All Forum Posts by: Matt M.

Excellent input and great points made guys.

But as a rule of thumb, I should def. keep my income funds separate from my personal savings right?

I happen to have a good friend thats a VP of finance at a pretty large medical corporation, so I will certainly be employing him when I make my move to investments.

Not being able to use a 1040ez basically answers my questions, and means this will be over my head and will need a good accountant come tax season.

So basically only 35% of my property and income can be taxed w/ a triplex? Or am I totally misunderstanding you.

For repairs, are you saying that MY apartment in the triplex cannot be reimbursed with tax deductions, but repairs made to the other 2 apts can be?

Rob K So every property deposits to one bank account, you just keep separate books and spreadsheets for each account? I suppose that would be far less work than my idea of totally different accounts per rental property.

What I'm asking though, is how much excess do you require before you say "I'm doing good, I can take this extra money out and put it into an additional savings/investment account"? Is there a percentage?

Well I'm planning on living somewhere where I will generate not only enough to cover the bills, but also put some money in my pocket. Also, even though 2 others will be paying my bills, I will still be contributing the cost of the mortgage from my personal paycheck into the same account.

I plan to do this until I have enough money and energy saved up to purchase an even larger investment property (think 10-20 units). Then I will rent out the last opening in my first unit (a triplex), and will get my own place to call home.

So with that being said, it seems the consensus is to make sure I have enough funds to cover any "oopsies" that occur, and then start transferring funds to another account that I will use for my next investment.

Jennifer Lee what do you consider an "overage" that you can use on the next project?

Rob K you dont have a separate account for EACH property? Rather, all of your properties deposit into a general account? If that is what you are saying, that idea makes me nervous as it makes it tougher to track gains/losses/etc for that individual property.

Also Rob, how do you know when its considered "enough" in order to start xferring to another account?

Excellent plan.

Although you seem to be an investment company, I plan to live in my first investment purchase... if that changes anything?

Do you pay off the mortgage at a higher rate? Do you put the money into savings for THAT property incase it needs work? Do you put it into its own savings account to use for future investments?

How would such a thing work? I've heard that if you make repairs to the property that you can claim exemptions on taxes and get the a percentage of the repairs back come tax season?

To my understanding, actually living in the premises, especially being a 3-home or less, will put you into a different mortgage bracket, tax bracket, etc...

Do I need to claim my rental incomes and then pay taxes on them at the end of the year?