I use a Heloc on one property as my capital expense account. The heloc I have in place is revolving so I'm only paying for the money when I use it. This way I have money sitting but its someone else's money so mine can be used to buy more properties. If you do not have something like this set up keep a separate account for capX so that when something comes up you have the capital to fix anything major. Rule of thumb is 3-5k per property depending on condition of said property.
That’s a great way of doing it, thanks James! Does that offer any sort of tax advoidance advantage as well? Everything I’ve read says that new property acquisitions with money from gross income can’t be considered an expense, as it adds to the value of the company. A durable good or something like that the IRS calls it.
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