All Forum Posts by: Heather Miner

@Willie R. Thanks for the head's up . . . I will have to check into that. On all (!) the forms we've filed in the last 8 years, we've never had anyone question the single member LLC (and we're very clear that this is a husband/wife team). I will be filing taxes for us this year (a first for me!), so I may peruse the IRS's website for clarification.

@Colby R. You're right, we may be violating the terms as I think most mortgages don't allow this. I have not heard of a called note unless there's a lot more to the story (e.g., payments aren't made on time). And, all mortgage lenders are aware of this tactic and the Quitclaim Deeds are public information. So, clearly the violation of Quitclaiming to an LLC ins't their top priority. That being said, we're really under-leveraged and can handle paying the full note if needed. I'm not concerned. I also go over the speed limit sometimes. :)

So, I've only used backcountry huts . . . no experience with owning them. I recommend talking to a ranger about their maintenance as it may be more involved than you think. Although guests are supposed to keep things clean and to report low inventory/missing supplies . . . we don't find that to always be the case. It feels like the best huts are periodically checked and cleaned/resupplied as needed. As for vacancy rates, here's a hut that has been operating for a while and probably better reflects usage. If I were you, I'd offer to buy this person dinner in exchange for picking their brain. 

https://www.airbnb.com/rooms/975746

@Bill S. Most huts require a signed waiver . . . maybe that helps with the liability aspect.

@Willie R. Colorado is not a community property state. We have not invested out of state yet . . . but plan to in 2018. We're researching the various landlord/tenant laws in different states and will consider this concept as we move forward. Thanks! 

(FYI - I didn't get your mention . . . make sure to select a person's name from the little menu that pops up as you type @name).

We have 10 units. Four units in Denver area, two in Colorado Springs and four in Grand Junction. We jumped around as the market caught up to us and now we are looking out of state for the next one(s). 

We have a single member LLC (just husband and wife are members). We purchase all properties in our name and then file Quitclaim deeds to transfer to the LLC. We own four rentals. I don't know how scalable our model is for you, but we plan to continue this approach.

@Dan V. Thanks for the feedback. I see the difference between Class and Location (categorize entire transaction only versus per line), but I was trying to think of something I've paid that has covered more than one building. I'll keep this concept in mind as I finish 2017 taxes . . . if any transaction covers multiple buildings, I'll find out soon. :) 

Do you track subclass by units? If so, do you make any business decisions based on per unit comparisons?

I'm curious, why would it be recommended to have a different QBO file for each entity (LLC?)? Since I'm reporting on my personal taxes and going forward one LLC = one building . . . I don't see any benefit to multiple QBO subscriptions. Maybe separate files would be more applicable to other folks who have a different tax status. If you see anything I am overlooking, let me know.

Your last two sentences summarize my goal for 2018! :)

@Gordon French Thanks for sharing your (unsuccessful) approach and what ultimately works for you. That's cool that you wrote your own program. 

Thanks @Gordon French! Yeah, I think there are other software programs that may be better customized to our industry, but for ease of helping family members also using some version of QB I decided to join the crowd. 

My accountant is . . . me! I like knowing the ins and outs of this business so I tend to learn as much as I can before outsourcing.

Hello Everyone! 

We are a husband/wife LLC (single member LLC, disregarded entity) and report our rentals on our personal taxes. We currently have four multi-families in two LLCs (10 tenants). We plan to add more small multi-families, probably in another state.

We are just starting with QuickBooks Online (graduating from Excel and a few shoeboxes). We have a Plus subscription and are using the Locations (Properties) field to track finances by building for tax purposes. We could also use Classes . . . for tracking per tenant . . . or tracking per LLC . . . or ?? One possibility is to use Classes to track per state, once we start purchasing more properties.

However, when I think of the additional time and potential errors when tracking by both Classes and Locations, I ask myself what is the benefit to Classes? I honestly can't think of one actual benefit. Do I really care whether the fridge was purchased for tenant 1 versus tenant 2? If we have a single LLC per building . . . . then there is no need to track LLCs. However, the internet clearly states I should be using Classes to track per tenant.

I certainly understand that more details captured on the front end provides more detailed account reporting. But, I want to balance how much I will actually use the data versus how much time it takes to capture it. Please share your thoughts and feedback. Convince me I'm wrong to ignore Classes! :)

Welcome to Denver! Unless you are not planning to stay in Denver for the long run, then I would sell the Austin house (you are only losing $100 a month now, but repairs, maintenance, etc. will push that negative higher), take the cash, and do a house hack (a new term for me!). That way you're investing in property in Denver, but can learn through a hands-on approach. Once you save enough, you can move out and rent your unit too. Best of luck!