All Forum Posts by: Simon W.

you're overthinking of the process. 

Even if you are short by $3k when the time comes, you should be in a position to have $3K in your retained earnings throughout the years. 

Most investors don't actually have that much in reserves, when the time comes they just put their money in the business as a contribution. 

If all investors put all money into the reserves, there's no point of investing because you are waiting for this money to be used up by the property when it might not happened. If you end up maintaining the roof year and year, you are extending it's life. 

 I think it's doable with just a P&L, but it really comes down to what type of returns we are talking about? Simple 1040, 1120S, etc?

I prefer to see the Balance Sheet as well to see what were capitalized and how much should be depreciated/amortized to maximize the deductions.

 You don't need to open another account for the reserves. As long as you do the accounting correctly, you account for it. Don't always look at what the bank account balance is, look at the books to see how much was allocated in the reserve.

3-6 months reserves are usually for regular maintenance or not full-on big ticket items. 

Don't mix the funds with stock market. You can put your funds in a interest bearing account/money market/savings, you just need to account for the dividend incomes when recording the books.

 What kind of partner(s) you are looking for? 

I got a construction company that can do the whole lehigh valley, primary areas are Allentown, Bethlehem, and Easton, but we've been doing projects all over the places such as Wilkes Barre, Plymouth, Pen Argyl, Effort, Poconos area, Pittston, and more.

There really isn't an answer to that. It depends how much you can afford to put aside. What is the cash flow going to look? How old is the property or the age of the thing you are talking about? 

For example, the roof, how old is it now? How many more years can you get out of it? 

A roof that you are quoting today is $20K, in 10 years, that price might be $30K. 
You can put 20% if you have the funds to put aside for all aspect of budget. 

Again, there's no 1 answer to this. Lots of variables.

I was a CFO & Controller so budget was a big part of my job. 

You can have 2 identical properties with same rent income, but the expenses and capex will be different. Mother nature can do 1 massive damage to one and not the other. One can get a lot more wear and tear. 

You are the lender and lending $280,000 at 0% for 30 years. Are you okay with that? or would you have to make some interest for lending that out?

You are free to pay it all in cash or pay it off early.

What if scenario: 
You are forgetting that most likely your $350K house in 30 years might appreciate close to $800,000 so if you say you ended up paying about $700K, you are well in the $100K net profit

Buildium would be the most cost effective. I keep hearing bad things with Doorloop.

Appfolio is great, but you won't qualify for it. 

@Arie Guerra is the CPA and bookkeeper in the same company or you hired them separately?

For the QB, is the bookkeeper handling all your rentals only or both corps?

If the CPA only needs to file 2023, I do not understand why they would say it should run smoothly until 2025.

If you hired the bookkeeper in April, it is mid-June, by end of July, the books should be running smoothly for at least this year. 

Guys, this thread was 4 years ago

I actually consult with PMC that uses AppFolio.

Your PM should be able to send you the owner statement that shows the consolidated summary of your portfolio.

They might have to use the Owner Statement (Enhanced Report)