All Forum Posts by: Vicki X.

 PS: as of today, no single software can do it all. 

Azibo: listing and maintenance/work order are missing but will become available soon
Innago: offers basic manual expense tracking. accounting is missing.  I haven't tried their e-signature
Hemlane: very similar to innago but they offer a bit more PM services

@Dominick JohnsonHow big is your portfolio?  You may want to call a few accountants to get a quote. It doesn't matter where they are located. 
Bigger Pockets has a CPA page: https://www.biggerpockets.com/blog/tax-partners

You can check out Brandon Hall's firm. They have a good reputation. For full disclosure, they've been working together with Azibo in building our rental accounting software. You can also learn about his practice through the Tax Smart Real Estate Investors podcast, and hacking real estate podcast.

Hope it helps.

Here are the major considerations in evaluating different markets:

• Your budget: are you looking to buy under $200K, $200-300K, $300-500K or higher? It can help you create a short list

• Population growth, employment growth, wage growth, composition of business types are the most important factors in the health of the market. There are many analysis, charts out there. Specifically. places where the millennials are attracted to are interesting as they are becoming the biggest renter and homebuyer group

  (Note: Be careful with 'historical' data. The top growing markets in the last 2 years are unlikely the most sound choices. Good examples are Austin and Phoenix. Try to add the futuristic lenses into your analysis whenever you can. In the ideal case, there be a "new California" emerging somewhere in the next 10 years. But to be frank, CA's trajectory is impossible to replicate as working remote has become more prevalent, companies more “decentralized”, and more people think about not just professions, but also lifestyles these days).

• Are you able to find trustworthy realtors/PMs or even service providers? Do not get into a market before you know whom to work with. Many investors interview many to find the best one. In my case, I started in the Houston area as my friend had very good recommendations for me. So use your network to get more ideas!

• Run the numbers to understand the cash flow, and pay attention to the major cost such as the effective property tax rates. It typically range from 0.5%-2%+

• Rental regulations as some States are more friendly to renters while some more friendly to investors

• Distance to you. If you find a good area 2-5 hours drive from you, it’ll be easier to meet your team and check out the properties in person

• Certain hazards or costs that you want to avoid. Drought, flooding, snowstorms, tornados, just to name a few

  
  

States that are popular these days: FL, GA, NC, TN, OH, TX, IN, AL

Some States around you are good markets too: NC, GA, FL.  

Here are the major considerations in evaluating different markets:

• Your budget: are you looking to buy under $200K, $200-300K, $300-500K or higher? It can help you create a short list

• Population growth, employment growth, wage growth, composition of business types are the most important factors in the health of the market. There are many analysis, charts out there. Specifically. places where the millennials are attracted to are interesting as they are becoming the biggest renter and homebuyer group

  (Note: Be careful with 'historical' data. The top growing markets in the last 2 years are unlikely the most sound choices. Good examples are Austin and Phoenix. Try to add the futuristic lenses into your analysis whenever you can. In the ideal case, there be a "new California" emerging somewhere in the next 10 years. But to be frank, CA's trajectory is impossible to replicate as working remote has become more prevalent, companies more “decentralized”, and more people think about not just professions, but also lifestyles these days).

• Are you able to find trustworthy realtors/PMs or even service providers? Do not get into a market before you know whom to work with. Many investors interview many to find the best one. In my case, I started in the Houston area as my friend had very good recommendations for me. So use your network to get more ideas!

• Run the numbers to understand the cash flow, and pay attention to the major cost such as the effective property tax rates. It typically range from 0.5%-2%+

• Rental regulations as some States are more friendly to renters while some more friendly to investors

• Distance to you. If you find a good area 2-5 hours drive from you, it’ll be easier to meet your team and check out the properties in person

• Certain hazards or costs that you want to avoid. Drought, flooding, snowstorms, tornados, just to name a few

Hi Emily, I'd say Azibo, Stessa, REIhub are good rental accounting options that offer income/expense tracking, financial reports and tax reports (Schedule E). Azibo and Stessa offer business bank accounts. Azibo also providers many property management features. REIHub is purely accounting. Does any other rental management features than accounting matter for you? Cost wise, Azibo is free. Stessa has the free and premium versions. REIHub is paid. Azibo and REIHub support double entry accounting. Stessa doesn’t as of today.

Some investors and many CPAs use Quickbooks too. But it’s not as friendly as it’s not designed for real estate and could quickly get pricy.

Hope it helps! I’ve tested all these tools and am happy to share more details.

I agree with many answers above that the best is to validate the idea with multiple parties including a CPA, a lender and an attorney.  Since you are just starting, you may want to use a simple structure.
There are also plenty of investors who invest without LLCs, while using an umbrella insurance to mitigate the risks.
Also, you mostly learn through experience in real estate.  Be willing to get started without every answer is a good approach.

@Andre Joseph If you are looking for an accounting solution only for rentals, I also recommend a rental accounting software, instead of Quickbooks. 

How big is your portfolio? If you just get started, I would recommend a simple and low cost (sometimes free) rental accounting tool: Azibo, Stessa, REIHub.  They all offer income/expense tracking, financial reports and tax reports (Schedule E).
Azibo and Stessa offer business bank accounts. Azibo also providers many property management features. REIHub is purely accounting. Think about the features that matter most for you and decide.
Cost wise, Azibo is free. Stessa has the free and premium versions. REIHub is paid.
Azibo and REIHub support double entry accounting. Stessa doesn’t as of today. Hope it helps. Happy to share more info.

I'm curious, how big is the difference between the MTR and STR returns in your case?

You can search for lists online. Roofstock, BP often post articles about it. Then you'll want to narrow down and do your own research.

If I were you, I'd focus on landlord friendly States. IN, FL, NC, AL, TX, just to name a few. 

It's a trade off between risk mitigation vs. cost (monetary and complexity). The benefit of 3LLCs is probably marginal, assuming the property values of those SFRs aren't very high.  

On house hacking -- do your parents plan to sell? :D