First house hack questions

Wilkes Barre Scranton, Pennsylvania
General Real Estate Investing
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First house hack questions

Max Pfeifer
Member since 2025 · 16 posts · 10 votes

Hi everyone, I just put my first offer in on a duplex for a house hack! I am freshly 20 years old and am probably in over my head. I'm wondering if I should contact an accountant now to best understand how to track my expenses and how to do it? How do you or how did you track your expenses during a house hack and separate personal from rental? I feel it'll be hard to keep track of everything with half being personal and half being a rental. Any advice on this would be greatly appreciated! Also in that, what is the best way to track profit/loss or cash flow on rentals. Obviously i will be "losing" money while i live in the property but just want to stay on top of it and make sure everything stays where i feel comfortable. Thanks everyone!

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Michael K GallagherBusiness Member
Real Estate Agent · Columbus OH · Member since 2018 · 1k+ posts · 1k+ votes
6mo

@Max Pfeifer there are many ways to go about it, but I kept it pretty simple.  have an email address specifically for this property.  Anything you buy or get expenses wise, snap a pic and send it to that email.  Then have a google sheets in there where you have a simple spreadsheet tracker.  

I used zillow rental manager, its free, pretty simple, but limited.  

My house hack was not "profitable" either, but in reality it was the best move we ever made, and the value is going to keep compounding for years.  Fantastic job getting in early.

[email protected]614-362-2231
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  • Michael K GallagherBusiness Member
    Real Estate Agent · Columbus OH · Member since 2018 · 1k+ posts · 1k+ votes
    6mo

    @Max Pfeifer there are many ways to go about it, but I kept it pretty simple.  have an email address specifically for this property.  Anything you buy or get expenses wise, snap a pic and send it to that email.  Then have a google sheets in there where you have a simple spreadsheet tracker.  

    I used zillow rental manager, its free, pretty simple, but limited.  

    My house hack was not "profitable" either, but in reality it was the best move we ever made, and the value is going to keep compounding for years.  Fantastic job getting in early.

    [email protected]614-362-2231
    2Reply
  • Arman AhmedPro Member
    Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 911 votes
    6mo
    Quote from @Max Pfeifer:

    Hi everyone, I just put my first offer in on a duplex for a house hack! I am freshly 20 years old and am probably in over my head. I'm wondering if I should contact an accountant now to best understand how to track my expenses and how to do it? How do you or how did you track your expenses during a house hack and separate personal from rental? I feel it'll be hard to keep track of everything with half being personal and half being a rental. Any advice on this would be greatly appreciated! Also in that, what is the best way to track profit/loss or cash flow on rentals. Obviously i will be "losing" money while i live in the property but just want to stay on top of it and make sure everything stays where i feel comfortable. Thanks everyone!

    Congrats on putting in an offer, Max! At 20, diving into a house hack is a huge step and will teach you tons fast. For tracking, I’d start simple with a dedicated account for rental income and expenses, so you’re never mixing personal and property cash. QuickBooks or even a spreadsheet works if you want to keep it lean. Track everything, mortgage, utilities, repairs, and any personal contributions separately, and check in with an accountant early so you understand deductions and how to report. Even out-of-state investors in places like the Midwest do the same setup, and it makes scaling to more duplexes or small multis way smoother down the line.

    [email protected]614-418-6081
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  • Jason MalabuteBusiness Member
    Accountant · Los Angeles, CA · Member since 2016 · 2k+ posts · 898 votes
    6mo

    Yes, it would absolutely make sense to have an accountant involved now—it won’t hurt, especially in a house hack situation where only the rental portion of the property will be depreciated and expenses must be properly allocated between personal and rental use from day one. For tracking expenses and profit/loss, use QuickBooks so you can categorize income and expenses correctly and generate clean reports. To separate personal and rental activity, open a separate business bank account dedicated solely to the rental side and run all rental income and expenses through that account. Then use QuickBooks to monitor cash flow, track net income, and stay organized for tax time.

