All Forum Posts by: Luke Ostergaard

1. Are you all typically taking payment up front or on a month by month basis? I assume this would depend largely on whether you are booking through AirBnB/VRBO or another source but I wanted to see ya'll's opinions.

2. What are some specific modifications I should make to the lease? I planned on listing on furnished finder then using a similar process for screening/application/lease signing but I figure the lease for a MTR vs. LTR should have some addenda specific to the shorter stay.

Thanks for all the help. I look forward to hearing your suggestions!

0 Votes

Mobile, Alabama

Quote from @Gee Williams:

Hello ! My name is Gee and I just turned 52. I bought my first fix and flip property last month. I am the first to admit that I suffer from an extreme case of analysis by paralysis! If it wasn't for my amazing husband to provide me with the money and tell me to just go buy something already. I probably would still be listening to podcasts and registering for Masterclasses ALL DAY , EVERY DAY! I recently purchased the BRRR book by David Greene and How to Invest In Real Estate by Brandon and Josh and realized they were talking to me about being a LURKER on this site. So today is the day , I am changing! I am going to stop lurking and start participating! I am struggling a bit with networking. I am naturally a loner so this is definitely getting me out of my comfort zone. I purchased the Intention Journal and got placed in a Mastermind group, however, when I reached out to the other members I heard CRICKETS! No email response from anyone. I am based in the Mobile, Alabama area and attended a REI virtual meeting and all they did was try to sell a 6K coaching course! So I am excited to get immersed in the Bigger Pockets community to connect and learn with other like-minded people who will inspire me to be a doer and not an observer! If you are in the Mobile , AL area PLEASE keep me posted of any networking events / groups I can join.

Hey Gee!

Congratulations on taking that leap. I am also in the beginning stages of my investing journey and local to Mobile, AL. As far as I have seen our options for local REI meet ups is slim. There is a P.I.G. (Professional Investors Guild) meeting monthly here in Mobile if you want to try that. I attended one meeting about a month ago and there was some solid information. Seems to be geared towards wholesaling and general off-market lead generation. I will send you a connection request as it would be great to get with other Mobile investors and start a free local meet up!

0 Votes

Mobile, Alabama

Quote from @Steve Vaughan:

@Luke Ostergaard. I think you'd be fine with 1 checking and 1 savings acct for your rentals.

Ask about a DBA at your current bank/CU. Then renters could make rent and deposits payable to something besides your personal name. I have never been paid personally by a renter.

I self managed 35 rentals for 20 years. No way each little house gets it's own acct.

I do hold my commercial multis in separate LLCs which each had their own accts of course. Different banks, different colored checkbooks. Not too difficult to manage at all.

This is why this community is so powerful. I have never heard of a DBA but I just did some initial research. I assume this helps organize bookkeeping come tax time? Thanks for the recommendation!

0 Votes

Mobile, Alabama

Quote from @Jamie Banks:

I highly recommend using Baselane. I use it to manage my properties, including a house hack which I also run through my business account on Baselane. I have a main operating account that pays all of my bills and mortgages on the properties. However in Baselane you can create a tag for expense type and which property it is for. I have separate accounts for security deposits on my units, reserve accounts, etc. that are all virtual accounts but are directly linked to my main operating account.

Thank you for the recommendation I will have to check the software out. That is one of my next big decisions (choosing PM software) as I plan on self managing in the beginning!

0 Votes

Mobile, Alabama

Quote from @Garrett Christensen:

Quote from @Luke Ostergaard:

Quote from @Garrett Christensen:

I like to have a separate checking account for each property, it makes things so much more simple from a bookkeeping standpoint. With that said, don't have too much cash just sitting in there. I keep about 2 months' reserves in the checking/savings accounts and then put the rest of the cash as it grows in a high-yield savings account such as Wealthfront. The APYs are so high right now, I've made hundreds of dollars in interest.

That makes sense! Just to confirm, you like to have a separate checking account for each property and one savings account for several properties to hold deposits and reserves?

Sorry, separate savings and checkings account for each property. Most banks will make you have a savings account in order to have a checking account. I almost never use that savings account. The savings accounts I use are the high-yield ones. It's important to keep all funds separate, especially when required by law. AL doesn't require that to my knowledge, but it's still best practice.

Gotcha, that makes sense to me, Those HYSA have been sweet lately. I've seen to rate increases in my account in the last three months.

0 Votes

Mobile, Alabama

Quote from @Garrett Christensen:

That makes sense! Just to confirm, you like to have a separate checking account for each property and one savings account for several properties to hold deposits and reserves?

0 Votes

Mobile, Alabama

I have seen several different opinions on this matter but I wanted to get some up to date recommendations. I am working on acquiring and moving into my first househack (2-4 unit property) sometime within the next 3 months. At that time, I will also rent out my current primary residence (SFH). I am looking for advice on the most efficient way to set up my financial accounts as a new investor.

My plan was to open up a separate checking and savings account to manage income and expenses for the SFH with the following breakdown:
- Checking: income and expenses
- Savings: to hold security deposit and reserves

Should I also manage the income/expenses of the 2-4 unit property through this new account? Or would it be best to manage the househack through my personal account as I will still be living in one of the units? Thanks in advance for the advice!

2 Votes

Mobile, Alabama

All Forum Posts by: Luke Ostergaard

Luke Ostergaard has started 3 posts and replied 17 times.

Post: Medium Term Rental Payment and Leasing

Post: Better Late Than Never!

Post: Checking/Savings Account for Rental Property

Post: Checking/Savings Account for Rental Property

Post: Checking/Savings Account for Rental Property

Post: Checking/Savings Account for Rental Property

Post: Checking/Savings Account for Rental Property