All Forum Posts by: Lawrence M.

@Ricky A. Thank you for that! I was understanding it but the way you explained it helped out tremendously.

Looking for guidance/confirmation on a workaround to billable expenses in QBO 2022 without upgrading to Plus or Advance. We have water, sewer, and trash that remain in our names (required by municipality) then we bill the tenants with no mark-up. I understand that Plus/Advance make it simple but can't justify paying those prices if billable expense is the only functionality I need at that level. Not operating as an LLC or other type of business, taxes will be on 1040 Schedule E.

I know that they do include in the default COA "Billable Expense Income" in Income already. I set up a Service in Products and Services and linked it to the Income Account "Billable Expense Income" (BEI). Then I will invoice them using this Service. So when I record payment on this invoice that income will be marked as BEI. My understanding then is that BEI is not taxable revenue and not included in rental income on Schedule E (correct?). 

What I am not sure about or don't understand is the Expense side. How do I record the expense (my payment) to the water authority. Am I missing anything? Assuming, I don't want it to recorded/or be included as a deductible expense at tax time since it is not taxable revenue. 

What did you find sketchy? I'm looking at them currently.

Update: Immediately after posting this I found this 

https://www.oregon.gov/newsroo... 

@Carl Manning thank you for this information, you've given me a ball park now, much better nothing at all. Used your suggestion on a property in Lancaster tonight actually just to see how things worked out. It came out to be about $40k below listing at 75%, or $48.5K at 70% and definitely see what you mean @Ken Vesely. 

I know that the best way is to walk the property, know the costs of material and labor for what needs to be done and that will come over time and experience. Looking forward to locking in our first flip. 

I'm starting to analyze deals in the Central PA (Carlisle, Mechanicsburg, Harrisburg, Lancaster) area. I'm looking for suggestions on how others have come up with $/sqft to use in deal analysis for Flips and BRRRR's. This would be just to do an analysis. Or what other methods do you use to plug in a rehab estimate for analysis?

I've been reading Luke Weber's The Flipping Blueprint where he uses 3 levels at low $20's, high$20's, and low $30's per sqft. I see how this makes it quick and easy based on what type or how extensive of rehab you plan to do. 

@Cory Iannacone very inspiring success story in the Central PA, especially in Carlisle! We just closed on our HELOC this weekend so we are hoping to that 2022 kick-offs our investing journey. Thank you for sharing!

Been looking at a downtown storefront with 6 units on 2nd and 3rd floor and struggling on how to know if the asking price is reasonable. I have a little understanding that commercial is based on current income generation of the property; however, there are no current leases. Any insight?

The storefront is approximately 1,920 sqft and is currently occupied by the building owner and is running a tattoo business out of it. There are four 2-bedroom and two 1-bedroom apartments total. The apartments have not been rented for some time, last one was vacated early Spring. Significant rehab required, a couple apartments could be rent ready with some quick finishes. 

Looking for any suggestions on books or anything that give more insight on appraisals. Or even your tips. What things could help increase the appraisal and what things don’t.

I understand the basics on comps and adding bedroom/bathroom and other major capital expenses. What little things or smaller budget items could have a big impact?

@Jeffrey Hillen thanks for the welcoming! Definitely open to connecting. Do you have any networking groups in the area you would recommend? 
I see your from NMB also? I lived in Myrtle Beach in 2003 - 2005. Got my first taste of real estate there before the bubble bursted. Luckily I got out before it was too late. 

@Krishna Vakk thanks for the welcoming. I saw you are or were trying to work a 6unit deal, would be interested to know the outcome or lessons learned. Any networking groups in the area you would recommend?