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All Forum Posts by: Cody Mitchell

Cody Mitchell has started 8 posts and replied 38 times.

Post: Is accounting software needed?

Cody MitchellPosted
  • Investor
  • College Station, Tx
  • Posts 40
  • Votes 25
Quote from @Daniel Hyman:

@Cody Mitchell

Spreadsheets are fine. If you really want to dip your toe in the waters of accounting software, you can try Stessa or Landlord Studio at low or no cost.


 As a CPA, for your investors with multiple rentals, do you advise they use spreadsheets? The reason I ask is we will be acquiring more properties so I would like to get the systems in place now so it's easier as we scale. Thank you for answering my questions!

Post: Is accounting software needed?

Cody MitchellPosted
  • Investor
  • College Station, Tx
  • Posts 40
  • Votes 25
Quote from @Chris Seveney:
Quote from @Cody Mitchell:

Howdy all,

My wife and I have two rentals that we just finished the BRRRR process on, and I was wondering how many people actually use an accounting software to keep up with things? I planned on using quickbooks, but was unsure on if other investors typically use an accounting software at all. We do have a CPA that we work with as well as a property manager who manages our properties, if that makes a difference.

Thanks in advance! 


 For two rentals I would use excel, and typically if you have a PM you just take the monthly reports and give to your cpa. I do not believe quickbooks is needed


 We only have two rentals currently, but I should have mentioned that we do plan on scaling and acquiring more in the coming years. With that in mind, do you still think I don't need quickbooks? I appreciate your advice!

Post: Is accounting software needed?

Cody MitchellPosted
  • Investor
  • College Station, Tx
  • Posts 40
  • Votes 25

Howdy all,

My wife and I have two rentals that we just finished the BRRRR process on, and I was wondering how many people actually use an accounting software to keep up with things? I planned on using quickbooks, but was unsure on if other investors typically use an accounting software at all. We do have a CPA that we work with as well as a property manager who manages our properties, if that makes a difference.

Thanks in advance! 

With the numbers you quoted above (ARV, repairs, interest rate, etc.) that puts your monthly payment on this property at roughly $1600/ mo, and your insurance and taxes at about $425/ mo. If you rent the property for $2000-2200 you will likely be in the negative after factoring in cap X, vacancy, and maintenance. Unless there is some way you could use this property as a short term rental, I would say this property does not make sense to BRRRR. One exception you could make, altough I don't recommend doing so, is if the property is in a great area that you think is in the path of progress and likely to see a lot of appreciation in coming years. I personally would flip this property and redeploy the capital on rentals that give you cashflow a month, but that may be just me.

Also like Kevin mentioned above, it may be worth looking into several different lenders. Maybe you can find someone who offers better terms and it would make more sense to BRRRR. Best of luck!

Post: Figuring out what I want to net per month

Cody MitchellPosted
  • Investor
  • College Station, Tx
  • Posts 40
  • Votes 25

The amount you cashflow is going to be dependent on a number of factors (such as location, type of property, interest rate, investment strategy, etc.).Right now in most places across the US because of real estate appreciation in the last few years cashflow margins are pretty tight. In a high appreciation area you may just break even after all expenses, and other markets are more cashflow friendly. In general, a 10-12% Return on Investment is considered to be pretty good (in my opinion). Meaning if you put $10,000 into a deal and it netted you $1000-1,200/ year or higher that it is a good investment. Certain things like airbnb can for sure increase your return on a rental, although the cashflow is going to be less consistent than a long term rental

It sounds like you either have a smoking deal (which is possible since you essentially have two investment properties on one note), or you could be leaving out some expenses, like captital expenditures, vacancy, maintenance, or property management, in your numbers. 

Post: HML refinanced into 30 year?

Cody MitchellPosted
  • Investor
  • College Station, Tx
  • Posts 40
  • Votes 25

Some expenses that could easily be forgotten when underwriting are things like holding costs, closing costs (on both the first and second closing), potential increases in interest rate, and potential increases in construction costs. Holding costs could be things like interest only payments, insurance, taxes, HOA fees, etc. Factoring in for these things will help give a lot more accurate picture of your costs and help you see when analyzing a deal if you will be able to successfully pull all of your money out.


When purchasing I would also make sure you get good accurate comps so that you don't overstate the ARV.

Post: Building a BRRRR Pipeline

Cody MitchellPosted
  • Investor
  • College Station, Tx
  • Posts 40
  • Votes 25

While I am by no means an expert, my wife and I found our BRRRR deals through a reliable wholesaler that we trusted. The wholesaler we worked with was great and set us up with other contacts in the area (property managers, realtors, hard money lenders, contractors, etc.). I would find lenders and realtors on BP and through meet ups in the areas that you want to invest in and try to get connected as much as possible. Wholesalers can be a great deal source but you always need to verify what they are telling you.

Post: Core 4-BRRRR Edition

Cody MitchellPosted
  • Investor
  • College Station, Tx
  • Posts 40
  • Votes 25

Congrats on beginning your journey. I personally would reach out to a several lenders. From there I would get what their interest rates are and get their assessment of your overall financial position and the deal. As you get close to finishing the rehab, that's when I would make a decision on the lender to use and go ahead and get the application process started then. Hope this helps! If you have any questions or if I can help at all feel free to shoot me a message. 

Post: Buying in other states! What do you think?

Cody MitchellPosted
  • Investor
  • College Station, Tx
  • Posts 40
  • Votes 25

My wife and I recently did two out of state BRRRR deals and are really glad we did. Investing out of state I think is a great option if you don't have the capital to get involved in the area you are currently in. In my area in Central Texas, much like you are saying about your market, finding a cashflowing property is extremely difficult. My wife and I still plan to invest here since I think properties here will continue to appreciate at a very high rate, but we invested out of state in an area where our cash has a little more purchasing power and it was a little bit easier to cashflow.

The pros of investing out of state is that it causes you to grow and build a network, you can choose any market you like, and it can make it easier to invest specifically based on your goals (whether that's cashlow, appreciation, number of doors, etc.). Some cons are you are likely going to know the area as well, so you'll really have to study and get good help to prevent you from buying something in the wrong neighborhood, you probably won't be able to just go visit the house in person, and you won't be around physically to address small issues as they come up. With all that being said, I really think that investing out of state is great to do. Just to add something though, if you haven't already, you should look into househacking in your local market. It's a great way to get a property for low down, learn to deal with tenants, and you can repeat it annually. 

Post: Starting early in real estate

Cody MitchellPosted
  • Investor
  • College Station, Tx
  • Posts 40
  • Votes 25

I would personally get a job in the real estate industry (banking, or as a realtor, construction, or even insurance), and focus on saving. Another huge thing, like everyone else has pointed out also, but I would focus heavily on building a network. Attend local REI events, and just seek to network and learn from other people.

I have a business degree myself but constantly regret going to college and not investing in real estate sooner. Getting yourself a solid W-2 job and then saving to start your investing journey at such a young age could set you up for success much sooner than a college degree. I'm happy to answer any questions you have or help in any way I can. Keep up the ambition, and good for you for finding BP and getting involved in forums so early!