My first Triplex North Port Florida

[James Strawser]

Just wanted to let everyone know I closed on a deal and will be moving in on October 1st. I have a few weeks to get the unit I want to rehab up to speed for a renter to move in on Nov 1st. I am not much of an administrative guy more hands on with the ground work and seeing the future property bring in cash flow. 

I am still researching on the blogs and discussions so my outright apologies if the questions are redundant. 

I am setting up the administrative side of the property. Eventually I would like to turn it into an LLC in a year or two from now. Until that time some general advice would be greatly appreciated as I would like the property to have the plans and processes in place prior to most foreseen circumstances.

What has worked well for the paperwork side of owning a property? Cloud based? Hard paper copies on sight? One copy in safe deposit box? (Hurricanes in Florida gotta be prepared)

File folders for each individual unit sub categorized for inspections, tenants, expenses and income?

One general folder for the property broken down into sub categories?

Banking accounts:

Should I open three to four new accounts for each unit with a local bank and the entire property even if I am living in one? To record income (deposits, rent) from each unit and expenses out of that unit specifically?

Even though I would still have to pay out the mortgage with these accounts? Or my own separate checking account and any large cap ex costs if tenants don't pay. Initially I will have to pay (rent) so to speak to myself to cover my additional calculations of expenses and cap ex savings etc. 

Ideally speaking all units will be rental incomes after a year or two, (BRRRR) refinance or the new LLC I create take over the loan.

Being this is my first property should I let an experienced property management company handle this property for the first year?

Thank you for your time and patience with this topic as I am sure many more questions will occur. 

[Tyler Gibson]

@James Strawser Congrats! I would start by saying you have no reason to start an LLC at this time. Since you live in the property you don't need LLC shelter you from lawsuit since you primary residence is already safe. As for a property manager don't bother learn the ropes the hard way and save the 10% you would pay in management fees and all the other one time fees that go along with professional management.

For accounting everyone has a different expectation. I think the big thing is to setup a non interest bearing account where you can put the security deposits and under no circumstances should you touch that money unless the tenant is leaving and you are collecting against damages or paying them back. I would use a online platform for management, rent collection, tenant applications background checks. Some options I have collected and made note of at the bottom of my post. 

Since you are new to this my best advise is choose the right tenants and everything will be a good experience. letting the unit be vacant for an extra 10,20,30 days is expensive but far less expensive than a bad tenant. Collect a full months rent security deposit and treat people with respect. These people are going to be your neighbors so best to find people that you will not need to call the cops on or anything like that. 

If you ever have any specific questions hit me up or post here on BP and you will get some advice. 

Online Tenant management tools

Cozy.co

Tenant cloud

appfolio

burbz

turbo tenant

Best of luck and Congrats again!