New landlord-Tracking income, mortgage, and expenses
Good morning everyone. I recently closed on my first triplex and had a couple questions about Tracking Expenses. None of the books I have read so far have gone in much detail on tracking expenses, rent, and payments. It's only a triplex (also possibly looking to buy the next door quadplex as well), so I don't have a large portfolio at the moment where I feel paying for a service would be the best use of money. I'm hoping to gain a better understanding of what and how to track in google sheets to keep track of money in and money out. Also I will be meeting with a CPA this Wednesday to ask him many of these questions as well and build that relationship. I have a business checking and savings account through Capital one, for rent collection and expenses AND holding the security deposits, respectively. I have also created an account on apartments.com and linked my bank account and sent signup info to tenants to receive ACH rent payments.
-Do you have recommendations for how to set up an excel document to ensure I am tracking everything appropriately? Do you save all receipts?
-I deposited about $1100 into the checking account, this was the remainder of a $10,000 credit from the seller. Was this the correct location to place this money?
-I will be making some purchases for the property: lawn mower, washer dryer, some electrical work, possibly a printer/scanner for documents. Are these business expenses that should go through the business checking account? And to pay for them do I transfer money from my personal checking to the business checking? Am I able to pay for things with my personal credit card (keep the receipt) and then make the specific payment/transfer from my business checking?
-I intend to look things up on bigger pockets, google, youtube etc. Any other great resources for getting started? Any good book recommendations?
Thank you for your guidance!
-Brady Gross
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- Property Manager
- Royal Oak, MI
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The better organized you are, the better you can track performance, be prepared for income taxes and a potential IRS audit.
If you plan to grow, definitely set up a separate biz bank account.
Check your state laws about if security deposit must be in a separate account and who gets any interest.
HIGHLY recommend scanning all receipts as many are on thermal paper that fade over time.
- Save them with consistent naming conventions:
yyyy-mm-dd_street_Address #_(vendor)_short descrip_$##.##
- Drew Sygit
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- 248-209-6824