Seeking Long Term Real Estate Investing CPA

Tax, SDIRAs & Cost Segregation
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Seeking Long Term Real Estate Investing CPA

Conner WoodsPro Member
Member since 2017 · 3 posts · 1 vote

Hello,

I recently bought a duplex in Lansing, MI (end of October 2017). I've since then been living in one side and renting out the other side. Meanwhile I've been trying to expand my knowledge by reading blogs, books and forums. Having learned some more, especially through reading "Tax Strategies for the savvy Real Estate Investor" I've grown concerned that the person I've gone to in previous years for my taxes may no longer be the best fit for my specific tax needs as I get more and more involved into real estate.

This is my first rental property and I intend to expand, I was hoping to reach out to the BiggerPockets community and ask for references for a real estate investing CPA with emphasis on long term rentals. I live in Lansing, MI area and would like to ideally find someone in the area I could meet with face to face for hopefully this upcoming tax season, tax  seasons in the future and other tax related questions.

Additionally, what are the thoughts on Tax Advisors/CPA's out of your state? Do you think this should be avoided or is it just as good as finding someone in your area with all the technology at our disposal now (Video calling, Faxing, Photo scans/e-mails etc.). Would it be better to find a more experienced individual than someone in your area, or someone in your area slightly less qualified?

Really appreciate in feedback on this,

Thanks in Advance,

-Conner Woods

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Eamonn McElroy
Accountant · Atlanta, GA · Member since 2015 · 1k+ posts · 1k+ votes
7y

@Conner Woods

It all depends on what you're comfortable with.

Do you like the idea of being able to drop in for a face-to-face meeting?  If so, someone within an hour or so radius of you might be best.

If you don't mind an out of town CPA/EA, your options expand dramatically.

Even with a local CPA, everything will be (or should be) electronic as far as document delivery and the majority of communication goes.

There are at least a dozen CPAs/EAs on this forum, all of which to my knowledge are capable of serving clients remotely.

General advice is to read posts and search the forum, then reach out to who you find provides value and might be a good fit.

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  • Eamonn McElroy
    Accountant · Atlanta, GA · Member since 2015 · 1k+ posts · 1k+ votes
    7y

    @Conner Woods

    It all depends on what you're comfortable with.

    Do you like the idea of being able to drop in for a face-to-face meeting?  If so, someone within an hour or so radius of you might be best.

    If you don't mind an out of town CPA/EA, your options expand dramatically.

    Even with a local CPA, everything will be (or should be) electronic as far as document delivery and the majority of communication goes.

    There are at least a dozen CPAs/EAs on this forum, all of which to my knowledge are capable of serving clients remotely.

    General advice is to read posts and search the forum, then reach out to who you find provides value and might be a good fit.

    1Reply
  • Conner WoodsPro Member
    OP
    Member since 2017 · 3 posts · 1 vote
    7y

    @Eamonn McElroy

    Thank you so much for the feedback!

    I guess I've never tried to communicate something that could potentially be as intricate as I feel many tax issues could be. So I'm unsure how well only being able to communicate electronically would work out! But maybe that is my answer given my comfort levels with the matter right now!

    I will make sure that I read more and reach out to those who I feel would be a good fit for the various areas I'll be needing help with in the future as my real estate portfolio continues to expand.

    Thanks again!

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  • Michael PlaksPro Member
    Tax Accountant / Enrolled Agent · Houston, TX · Member since 2014 · 5k+ posts · 6k+ votes
    7y

    @Conner Woods

    You illustrated one of my favorite quotes: Advice is something we ask for when we already know the answer but we wish we didn't. :)

    If you can find someone local who specializes in REI the way we do - then it's great. But as you figured, expertise is more important than convenience.

    A lot of investors work with their accountants remotely across the state borders, so it's certainly working. Hopefully some of them will chime in.

    1Reply
  • David Hall
    Real Estate Agent · Lansing, MI · Member since 2016 · 143 posts · 78 votes
    7y

    Greetings Conner and fellow Lansing, Michigan investor.  The first thing I would say is to make sure you are keeping accurate records and book keeping.  I have a tax preparer I would recommend who is local and has helped me as I've scaled my investments.  Only now since I have partners and land contracts and more complicated dealings am I planning to switch to a CPA.  The reason I waited is the cost.  A tax preparer who has rental property experience should be able to help you at your current stage.  Let me know if you want references.  I can tell you who I've used for the last 5 years and who I am planning on switching to.

    Also, we most likely will be having a CPA come share about 2019 tax planning for investors at an upcoming REI event. The next event is Dec 19th at Tony M's on Creyts Rd in Lansing at 6pm.

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