All Forum Posts by: Jeremy T.

@Jon Holdman  Thanks for compiling this, very helpful and pragmatic!

Definitely a great podcast, possibly the best one so far. Thanks!

So I tried QuickBooks and Buildium, both great and snazzy but ultimately using Excel is just faster and with Office 365 I literally create a clear audit trail (my job has me working with auditors everyday...) by inputting all transactions and including a hyperlink to where the bill/receipt/pdf, etc. is located on OneDrive. etc. etc. I'll post my system later once I answer this question and make sure it's all pretty close to following the right rules,...  but here goes - 

So my Excel spreadsheet tracks all business activities according to where it falls on IRS Schedule E - that is rents received or one of the items in the expense category. Problem is, I don't know where to put "principal" because while I want my spreadsheet to pop out what's needed for my CPA I also want to see the end of the day cash in and cash out net. Currently, I am categorizing it as an Asset (choices: Asset, Expense, Income) and leave it blank in my column that has the Schedule E choices. 

Is there a better way?

@Troy Sheets  good point about the fishtown premium, we're definitely on the same page from what I hear being anywhere from 50-100% premium...

Thanks everyone, really good points to think about. Going out to see a few places this weekend but leaning towards fishtown (or vicinity). I have a couple places in southwest philly so gray's ferry seems like a natural migration, will have to compare both and see what's available at what cost.

Whether you live in Philly or never want to visit this question is still for you, and any feedback is greatly appreciated! Is it better to buy in an area on the up or an area predicted that in the future it will be next to boom? That's partly the story of Fishtown vs. Gray's Ferry according to this novice real estate investor.

Fishtown pros - proximity to major highway and transport lines, shopping of all sorts nearby and fair share of boutique pro chef restaurants and micro brew style bars, name already seen as hip and flippers proving buyers will pay a premium to move.

Gray's ferry pros - major hospital and university expansion started just a mile or two away, prices still mostly accessible, near major highway and transport lines. cons: doesn't carry the popularity of fishtown and still seen by most as street-by-street, there's little or no shopping and certainly no restaurant or hip bar scene.

My current strategy is buy and hold for the long term. I'm not a flipper and prefer turnkey rentals. Fishtown seems like an easy "yes" because while you pay a premium to get in where it's already heating up your certainty of appreciation and escalating rents is much greater than hoping the big university and hospital improves the neighboring areas and creates more demand for mid-market or premium quality housing. However, the lower prices of Gray's Ferry means your investment goes further without much loss of rental rate in the near term and potential for appreciation in the long term.

Is Fishtown worth the 30% +/- premium?

Should I split investment between the two areas?

What am I not taking into consideration?

I may have answered my own question, but will post for anyone in a similar situation. Assuming the source website is legit, the tax law can be interpreted that if you only own a few properties and it's in your name (or an LLC and you and/or your spouse are the sole member) then you do not operate a trade or business and are not required to issue a 1099 regardless of >< $600.

http://landlordsolutionsinc.com/2013/12/does-your-handyman-need-to-fill-out-a-1099/

However, I did read on this BiggerPockets post: http://www.biggerpockets.com/forums/51/topics/87325-issue-w9-for-work--600

... that it's generally a good idea, good practice.

One of my tenants is handy with repairs and I have used him to fix issues in units and turn around units to rent-ready. I claim a deduction for the material expenses which I buy at the store, but the labor I just write off as a personal expense and don't claim a deduction.

I am assuming that because I don't claim a deduction for the labor that I don't need to ask my handyman and sometimes informal property manager to fill out a W-9 which he is reluctant to do.

Thanks in advance for any tips.

Hi BP, Philadelphia investors:

I read a post somewhere in BP recommending landlords to work with a social welfare or community development program when looking for new tenants. Does anyone know good groups to contact for a Philly landlord looking for a good source of tenants?

I spoke to the Philadelphia Corporation for Aging today. They do have a program that places seniors into rooms, e.g. 2-3 people to a 3 bedroom house. They have more clients than housing available. They do the math to figure out which personalities work best in the same house. I was told they can arrange good matches for the house, moved in within a month.

This could be a good opportunity if you are looking to contribute to the community and earn a good rental income. If you want the contact info for the person I spoke with send me a message. Or, call their general number and let them know you are a landlord interested in including your place in their program.

-Jeremy

Great app! thanks.

@Joshua Dorkin would be great to have the mailbox function added to the app. Also, ability to 'favorite' forum posts for future reference.

Hi Will - thanks for the welcome!

Hi Brandon - Yes. When I took the owners certification course at PHA I filled out the form to be added onto the list. I believe that was a couple months ago.