All Forum Posts by: Joe Schaak

I had a very poor experience with REI Books LLC / Kirk & Joni Yates. I had listened to a podcast with them on Biggerpockets. I hired them to keep my books up to date on a monthly basis so that I could see where I was at with each property at any time. I filed an extension for my 2018 taxes so that they could have time to get the books done (I had hired them late in the filing season). However, when the deadline came for the extension, they hit me with a ton of questions dating back to January of 2018. All things that they should have / would have been asking if they had been keeping the books up to date. My accountant put in some extra time (and my money paying her) to sort everything out at the last minute.

We had a frank and open discussion about their performance and they took responsibility. I reiterated the importance of up-to-date bookkeeping and made it clear that I fully expected 2019 to be reconciled and completed by the first week of January 2020. First week of January comes and Kirk tells me that he has some questions which he'll get to me in a document. Several weeks later (in February), he finally gets the questions to me and they date back to January of 2019. The books were NOT kept up-to-date.

REI Books LLC / Kirk and Joni Yates cost me a ton of time and money. There is NO WAY that I would ever use their services again or recommend that anyone else does.

I had a very poor experience with REI Books LLC / Kirk & Joni Yates. I had listened to a podcast with them on Biggerpockets. I hired them to keep my books up to date on a monthly basis so that I could see where I was at with each property at any time. I filed an extension for my 2018 taxes so that they could have time to get the books done (I had hired them late in the filing season). However, when the deadline came for the extension, they hit me with a ton of questions dating back to January of 2018. All things that they should have / would have been asking if they had been keeping the books up to date. My accountant put in some extra time (and my money paying her) to sort everything out at the last minute.

We had a frank and open discussion about their performance and they took responsibility. I reiterated the importance of up-to-date bookkeeping and made it clear that I fully expected 2019 to be reconciled and completed by the first week of January 2020. First week of January comes and Kirk tells me that he has some questions which he'll get to me in a document. Several weeks later (in February), he finally gets the questions to me and they date back to January of 2019. The books were NOT kept up-to-date.

REI Books LLC / Kirk and Joni Yates cost me a ton of time and money. There is NO WAY that I would ever use their services again or recommend that anyone else does.

I had a very poor experience with REI Books LLC / Kirk & Joni Yates. I had listened to a podcast with them on Biggerpockets. I hired them to keep my books up to date on a monthly basis so that I could see where I was at with each property at any time. I filed an extension for my 2018 taxes so that they could have time to get the books done (I had hired them late in the filing season). However, when the deadline came for the extension, they hit me with a ton of questions dating back to January of 2018. All things that they should have / would have been asking if they had been keeping the books up to date. My accountant put in some extra time (and my money paying her) to sort everything out at the last minute.

We had a frank and open discussion about their performance and they took responsibility. I reiterated the importance of up-to-date bookkeeping and made it clear that I fully expected 2019 to be reconciled and completed by the first week of January 2020. First week of January comes and Kirk tells me that he has some questions which he'll get to me in a document. Several weeks later (in February), he finally gets the questions to me and they date back to January of 2019. The books were NOT kept up-to-date.

REI Books LLC / Kirk and Joni Yates cost me a ton of time and money. There is NO WAY that I would ever use their services again or recommend that anyone else does.

@Matt Higgins Thanks for posting about the software. Its definitely an interesting idea worth exploring. I have rentals and do flips as well. This could be a time-saver!

@Kevin Laurion, sounds like a success! Congratulations. I'm unclear how you purchased the property initially. Personal mortgage? Hard money loan? You probably said in the initial post but I'm being lazy by not scrolling through things. I can share my experience. I purchase using either private money or a commercial loan. Once rehab is completed, I refinance (if initially a private lender) or modify the existing loan (if a commercial lender) in to a commercial 5-year loan with a 20-year amortization. As that loan matures, we'll refinance in to a 30-year or an all-in-one if possible.

All that said, you're best bet is to talk with @Tim Swierczek. He knows the investor space and is a fellow investor.

Just a final update to close the thread. I ended up do forced air in both units of the duplex with separate heating. I also added AC as well. By adding a bedroom to each unit, I was able to cover the added expense of forced air. Thanks for all the conversation and advice!

@Kevin Laurion, If your numbers look good to you with the more conservative rents, that’s great! I always lean a bit more conservatively when running my numbers as well. It looks like you have everything figured in except any management fee. I assume you’ll self manage - even more reason to keep it near you. I ask my tenants to do the snow removal but I take car of the lawn because it avoids the hassle of babysitting them. Well worth it to avoid the constant notices from the city and it keeps the perceived value of the property/rents up.

Welcome, @Kevin Laurion! All these folks, @Jordan Moorhead, @Alyssa Strom, @Tim Swierczek, etc have given you very good info. 

I have several rental properties in the East metro - both multis and SFH. The things to look for when you purchase are the roof, age of furnace & water heater, a clear sewer line, strong water flow (I've had 2 properties that needed the water line from the city replaced), and fully operable windows. These are the bigger CapX items that I like to take care of on acquisition so managing is smoother. Along with some cosmetic upgrades, they should also help to rent the place out quickly. I own 2 townhomes and suggest you may want to dip your toe with one. Most exterior work is provided by HOA - lawncare, snow removal, maintenance, etc.. this makes management a bit easier. Make sure you account for the HOA fee in your numbers, though. Also, I use Buildium.com for management and find it indispensable.

Feel free to connect and ask more questions. You’re in a good position money-wise but spend it wisely. Add 20% to your rehab budget for safety. Good luck!

Thanks, everyone, for the helpful feedback. I’m leaning electric with programmable wall thermostats so they can control the temps easily. Each bedroom, the bathroom, and the living room/kitchen will each have their own thermostats. I’m replacing windows or installing new storms and new insulation in the ceilings (walls already have it). That said, I’m going to spend some time researching what other properties in the area are using to be safe. I would LOVE to do solar and make this a greener building but, unfortunately, the numbers don’t allow for it.

@Tim Swierczek, It’s 1 block west of Dale on Thomas Ave. This part of Frogtown is closer to a C-class area but it’s Frogtown none-the-less.

I think it’s more of a Sec 8 rents property. It will be a nice place but I just don’t think the neighborhood will attract non-Sec 8 folks.

Because of this, I’m leaning electric.