All Forum Posts by: Shawn L.

@Jake Thompson

The only other accounting software I've been exposed to are the ones that are used by the company I work for.  These are at a much different level since I work for a large corporation.  Therefore I cannot compare QB to its competition.  What I can tell you is that I really enjoy using QB.  Like anything there is a learning curve but once you're set up, you can memorize transactions, reports etc.  It makes bookkeeping a breeze and allows you to run financial reports in no time.

Note - I have the Pro desktop version and I do not have any experience with the online version.  I would imagine that the interface is the same.

Hope this helps,

Shawn

@Jesse Vipond

You've probably already met with your CPA and had all your questions answered but I'll share my experience.

I have the desktop version of QB Pro 2014 for Mac.  I think they've done a good job giving it a typical Mac feel.  The only issue I have ever had with it was that when I was learning the system, there were a couple of transactions I entered but forgot to assign a class.  I did not notice this until I ran a P&L with the "Class" column showing and saw there were 2 or 3 transactions with no class assigned. I went in to the transactions and assigned the appropriate classes, re-ran the P&L and they still did not show a class. I played around with it for a while and could never get the appropriate class to show up on the reports. I chalked it up to my own stupidity and now make sure I look over every transaction a few times before saving.

I bought Managing Your Properties With Quickbooks by Renee Daggett of Admin Books when I was setting up.  It's just shy of 120 pages, is fairly detailed and comes with a sample QB file which includes a Chart of Accounts.  It runs you through typical transactions which is very helpful when starting out.  I have also heard great things about Nancy Neville's book and I'm sure you can't go wrong either way.

Shawn

Roughly 99% of my time here is spent on an iPad.  How do I "hover" over someone's name in order to connect and/or message them on an iPad or similar device?

@Tony Santos  First off there are a couple of funky things going on with your spreadsheet.  Where you calculate your Operating Expenses at 57% is based on your Net Rents (i.e. 30,214/53,005=0.57), whereas your summation of Operating Expenses of $30,214 also includes your vacancy loss.  Essentially you’re double dipping on your vacancy loss in the % column.  Not the end of the world but it does skew the results a bit.

Additionally Capex is not an operating expense; I separate these two even when just analyzing a property in order to avoid confusion.

I typically include tenant procurement costs in my analyses, usually based on 1 year average tenancy as a worst case scenario.  Typical procurement fee is 1 month rent.

Your insurance is probably low; I’ve had quotes on 3-unit properties in the range of $2500/year, with $1M liability, tenant relocation and lost revenue coverage.

Other than that I agree with @Mike Beaudry regarding the various utilities and other expenses.

Hi All,

As I mentioned in my introduction posted here, I've been scouring the MLS looking for cash flowing multi family (3-6 unit) properties in Massachusetts. Im focusing on Framingham, Marlborough and Worcester as my target communities. I've looked a little bit in other surrounding towns as well.

I know that this isn't widely considered a "cash flow" market but I was dumbfounded the first time I read about the 2% rule. After reading that I pretty much froze up and spent a lot of time trying to find listings that come anywhere close to it. What I found is that those deals simply do not exist on the MLS anywhere close to my target area. I'm not saying they're not out there but with the market as hot as it is here, I can only assume they're being snapped up as pocket listings.

I'm curious what channels other local investors are using to find cash flowing buy and hold deals?  Based on what I've read here I know that attending a local club would be a step in the right direction.  Actually a little over a year ago the Black Diamond Meetup was suggested to me and I didn't really give it much thought until I started reading here.

Looking forward to the discussions.

Side note - I initially intended to put together a much more quantitative post, but after I got to about two pages worth of text, I realized that nobody was going to read past the first paragraph or two.

@Ned Carey Thanks for the welcome.  I have found the Blogs to be very helpful as well.

@Matt Lefebvre I'll be posting about my search and some of the issues that many local investors are likely very familiar with.

@Jim Sestito Definitely know my way around a toolbox, but I'm looking to step back from doing the work myself so I don't burn myself out.  Swinging a hammer was great in my teens and early 20's but now woodworking is just a hobby that I'd like to keep as a hobby.  That said, you are correct that the knowledge is valuable because I know what is involved when something does need to get done.

@Mike Hurney The property was on the MLS. I looked at about 20 properties, put in offers on 3 and got this one. I put up a pretty hefty downpayment to get the cashflow I was looking for.

Hi fellow BP'ers!

I've lurked around the site for quite a while now, joined a few weeks back and am just now finally getting around to introducing myself.  I've also been listening to the BP Podcasts every day on my commute, beginning with #1 and i'm up to I believe #36 right now.

A little bit about me - I grew up working for a local homebuilder, that got me through High School and College.  After graduating with a degree in Construction Management, I went to work for a large international construction firm.  Within 6 months I was on a plane to Guam, way out in the Western Pacific.  I spent probably the best 13 months of my life (thus far) there, then a couple years in the Washington DC area, and finally a year in Port au Prince Haiti.  After that I jumped around a bit between home and Baltimore, MD.  I've been back in Massachusetts about 2 years now and am working as an Estimator with the company I have worked with since graduating from college.

Growing up I always knew that I would invest in real estate. While I was in Haiti I started watching the MLS. After getting back home over a year later, I looked at a ton of multi families, and finally ended up buying a 2-unit property in September of 2014. It was the 3rd property that I put an offer in on. I am actively seeking another multifamily property but I'm having a real hard time finding properties that meet my criteria for cash flow in anything but very rough neighborhoods. I'll be posting about those struggles soon.

Really looking forward to being part of the community here!

Shawn