It's incredible how many videos, tutorials, webinars, and the like are primarily about "buying your first property" or " how to get out of analysis paralysis", but don't really go into much else.
Now that I bought my first duplex with 100% tenant occupation, what now? All the various information seems contradictory and very poorly pieced together. Perhaps I have not found the right outlets for such information.
Situation: I live in Florida and my first purchase (duplex) is in Florida as well.
I first created and opened my LLC. Then opened up a checking and savings account under the new LLC. However, I did have the duplex under contract before I opened up the LLC checking and savings account and had them funded with capital, so I paid the 5k escrow with a personal check. I was then advised to put the duplex in my name along with my wife to help with the cash-out refinance/mortgage. Once that occurs, I can then put the duplex in the LLC. (this is just what I was advised, not sure if accurate)
Paid cash for the duplex. I've reached out to a few mortgage companies, including Mr. Greenee's and others, with scheduled calls set for this week and next. Any other recommendations would be appreciated. I sold my staffing company two years ago to start investing in real estate and my wife has a W2 job as an RN. (God bless her) We have 800+ credit scores. (but I guess that might actually hurt us these days...?) Once I do get a mortgage, I should never make additional principal payments or attempt to pay it off, correct?
I plan to manage the property myself to learn the process and save some money initially while I get rent up to market rates. One lease ends June 30th the other Sept 30th of this year. Quick question on that, do I need to honor previous leases? Do I need to create a new lease for them to sign under me while honoring the current timeframe and rent?
If you've read this far, thank you. Since I plan to manage myself, I will no longer be using the property management company the previous owner used. They had a system in place that allowed for online payment, work orders, etc. After some research, I decided to go with RentRedi initially just to get a basic system in place for the tenants to be able to pay the rent online and submit work orders and upload lease agreements. (I just got the basic plan, no accounting module included)
I'll have all of the operating expenses now company out of the company checking account and rents collected deposited in those accounts while any security deposits will be placed in the company savings account. ( Or at least this is my plan, but I need advice on how or what to change here)
I'm trying to now "build my team" but that is turning out to be much harder than I expected. I've reached out to, filled out online requests, and called on at least 8 CPA firms, none of which have called me back. ( maybe because Tax season is still dragging on?)
What type of accounting software should I be using? Am I supposed to keep 2 sets of books? One for the LLC and one for the rental expenditures/repairs etc. I see that most of the landlord software has accounting built in, but I noticed that is primarily for the recording of income and expenses for the individual properties. But what about transactions that occur within my LLC? And understand more about the tax advantages I can take regarding using personal home office expenses, cell phones, and other expenses I can now put through the LLC.
I've also tried to reach out to a few real estate attorneys just to try to start developing a relationship to see if they are a good fit for future business transactions and advice. No one seems to want to give me the time of day or they are some online "wham bam here's your generic lease agreement, that will be $45, goodbye" or "if you have a question, you can email our attorney and they will get back to you in a few weeks.." I don't mind and fully expect to pay for their time. Not trying to get free advice, but an initial consultation would be nice.
It seems there are so many people who barely brush on this and I've heard so many contradictory statements, it's been very difficult to understand what's right.
If anyone actually reads this whole thing, thank you so much. I need your help, recommendations, and anything you might be willing to provide. I plan to keep the rental train going. My goal is to own 10 doors by the end of the year and try to get bigger with each purchase.
Thank you.
