All Forum Posts by: Michael Biener

Hi Matt, 

Thanks for the advice.

I went with the separate account solely for the purpose of tracking the income and expenses easier. 

The thought process was that any  action on that account is somehow related to the property and would be easier to sort through at the end of the year than having to dig through my personal account with all the random transactions over the year. 

I will definitely need to find a good  accountant. I know that some things will need to be split up

between the schedule A and the E since it is an owner occupied property. Although who knows if congress actually somehow changes taxes this year...

Frank,

Sounds like you are where i want to be in 30 years (or 10), except the whole NY thing i was born and raised on Long island, no way i could afford to invest there...

Simon,

Thanks for the advice, that was the original plan to pay my rent into the account just like it was a rent from a tenant then pay the mortgage from that account, but just wanted to make sure that was the right approach. Although now that brings up another question.

How about the utilities for the property? 

Water/sewer is one bill for the all 3 units - i will pay that from the operating account.

Electric/Gas is separate for each unit. Tenants pay their own electric/gas bill so i assume i should pay my own electric/gas bill for the unit i will be living in from my personal account and not the operating account?

Hi Calvin,

Not quite Rhode Island, but i am a newbie in NH who just purchased my first property a few weeks ago.

Bigger Pockets has definitely been motivating over the last 6 months or so to get me here. 

Now i just hope i made a wise first choice. The market this year was very high priced and nothing around here comes even remotely close to profit margins i hear some people talk about in other parts of the country, at least not at MLS/realtor listed prices.

Anyway keep focuesed and good luck in getting your first property.

Hi all, i have been lurking around bigger pockets for the last 6 months or so. This site is very helpful, especially for wishful newbies like myself. I finally closed on my first investment property a few weeks ago. It is a 3 family property i purchased using a VA loan. I will be living in one unit and renting the other two.

I have already created a new checking account for the income/expenses of the rental property. Additionally there is separate savings account for tenants security deposits (required in NH).

The two incoming rents each month are about 90% of the mortgage and will be deposited into the rental checking account.  Additionally, i plan to "pay" rent for my unit to myself to cover the rest of the mortgage and provide for maintenance/repair funds.

This leads me to my question, should i deposit my "rent" into the rental property account and then pay the mortgage from that account? or should i transfer the monthly tenant rents from the renal property account to my personal account and pay the mortgage from my personal account?

If it was entirely a rental property obviously everything would be directly into and out of the rental account, but where i will be living there i don't know the best way to do it for accounting/tax purposes?

I appreciate any advice.

Thanks