenish accordingly. Hopefully that never happens but I sleep better know worst case scrnario, something bad happens and I need to drop $10k on an unexpected repair, it’s already there.

You can also reach out to local property managers who truly know their market. They can help you to have realistic expectations on rent rates in the area, especially if you're planning on have a PM manage the property. It's in their best interest to be as accurate as possible. 

I don't have a vacation rental "yet" but I know that when I do, I will be clear that no clearing/cutting of trees is allowed and guests are responsible for their own firewood. It's one less expense and thing to worry about. Also, chances are that most guests will leave any leftovers so there may be some bonus wood here and there. 

Tough situation but some great ideas in this thread. I think the best thing you can do is control the controllables and make sure your neighbor knows everything you're doing to make things better. I would clearly explain that you can't make things perfect, but here's the list of things you are doing to help mitigate issues. Updating your description in the rental listing can help to deter unwanted partiers and make it clear it's a quiet/family neighborhood. 

Everyone has their own style and preference. I have a separate account for each property and manage expenses/income in a spreadsheet. I think keeping accounts separate is helpful in extremely helpful especially when reconciling and doing your taxes. I always try to have a specific base level of money in each account for reserves.

I highly recommend separate accounts. I have a separate checking account for each of my properties where I manage their finances. For the one that I self-manage, I also have a separate interest money market account where I hold the security deposit (if you use a property manager, they often manage this). Even if you have a property management company, it's worth isolating a checking account to keep things in order. Best of luck!