All Forum Posts by: Cara Powers

@Bill S. Thanks for taking the time to post such a thoughtful answer. I forget that our population growth is anemic. You're right that without population growth, the areas I'm talking about won't be revitalized. And I would say that most of Albuquerque's challenges are related to poverty at the personal level and lack of resources at the government level. That said I'm going to change the tone a bit and tell you why Albuquerque is a great place to live.

1) Weather. It's almost always sunny. We do get some snow in the winter, but the streets get cleared quickly, and it never lasts for more than a few days. And yet, you only have to travel 15-30 minutes to go snowshoeing or cross-country skiing in the winter. There is even a small ski area in the Sandias. Skiing in Santa Fe or Taos is only 1-2 hours away. In the summer, the temperature rarely gets into the high nineties and almost never goes above 100 degrees. Because of the low humidity, evaporative cooling keeps the house comfortable even on the hottest days and is way less expensive that A/C. 

2) Outdoor sports. In the foothills to the east there is an extensive trail system that intersects with the extensive trail system in the National Forest. It is possible to live literally next two a trailhead. Trails are used for hiking, mountain biking, and horseback riding. There is also a trail system used for walking/running/biking along the Rio Grande. Days where the wind makes outdoor activity less fun happen but are rare. Albuquerque also has a bunch of small city parks with tennis courts and playgrounds throughout.

There are a ton of state and national parks and public lands. There are even lakes within easy driving distance. People here are very into camping and other outdoor recreation.

3) Wide variety of people. There are people who have spent their whole lives in New Mexico, and there are transplants from all over the US and even the world. The National Laboratories, the Air Force Base, Honeywell, GAP, Netflix and others mean we have a people from everywhere, and a lot of them are highly educated. There are also a lot of artists.

4) Convenience. You don't want to live on the West Side. The west side of the Rio Grande is a bunch of the kind of suburban sprawl you can find anywhere. It's inexpensive even for Albuquerque, but Bill S. is right that crossing the river during rush hour is painful. However, if you stay on the East Side, everything is super convenient. The intersection of I-40 and I-25 mean everything is not more than a twenty minute drive, and rush hour doesn't significantly change that. And yet we have most national chains, two Trader Joe's, two Whole Foods, lots of Sprouts, Lush and tons of others you wouldn't expect to see someplace where everything is twenty minutes away. 

We did just get Netflix. I know some people in the film industry here and they are starting to film again. Also, the University Hospital is (sadly) the major employer. Between the two, if I had money to invest here, I'd be looking at executive rentals. I think units furnished with modern comfort but local personality would do well with film industry people, traveling nurses, families of hospital patients, and possibly medical residents.

Also, we're getting an Amazon fulfillment center, so that should be good.

Hi @Mitch Messer!

Hmmm. Opinions on the ABQ real estate market differ right now. Flippers are complaining that there's too much competition and not enough cheap inventory. We actually have a bit of a sellers' market. Prices have remained strong, and properties aren't staying on the market long. Just on my block I've seen three posted for sale and under contract in less than two weeks. A year or two ago, houses were staying on the market a lot longer.

Regarding accounting services, I'm looking to work with rehabbers and landlords.

@Brian G. To expand on @Amy Fulbright's answer about GL accounts, if you are using accounting software (or even excel if you've set it up that way), you have a Chart of Accounts which is a list of General Ledger accounts. They are grouped by account type--asset, liability, equity, and income and expense accounts. When you acquire a property, you add the cost to an asset account. Any costs that need to be capitalized can be added to that account or to a separate Cap Ex account for that property. You can keep track of basis either way. (Or you can use Operating costs are added to expense accounts with are absorbed into the retained earnings equity account yearly.

If you're using Excel, you could actually have one sheet to track basis and break things down my category if you find that helpful and another sheet to track income and expenses. The dummy properties would each correspond to a separate sheet in the property file.

@Sharon Hsu  Has your 2019 tax return been filed or are you trying to make the Oct 15 extension deadline?

Cara Powers, EA

@Bill S. @Bobby Larsen  I've heard people complain that Albuquerque isn't very business friendly, but I've never heard anyone complain about specific policies. Can you clarify? Also, what are SLC, Denver, and Phoenix doing that Albuquerque could copy? Thanks.

I had planned on finishing up my first live in flip this year and then doing another one every two years. Alas COVID 19 happened, and I decided to start a remote bookkeeping and tax business. So my next new mortgage is at least another two years away. I'd love to connect with other people in Albuquerque. Also, I'm a job costing expert, so if you have any questions about bookkeeping for real estate and construction, get in touch.

I've lived in Albuquerque for the past 7 years. I moved there because it has the lowest cost of living outside the South. There are not many other cities where one can live 2 miles from a trailhead and 5 miles from a Trader Joe's for as little money. One thing you have to remember about Albuquerque is there is a limit to how much it can expand. It is surrounded by mountains and reservations. Developers have been focusing on the West Side expansion because land there was cheap and plentiful, which has help depress property values in what used to be the city center. However, they will eventually run out of room over there, and all the rundown houses in the B, C and D neighborhoods will start getting more expensive.