All Forum Posts by: Spencer R.

Hi all, 

I’ve formed a good relationship with my handyman and was thinking I want to partner up with him on a forward basis. He knows all about building/repairs etc (which I’m really bad at) and I can run the rest of the operations. 

The problem is he doesn’t have good credit/financial position so I’m trying to think of a structure to overcome that. I want him to be able to build equity in the property too so our incentives are in the same place. 

Has anyone had experience with this and how did it work? I’m open to really any and all ideas. 

@Spencer R. To clarify* tenant is saying that he/she is not receiving any payment from the plant carer for rent

How would you handle this situation as a landlord?

Subletting is not permitted within the lease. Tenant is out of town for 1.5 months and claims that the new person occupying the unit while they are away is their “plant watcher” who is staying and caring for his/her plants. The tenant claims there is no payment being made for rent.

@Michael Plaks good analogy, but I would argue I only have a bicycle at this time. Eventually I will hope to have a complicated car down the road.

Sounds like starting the relationship earlier with an accountant is better though, so I will plan to do that, even if my situation is relatively simple at this point.

Hi,

Beginner landlord here...

I plan to have one, 2-4 unit multi-family home by this time next year. I imagine I will be itemizing my returns.

My question is should I plan to find a personal accountant, or would some online tax preparation software suffice?

If software, which one(s) would you say is best for a landlord.

If accountant, what is a very rough ballpark of the cost/fee structure to pay a personal accountant.

I imagine as I continue to acquire more properties I will eventually switch to an accountant, but it may not be necessary at this time?

Thanks in advance

@James Wise thanks that’s helpful, what does $amp mean?

I am beginning to look to purchase my first multi family rental property and have lots of concerns that I may not know enough about the conditions of homes, quality of appliances etc. Being an investment analyst I am not too worried about the numbers and finances playing out, but instead making a good decision on buying the right home.

For example, I am 24 have never owned a home and am nervous for my lack of knowledge about things like quality of the roofing, quality of the hot water heater, the HVAC system, insulation, mold(?) etc etc. Those are just a few of the many aspects of a home but I think you can get the idea.

I am looking to hear from you all on things that I could do to better educate and prepare myself on going into a home and making sure I can make a more confident, informed decision to purchase a home as a newbie. I want to buy on the more conservative side and closer to a turnkey as possible (I understand ROI is not as good).

Thanks in advance!

thank you @Mark S. .  Are you positive that their 4% match will be pre tax regardless, even if I choose to do Roth 301k? I was not aware of this

@George Blower - I should have clarified.. my company matches 50 cents on the dollar up to my 8% (so they do 4% total).  I know everyone recommends contributing at least as much to get the max match from your company, but I was contemplating if I should still contribute that much given my goals and what I am hoping my situation will be by the time I am able to access those funds.

Hi everyone,

Just as a quick backdrop: I am a 23 year old working a full time office job and contributing 8% (4% traditional, 4% Roth) to my 401k, and getting 4% matched by my company.

What I am wondering is if I should be contributing to my 401k when I am trying to build up as much capital as I possibly can to be able to buy my first rental property ASAP.  I appreciate the tax advantages of 401k's, but I feel as though it doesn't make sense for my goals.  I want to get into properties as soon as possible (1st property in next 1-2 years), and switch from my office job to rental properties in my mid 30s.  

If all goes as planned based on the power of compounding with rental properties, the 401k and Roth IRA that I'm building up now, wouldn't be of much value to me by the time I'm 65 because my rental properties should be cash flowing enough for me. So all that my 8% of contributions are doing right now are delaying the capital I need to get going with purchasing my first rental properties.

So I was wondering.. what do you all recommend.. should I just stick with a traditional IRA, should I do a Roth IRA because I can withdraw contributions at no penalty to put into rental properties at some point down the road, or should I not contribute to any kind of IRA?

Thank you everyone in advance for the insight!