Likewise, your annual or quarterly or whatever property tax payment is expensed when paid, if you're on the the cash basis (which most people are) but you've already counted that in the reserves.Here is what your accounting software probably shows in the month that you paid the property taxes.Rental Income - $1000.00Expenses:Insurance:               30.00Property Mgmt:   100.00Mortgage Int:        350.00Property Tax:        700.00   Total Expenses:    1180.00Net Loss                   180.00So what you want to do is dump this report into excel in order to reconcile it back to your cash flow.Start with your Net Loss Number and then make adjustments until you reach your cash flow:Net Loss:        180.00Add Expenses Paid from Reserves:Property Taxes:  700.00Subtract Other Cash PaymentsMortgage Principal: $150.00Amount transferred to reserves:  $80.00Net Cash Flow:  $290.00Cash Flow is a completely separate calculation than Profit and Loss. 

I also have a small 401k that I am trying to figure out how to use whether it means closing it out and taking the hit or finding a way to transfer it into a Roth self directed.As I said I am really grateful that Bigger Pockets is here and have just been diving in the last few weeks since discovering their Youtube channel.Thanks Ya'll!

I’ve seen some bigger pockets webinars and read some books.

My suggestion is to call some of the bigger brokers in the area and ask them who in there office works with investors.

Clearly you need to listen to more of the latest Bigger Pockets podcast, Brendon and David answer your question in details. 

Austin the bigger thing to do here Is estate planning.. this is a gold mine..

Hello Bigger Pockets community!

So glad you've already plugged into the Bigger Pockets podcast - that was a huge source of education for me when I first started.If you haven't already, I would recommend finding a real estate agent that you trust, and also start talking to lenders (banks, mortgage brokers, credit unions, etc.)

@Skyler ChaneyWelcome to Bigger Pockets.

Why is it a problem if floor size is bigger than lot size as with the case of a 2-story building?