All Forum Posts by: Michael Cummins

This is one of the options I was considering as well.  Probably simplest...

 Thanks for that clarification.  I've heard at least some of this before, but I'm paranoid and don't necessarily take the best notes of what I bought etc, so the physical receipt is a nice tangible record if I ever need to justify an expense.  And in most cases, reading a receipt and knowing which property/my management company it is tied to (done automatically by separate accounts linking to my software), even if I don't do a very good job documenting, I have enough to go back and justify almost any expense.  

I want simple - quick picture as soon as I leave the store, so I don't have to track expenses.  I need to experiment with the RH option... it takes a few clicks to get to the option, but supposedly it will try to reconcile the bank pulled transactions and receipts for me, so if it does do that, would be nice.

This is an old thread, but curious if many of you who started RentalHero (RH) back then are still using it?  I've been using it a few years as well and mostly like it for my smaller portfolio across multiple entities and states.  

The thing I'm trying to do better with going into the new year is handling receipts.  I have never used that feature in RH, are any of you using that?  I'm thinking that I need to go to an electronic receipt tracking system, I've been doing it old school all these years - dump them on my desk, some month down the road go through them all and file them to folders for reach property, start a new folder each year.  Not bad, but a lot of work and hard to find a specific expense if I can't remember it when I'm categorizing the expense a week later in RH or something.  

Anyway, what are you guys that use RH doing for receipt tracking?  

Lots of people use LLC for STR. I have my other one in an LLC, as in PA it's pretty easy and cheap to maintain, plus I don't need to pay for an on state registered agent since I live here. It's also the one property I have co-owners with, so the LLC makes that cleaner.

LLCs definitely do add significant additional personal asset protection over just insurance, but they're not bulletproof. It's not terribly difficult to pierce the corporate veil, if you don't operate in a very consistent professional and totally separated from your personal finances manner. If you do all that, it's a big stretch to say it's easy to pierce the veil and that it doesn't offer any real protections, but it's also a big stretch to believe the LLC will definitely protect you.

For property management, I personally would never do that outside of the protection of an LLC. Most liability will fall there first. That's why I have a separate LLC just to manage the properties I own in different LLCs, one more layer of liability and asset separation.

But this kind of gets at my main distinction in the question compared to other posts I've read here about the topic... If you're hiring out the management to a large professional hosting company, who are responsible for the maintenance on the property, wouldn't that place the majority of liability claims against them rather than the property owner? Then you have your own good insurance on top of that. Certainly not bulletproof, but seems like this would cover the vast majority of potential liability issues. 

Or am I missing something?

I know there have been many posts about this, but wasn't able to find this specific part addressed yet... 

If I'm buying an STR, and having it professionally managed, would the benefits of an LLC over good insurance be significant? I think if I was self managing, I would default to an LLC, but for this passive/hands off setup, is the protection that much more substantial?

I use LLCs for all my LTRs, and have a separate LLC that does the management for those properties, to separate out as much as I can for asset protection. But in the case of having it fully managed by others, with a STR policy that requires $1M liability anyway, plus the management company's insurance, wouldn't most liability fall to them first as they're contracted to keep the property in suitable condition, then I'd still have pretty hefty coverage if something went beyond that?

Just trying to see if its worth the hassle and costs of a NC LLC. My PA LLCs are much cheaper and easier to maintain, plus not needing an out of state registered agent, etc.

Thanks all!

I have a few I'm looking to sell in Pgh - if you want to chat, msg me.  

Thanks, I looked briefly at the features, and it looks very promising.  How have I never heard of this?  Free tenant screenings?  That seems too good to be true... 

I'd love to be mobile and track my expenses essentially in real time.  I assume it loads info from your bank/CC accounts?  Would be great to be able to categorize right away and avoid the hassles I have now with trying to remember what an expense was that I forgot to file appropriately and now its been 9 months...  I suppose that's more an issue with my own self discipline, but still, a simple app would def help.  

Thanks again, will def dig more into this and see what its all about. I currently use Cozy for rent payments, but the right software suite would convince me to go through the hassle of switching all my tenants over.

Hey guys,

I have been using a spreadsheet that I have customized to do what I need it to since I started buy and hold investing.  Now 10 in, I'm finding that a lot more cumbersome than I used to, and think its time for some sort of accounting software.  

I'm a one man band, other than hiring people for some specific tasks, but all my accounting is done by me other than the actual tax filing.  I don't plan on that changing, so I don't need overly robust software.  I find quickbooks and many of the other software solutions to be a bit overbearing to work with, as they're made more for a large group of people interacting with it.  I want simple.  

I think the main things I'm looking for is the ability to import my credit card and bank account info, and then categorize to each property and sub-expense category, quickly and easily.  An app for my Android phone would be a huge plus, but not required.  

I've a decent amount about Stessa and UpTop lately, any experience with either of those? Do they fit what I'm looking for?  I know UpTop is just rolling out their accounting stuff right about now, so might not be much experience there... Any others you like that are simple, preferably free (or at least very inexpensive), and secure enough to trust with your banking info?  

Thanks.  Taxes are becoming a bear to prepare for, trying to avoid that headache for next year if possible.  

Mike

Bumping this older thread to ask a related question...

In terms of asset separation through separate LLCs, is there any negative implications to putting multiple properties onto one scheduled property policy, when the properties are all owned by separate LLCs? Basically, I am in the process of restructuring from working as a sole proprietor in my own name (I know, I should have done this sooner), to having a holding LLC that I own, which then owns an LLC under it that owns each individual property. The holding LLC also owns a management LLC which manages all the other properties, but keeps all the banking, etc simple by having it all in one place, and further separates the management from the individual properties.

My broker said she can set up a policy in the name of the Holding LLC (since it owns all the properties through 2 degrees of separation) on a single scheduled policy.  I'm just wondering if this in any way could be used to pierce the corporate veil of the separate entities in a lawsuit, like would be the case if all those properties shared a bank account in the Holding LLC - comingling of funds.  

I haven't gotten quotes yet on price difference between this and each property holding its own policy, but my broker said as you start getting to larger numbers, it usually ends up better that way.  I would also hold a general liability policy on the management company for additional liability claims, etc.  

Anyone know for sure if this could be a risk to my asset protection plan?  

Thanks!