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  • Aaron ZimmermanBusiness Member
    Accountant · Chicago, IL · Member since 2018 · 2k+ posts · 1k+ votes
    6mo

    I'd recommend reaching out to accountants after close. there are many more important things to do during the period before close. Don't add that to your plate. 

    there's a few things you'll want to get right:

    1. The basis of the property (what you paid for it ).


    2. the split between land and building.

    3. Rental vs personal % - this will be how common expenses get allocated. 

    if you'd like, please pm me and I can send you templates for how to keep track of expenses. 

    [email protected]
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  • Janice Carter
    Real Estate Broker · Atlanta · Member since 2024 · 1k+ posts · 604 votes
    6mo

    Max, congratulations. Purchasing a duplex at 20 is a strong move. I would recommend speaking with an accountant early on. It is much easier to set it up correctly now than fix it later. At a minimum, open a separate bank account dedicated to the rental portion and run all rental income and expenses through that account only. Use a simple system such as QuickBooks or a well organized Excel spreadsheet to track rent, repairs, utilities, insurance, taxes and other operating expenses. Even if you are operating at a loss while living in one unit, you still want clear visibility into the property’s true rental performance. The key is separation and consistency. Clean bookkeeping now will make taxes and future scaling much easier.

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  • Markus Shobe
    Accountant · Indianapolis, IN · Member since 2019 · 247 posts · 134 votes
    6mo

    It depends, if you just want to take it off your plate completely then yes get an accountant to track things. If you don't mind doing it, get an excel spreadsheet and export your income and expenses to the spreadsheet and track it on there. For one property excel can work. For one property though I would do it myself as you said you will be losing money at the moment. 

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  • Mohammed Rahman
    Real Estate Broker · New York, NY · Member since 2020 · 2k+ posts · 1k+ votes
    6mo

    Hey Max,

    A lot of investors find that connecting with a CPA who works with real estate investors early on saves a lot of headaches down the road. The personal vs rental split is one of those things that's much easier to set up correctly from the start than to sort out later.

    Keeping the finances separate from day one tends to make everything cleaner. Some investors use a dedicated bank account for the rental side, others use free tools like Stessa which is built specifically for tracking rental income and expenses. Worth exploring what works for you.

    0Reply
  • Dan V.
    Real Estate Consultant · Norfolk, VA · Member since 2017 · 345 posts · 200 votes
    6mo

    Congrats on getting started at 20 — that’s a great move and honestly you’re ahead of most people already.

    A few simple things will make your life much easier when it comes to taxes and tracking performance:

    1. Separate your money first
    Open a dedicated bank account for the property. Have all rent go into that account and pay property-related expenses from it whenever possible. This keeps rental activity separate from personal spending.

    2. Use a dedicated credit card for the property
    Put expenses related to the house on that card (taxes, insurance, repairs, maintenance, supplies, utilities if possible). It creates a clean record of expenses.

    3. Track everything in a simple spreadsheet
    You don’t need complicated software at the beginning. A Google Sheet works fine. Track:

    • Rent received

    • Mortgage payment

    • Taxes & insurance

    • Utilities

    • Repairs & maintenance

    • Supplies

    This will help you see actual cash flow, even if you’re living in one unit.

    4. Store receipts and documents
    Create a Google Drive folder for the property and save:

    • Receipts

    • Closing documents

    • Repair invoices

    • Utility bills

    It makes tax time much easier.

    5. Understand the personal vs rental split
    Since it’s a house hack, some expenses will be part personal and part rental. Usually things like utilities, insurance, repairs, etc. get allocated based on square footage or number of units.

    Example:
    If you live in 1 unit of a duplex, generally 50% may be rental and 50% personal (simplified example).

    6. Talk to an accountant early
    Even just one consultation can help you set up the structure correctly from day one so you don’t have to fix things later.

    Honestly the biggest mistake new investors make is mixing personal and rental money, which makes taxes messy. If you keep things separated and document everything, you’ll be in great shape.

    And again — buying a duplex at 20 is a great start.

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