All Forum Posts by: Esther Tama

New to REI this year, but prepping my files for taxes in the future. Besides the bookkeeping files from my PM, what are other things I should be preparing and filing to get the best tax benefits with REI? Do you guys use a CPA if you have less than 5 properties, or is it simple enough to do your own taxes? Any tips on getting the most refund and not pay on profit/gains?

Hi Phil, don't be discouraged. You're on the right track. I listened to MANY MANY podcasts and real estate books, and practiced running the numbers using the BP Calculator (if you haven't tried this, it's so awesome), but even then numbers can be a bit off. The best knowledge is experience. 

One good question I keep being reminded of is select type of properties based on your goal - SFH for long-term, multi-family for short-term/cash?

I just started my venture into investing with 50,000 of my own money, purchased a turn-key SFH for long-term rental in Indiana area. The price of the home 103,000, the insurance was $750, and property tax (this is rising!!! do your research on this), is about $1000. PM is about 10%.

I would say - first get a really good agent. Then, begin searching early for PM company. The PM company can become your partner when acquiring properties. I began asking mine, what do you think about this property? what would it rent for? Would this property something you guys would want to manage? PM can give you costs for almost everything. 

 Hi Nick, I'm from SoCal as well and just started investing in Muncie, IN. I would love to jump on a virtual meet or call with you as well. 

I'm using Middle Town Property Group, LLC near and around Muncie, IN. They seem to have a expansive map area. I would look into them.

Hello all, I'm from SoCal and just started investing in Indianapolis. I just closed my first SFH for long-term rental. Any new and/or experienced OOS investors interested in INDY area or investors from the INDY area willing to begin a virtual meet-up group?

This was a good learning experience. Since it's a "seller's" market, the current owners asked for 30 day possession. We didn't previously agree on me, being the new owner, allowed to market or even enter the premises. In the future, this is something that can be negotiated at the PA. This is why the first time home buying is a great learning experience - because now I know that I need to spell out everything. And agents, too, learn this way. 

These are such great suggestions! Obviously, my agent was not experienced with investors because these things were not discussed. Really proves why having an experienced and knowledgeable agent is important. 

And being a newbie, I didn't know to ask until now that we are at the end of the process. Hopefully my property management company can help. I just don't understand how it's technically my property but the current owners get to live there for free for 30 days, and also thwart my endeavors to get a paying tenant in there. 

Thanks for the input! That makes sense. Reading the PA, it only mentions occupying, but nothing more specific. The home is not currently a rental, so it's being lived in by the owners. I don't want to do any renovations - all I want to do is list for rent, and be allowed to show the place to future tenants. 

Hi BP family,

I'm closing on my first rental property - SFH - next week. The purchase agreement noted that the current tenant/owner has 30 days to move out from the date of closing. I told my agent that the property management company would like to prep and put it up for listing as soon as it close, which entails showing it to potential new tenants. My agent seems to think the current tenant/owners have the 30 days until I can do such thing, but I feel like as the new owner, I have the right to go in and do what needs to be done so that it can be occupied right away. What are my legal rights here? HELP!

Hi BP family,

I'm closing on my first rental property - SFH - next week. The purchase agreement noted that the current tenant/owner has 30 days to move out from the date of closing. I told my agent that the property management company would like to prep and put it up for listing as soon as it closes, which entails showing it to potential new tenants. My agent seems to think the current tenant/owners have the 30 days until I can do such thing, but I feel like as the new owner, I have the right to go in and do what needs to be done so that it can be occupied right away. What are my legal rights here? HELP!