I'm looking to build my own rental template that's very general to help me quickly run numbers on potential properties. FilePlace has some great forms... though all a bit more advanced and as far as I can see better suited for a top to bottom purchase assessment, etc.
Basically, I'm wondering what you all have on the expense side of the ledger when you figure your monthly outgo.
So on one side... rental income.
On the other for example:
-PM (If used)
-HOA (If applicable)
-Monthly maintenance expense (XX.00 per month est.)
-Misc Utilities (If any incl.)
-Pool/Yard upkeep (If applicable)
As a first time rental property investor, I'm basing a lot of my list on my experience as a renter and a homeowner, along with things I've learned here. But, I'm looking for those hidden or potentially forgettable expenses. I'm sure the pros here can run these in their head after a while. But... wondering if anyone has a written template, post they recommend or thoughts on the issue?
Hope the question made sense. Thanks!
I keep it simple @Bryan Christopher . I use the Schedule E as my template. I try and put every expense into a specific category of the SE. On a rare occasion I have an "other expense" and I create a new category as I need it but that is rare for me.
Thanks @Rob Beland
Great idea, actually. I think a mix of that and the 50% rule would give me a great way to eyeball potential properties until I get a natural feel for it. Next step is for me to find some investors who might be willing to open up their books a bit and show me their expense break-down. (In my price range/area preferably.)
Correct me if Im wrong @Brandon Hall but I believe the IRS does not like "other expenses" on a SE. I try my best not to use the extra lines but it happens. One time expenses I can 100% defend go there. Thats it. I do my best to fit every expense into the federal govts categories.
@Rob Beland You are correct, though my software allows me to provide a descriptive detail of "other expenses" on a separate sheet attached to Schedule E.
It's best to classify expenses within the given categories if at all possible.
Thanks @Brandon Hall which is why I will always advocate for hiring the best accountant you can find. I always say this...There is nothing more expensive than a cheap accountant.
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