New Member from San Diego

10 Replies

Hi All, 

New member here from San Diego and I just closed on my first rental property. It's two detached units. Great info on this site thus far!

Thank you @Stephen Akindona 

One question I had for you investors is what P&Ps do you use to keep track of all your repairs and reciepts for tax time deductions?  

Hey Ryan,

For starters, if you are good with Excel you can build a simple spreadsheet to track everything.  Just put down the date, the amount, method of payment, and a brief explanation.  You can list the address also or simply have a different tab for each property.  If you have a separate business checking account you can staple all your receipts to the monthly statement and file it in a container in your garage (it's not very 'green' but it works and keeps everything in order should you ever get audited).

This doesn't have to be complicated, but for some reason a lot of people seem to insist on it.  See you around BP and SD!

Vincent

Welcome @Ryan F. and congratulations on your recent purchase.

Originally posted by @Account Closed :

Hey Ryan,

For starters, if you are good with Excel you can build a simple spreadsheet to track everything.  Just put down the date, the amount, method of payment, and a brief explanation.  You can list the address also or simply have a different tab for each property.  If you have a separate business checking account you can staple all your receipts to the monthly statement and file it in a container in your garage (it's not very 'green' but it works and keeps everything in order should you ever get audited).

This doesn't have to be complicated, but for some reason a lot of people seem to insist on it.  See you around BP and SD!

Vincent

 This is what I have been doing lol. I was looking at software like https://www.concur.com/ to help keep me on track and not have to store all these reciepts... 

Originally posted by @Ali Boone :

Congrats! What kind of properties are they...like fixer-uppers or good-to-go...returns?

 Hi @Ali Boone, 

They are what I call quick equity returns. These are my first two rentals so I am still learning but they have ALOT of deferred maintenance and need a great deal of TLC. They are both currently rented out and have a nice cash flow each month, but I think with the BRRR method I'll be able to buy two more in six months or so once they have seasoned a bit and I can pull out some equity.

Like I said I have no idea what they will appraise for once I 'fix' them up, but I plan on buying properties with excellent bones ie (electrical split between units (200 Amps), New plumbing (ABS) and new roofs and foundations (crawl space) I like that for ease of repairs. 

So that's my plan thus far. Will keep you all posted as things move along. 

On a side note, what do you all do for legal protection? I was told two units are not really worth an LLC, but rather up my personal umbrella until I get 4 units then switch to a commercial umbrella policy... thoughts?

Originally posted by @Ali Boone :

Sounds like you are on top of it! Congrats on the properties and definitely keep us posted.

For liability, here is my opinions on it and definitely read through the comments. They are quite thorough! Maybe something in here will help.

http://www.biggerpockets.com/renewsblog/2013/08/17...

 Great info thanks Ali!

@Ryan F.

Welcome to Bigger Pockets. BP is full of resources. You will find resources here from blogs to pod casts and forums. You can also send messages to members. This is one of my favorite features of Bigger Pockets especially for asking specific questions.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Join the Largest Real Estate Investing Community

Basic membership is free, forever.