All Forum Posts by: Denny R.

Hello!

Can anyone recommend some good CPAs around the Metro-Detroit, Michigan area?

I am looking to speak with someone that can help with my taxes and accounting practices. Ideally I would like it to be someone who has experience in dealing with rental properties (owning some would be even better!). I'm also looking for someone that might be able to reccommend software (QuickBooks, Wave, etc.) and that can provide some help in implementing the software. 

I would like to straighten out my accounting before I start acquiring more properties.

Thanks in advance!

Keep researching @Nathalie Ohayon! It can be intimidating, but it's actually not as bad as newbies make it out to be. With a little due diligence and action, you can make it happen!

I appreciate it, @Garrett F Anderson!

The mortgage cost can be used by a simple calculator found on Google or a lot of other websites.

Tax rates can be found on your state's website most likely. I found mine on the MI Dept. of Treasury website. be sure to use non-homestead taxes as this is a rental property!

Instead of budgeting a number, I used percentages for my expenses, management, capex, and vacancy. This will all be based off of what you are receiving for rent. These percentages will be determined by a number of factors. Do a little bit of research to find out what percentages make sense for your situation.

Plug all of these numbers into a spreadsheet, BP calculator, etc. and find out what your cashflow will be. My current Net Cashflow is $224.55. This can go up or down in the future based on the changes in the various factors that go into determining cashflow. That's why it's important to find a number that you think will be enough cushion to protect you from the fluctuations.

@Account Closed Hi Kyle, what are you referring to?

@Adam Krause sounds like you have a plan! I definitely would refinish the hardwood if you have them. Keep me posted on your updates.

Thanks @Isiah Ferguson! 

I have a connection in the area for good priced luxury vinyl plank flooring. It's waterproof and is pretty wear resistant. I wanted to avoid changing carpet every tenant. It costed more than carpet, but I am hoping it was worth it a few years down the road. We shall see. 

As for the countertops, I actually just purchased the Home Depot laminate ones. I believe the color was Typhoon Ice. I spent under $200 and they look great for that price!

@Adam Krause You're welcome! Just make sure to do your due diligence and interview those companies. I would say the same for making the house rent-ready. A good property management company can definitely help you with that process. Does it need any rehab? If so, check out what the other rentals in that area look like and gauge your rehab decisions accordingly. 

Thank you @Richelle Bryan! Owning mistakes is the only way to learn. I wrote this post to encourage others, but also to help reduce someone's troubles along the way :)

Thanks @Adam Krause! I am glad you found my response to @Bill E. helpful. It is very common for first month's rent and a percentage going forward. I was able to negotiate the monthly percentage, but not the first months rent. A lot of work goes into finding a solid tenant. This is their way of being compensated for it. The hope is that the tenant stays for a few years so that I do not have to pay this fee yearly.

Good luck finding that first property! Which areas are you looking in?

Thanks @John Clark! Westland was very easy actually. The property had a previous inspection right before it went up for sale. So basically it was ready to go after I bought the house. I did the renovations and contacted the city and got my house registered almost immediately. 

Congrats on owning 10! Which surrounding areas are you in?