All Forum Posts by: Maggie L.

Hi all,

looking for advise/perspective on software options for bookkeeping.  

A bit about my situation - buy and hold investor with multiple LLCs as well as a couple properties in my personal name.  Have been keeping track in a spreadsheet but my partner and I just bought our first duplex together (house hacking) so I'm now needing something that he can interact with (enter bill payments, etc) since he (understandably) is not interested in my cobbled together system.  I'd like something that would save me time (snap picture of receipt, automatically categorize expense, etc) and is easy enough for my partner to use (we don't share a computer so desktop only isn't an option) as well as give information to my accountant at the end of the year. 

Currently top three contenders are Quicken, Quickbooks (online), and Xero

My CPA works mostly in Quickbooks, but has experience with Xero and Quicken.  From a troubleshooting perspective he can do the most in Quickbooks, then Xero, Quicken the least.

Top priorities/concerns:

1) Avoid risk of Comingling while remaining economical
This is the big reason why I don't think Quickbooks online makes sense for my situation.  I have multiple LLCs, and I don't want to risk losing legal protections because something wasn't entered correctly or pay >$100 a month for multiple versions of QBO. Since I have been adding about a property a year I foresee QBO quickly becoming unreasonably expensive to follow best practices.

2) Useful user friendly reports
I have a couple rentals with my father who has physical conditions that limit his ability to use a computer, and this is only going to get worse with time.  I'd like something that can create useful printable reports for him to easily understand what's going on.

3) Ability to access from multiple devices

I'd like to be able to save time with mobile access e.g. receipt entry, and ideally multiple computers e.g.my partner can enter the sewer bill he paid via his laptop rather than me being responsible for all of the bookkeeping.

4) Quick system that works well for rentals

A frequent complaint I've heard about QB is its design.  It seems designed more for accountants (this is what I've heard from accountants), and a lot of the bells and whistles sound like they just get in the way for a simple situation like buy and hold rentals.  If this system takes more time than me entering things into a spreadsheet on my laptop once I've learned the basics then it's costing me money without saving me time.

5) Security

In a lot of ways this is the top priority.  To be more efficient I'm putting a lot of information (CC, EIN, Bank Account) into this system and want to know my data is secure.

@Frank Trigoso let's chat! PM me some times that work for you.

Welcome to BP! Glad to hear you've gotten started with a good broker - as a fellow agent I really appreciate the importance - and you've got lots of enthusiasm.  There's a lot of great information here on BP, and I'd encourage you to get involved in local RE groups.  We're very lucky to have some great options in the St Louis area - feel free to PM me if you'd like to discuss more.  One thing I'd recommend is to pick an area to start; I learned A LOT with my first duplex and really solidified my desire to focus on buy-and-hold investing.  As many great resources as there are out there, its easy to hold off because you're trying to decide between options.  Glad to hear you plan to start with a multi-family rental; are you planning to live in one of the units or rent them all out?

I got my license down here; don't really know the Minnesota market despite all of my family living there.  Actually came here for a PhD program (WashU) but ran into chronic medical problems and sort of fell into RE as a result.

@Robert Mason glad to hear! Personally, I picked up a couple of investment properties then decided to get my license.  It keeps me from taking on too many projects (no new property until current is fixed up and cash flowing is one of my rules) but still feeds my desire to look at properties and gives me access to lots of data. But, it sounds like your goals are slightly different, so it may not make sense for you.  Are you looking to invest in Chanhassen - I'm from St Cloud originally!

The first question is tricky to answer - there's helpful information e.g. MLS, supra, etc that require a license (yes there are exceptions, but that's diving into minutiae that doesn't seem relevant here) for you to access. That said, it's fairly easy to get an agent to help you out e.g. auto search, showings if you're going to be a high frequency buyer (full disclosure, I'm an investor-friendly agent so I do this for investors all of the time). A lot of it probably comes down to how much do you care about being beholden to another person's schedule, and how much information do you want/need - agents get access to more than their clients. If you do get your license there are many brokers that are happy to hold a license for personal deals. Just be sure to ask for details about fees (E & O, desk) and requirements (do you need to have NAR membership, what portion of your commission do they take, how much can you negotiate with commission to reduce sales price) when you're comparing brokerages.

@Michael Oldani welcome to BP! There are lots of opportunities for someone who can put some sweat equity into their properties.  I'd also second @Chris Dawson's recommendation to check out investing clubs where you plan to invest.  They're great opportunities to network with other investors as well as get perspective on the market.

Welcome @David Orrick.  Where are you looking to invest?  Multi-families can be great for cash flow, and is what I do myself along with several of my clients (investor-friendly real estate agent in St Louis) but it's a much more long term approach than flipping.  

You've got some great guides for important things like keyword alerts; I'd also encourage you to check out the podcasts (great inspiration, especially while working on your properties) as well as connecting with local RE groups (whether via BP or other sites like Meetup) if you haven't already.  

Welcome from an investor (and investor friendly agent) who focuses on the other side of the state ;)
KC has opportunities, but proximity to my rentals had made my life A LOT easier on a number of occasions.

Depending on where you were looking there are neighborhoods in St Louis that have appreciation potential, though these are generally transitioning/gentrifying neighborhoods so some people would not qualify them as stable. 

One of the things I like about working in St Louis is there are neighborhoods for just about every investment style.  Personally I go for multi families in transitioning neighborhoods so I can get a little appreciation as a bonus with the cash flow, but my buy & hold clients (as @Max Householder said I'm an investor-friendly agent) have a variety of criteria they use for selecting size (single or multi), condition (turnkey to gut), and geography (South City, North City, North County, etc).

 I'd be happy to show you a few properties this weekend if you'd like.  PM me and we can figure something out.