All Forum Posts by: Jamie Banks

@Jillyan MacMorris she's an experienced MTR operator in Chicago

What bookkeeping software do you recommend? I'm using Baselane but curious if you have a software that you recommend to your clients?

I would structure the lease as a corporate lease to the company, if the company wants the lease in the occupants (employees) name make sure to get a letter of responsibility from the company stating that they're financially responsible for the rental agreement. 

Personally I wouldn't get into an investment that only provided a 5% CoC return. Savings rates through high yield savings accounts and CDs are almost at 5% (maybe 4% now) but they'll much more passive than real estate. Because of the manual effort that goes into real estate I expect at least a 15% cash on cash return for my investments. However, everyones financial situation is different!

Something I HIGHLY recommend is having a suitable work from home set up. In all of my units I include a private workspace that's in a room with a door that closes (important for video calls), a comfy desk chair, monitor, keyboard, mouse, and hdmi cables. A king bed is also a HUGE plus. I am working on adding king beds to my units that allow them. 

I don't think a sauna and hot tub are necessary for a MTR. You won't be able to charge a premium for these items like you would if it was a STR.

I operated in Baltimore city for less than a year. I exited the market due to the short term rental regulations - properties that are rented under 90 days are considered short term. Short term rental permits are only granted to owners who will be renting their primary residence. Because of this, midterm rentals need to be rented for MORE than 90 days. It's very limiting to only be able to rent 3 months or more minimum. Because of that I decided to exit the market as a co-host. 

As an operator in the midterm rental space, I remember being frustrated with the lack of resources designed to show investors how to operate MTRs. While it's important to know how to analyze, acquire and furnish midterm rentals understanding how to create a profitable business out of them is essential. Check out my MTR course to learn how to find, fund furnish, and operate successful midterm rental properties. Use code Bigger Pockets for 25% off!

Glad to hear that it's working for you! I have different LLCs and partnerships too and it can be a hassle if things aren't organized correctly @Matthew Banks

I use Baselane for my bookkeeping. While Quickbooks is great, it's not a software designed for real estate investors like Baselane is. I also enjoy having multiple functions of my business (bookkeeping, banking, and property management) in one software. When it comes to tax time, Baselane has a feature to download the tax package needed to easily send it over to your CPA. 

Hey Joshua! I recommend looking at Furnished Finder, Airbnb and Zillow for comparable MTRs in the area to understand pricing and the level of furnishings you need to be competitive.