However, prepaid rent expense, interest and insurance are deducted only for the tax year they pertain to.DepreciationDepreciable basis of a property is undepreciated basis minus land value:Purchase price + major remodeling + improvements – land value – accumulated depreciation = Current basisFor this paper we will assume all properties placed in service before 1987 are fully depreciated.

The idea being that once we are ready, I can fully outsource the bookkeeping but have confidence to oversee it.It's kind of annoying (and almost a deal breaker for us) that Yardi doesn't import live bank transactions as we were used to that with Stessa, but it is forcing me to stick to consistent entry and coding things correctly.BTW, you do have the option to pass the CC/Debit Card charges onto the tenant for online payments if you like, or you can absorb them.

Will estimate closing costs @ $7,750 including pre-paids/escrows.

: The best solution I've found to reduce redundancy would be to stop using the credit card and use separate debit cards for each LLC/property.

The entry would be Credit - Rent Income Debit - Cash.Good luck!

All in price was $45k and the monthly income is $1250, even with expenses, capex, debit  cost, taxes, Andy insurance I net $600 a month for both trailers.

I knew I was going to have to pay closing costs and prepaid expenses like taxes and insurance.. but they hit me with that stupid fee on top of everything.

@Nick P.If they are done in six months you would make $4200 on a $84000 loan which is a rehab in a very difficult area and if they default it will take years to get your money back.I would lend at 10% and 5 points with 6 months prepaid interest.Also you need to understand how much money they are putting into the deal.

Tenants can pay with credit/debit cards or use direct deposit from there checking accounts.

If you spend all that money in January and the Tenant breaks their lease six months later, you will have to look for a new tenant and then refund any unused portion of the rent that was prepaid by the departing tenant.