All Forum Posts by: Greg Wilson

I am a current TC user and due to their price increases from $90 per year to $50 per month, I am switching to Avail.

@Michael Bridgett I kept my Refi at 53% in order to meet my goal of $500 cash flow. I am a conservative investor and I try not to leverage my properties over 55/60%. The condo market is decent in Frederick, however the HOA fees will kill your cash flow.

Thank you @Dmitriy Fomichenko. 

Bob, I put all estimated taxes from the proceeds into a high yield CD until the tax bill came due. I was hit with a small penalty for not paying estimated taxes the quarter it came in, however the CD return was much more than the penalty so it worked out for me. 

Investment Info:

Single-family residence note investment investment in Lyman.

Purchase price: $125,000
Cash invested: $15,000

Owner financed property.

What made you interested in investing in this type of deal?

This was a property I owned in SC and was having a hard time finding a qualified buyer so I owner financed the property.

Lessons learned? Challenges?

Always do a credit and background check.

Investment Info:

Condo buy & hold investment.

Purchase price: $105,000
Cash invested: $20,000

Buy and hold rental, just appraised for $165K. Pulled investment out with cash-out refinancing to purchase next property.

What made you interested in investing in this type of deal?

It was a short sale and I was able to buy property with instant equity.

How did you find this deal and how did you negotiate it?

My real-estate agent found the property. It was listed at $130K. I calculated rehab to be $20k (with sweat equity) and the comps were $150K. I had my agent submit a bid for $105K and the bank accepted it. The unit just appraised for $165K.

How did you finance this deal?

Cash from stock investments.

How did you add value to the deal?

Complete rehab including; HVAC, Windows, Kitchen, bathrooms. I provided all labor for everything but HVAC and WIndows.

What was the outcome?

Unit just appraised for $165K. I completed a cash out refinance and currently looking for next property.

Lessons learned? Challenges?

This was my first rehab and I took way to long to get it ready to rent out. I would hire a crew to complete the rehab next time.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Jim Bass Group in Frederick.

Thank you Matt. I just hired my CPA, so I am good moving forward. I have a business account now and will use it for all my expenses going forward. Thank you for your reply.

Greg

Thank you Mike, That's why I am interviewing CPAs as we speak. No reason to speak down to people when you respond to their posts BTW.

Good Evening my fellow Comrades, I have a few questions I hope someone can help me with. I purchased a buy and hold rental property last year (2019) and have just completed a complete rehab of the property. I spent $110K on the property and have spent $20K over the past 8 months getting it ready to rent. I know I need a CPA and I am in the process of interviewing them. In the mean time I need to get my books in order for my 2019 taxes. Here are my questions.

1. I just opened my business account, however the $130K was paid for with personal funds. I have not started using the business account yet.

2. How do i enter these initial $130K in "Startup Expenses" in Quickbooks Pro? I thought I would just show it coming from my "Petty Cash" account and balance it out with the "Members Contributions" account. I do not plan to pull these funds back out of the business at this time so i dont want to show as a loan. Instead of using the Petty Cash account I thought it might be cleaner to create a temporary "Startup Funding" Bank Type Account. Thoughts?

3. I also purchased a few tools for the rehab, can these be expensed?

4. Also should I use cash or Accrual accounting? I think most people will say cash.

5. Trying to decide how I was to categorize my "Operating Expenses" vs. my " Rental Expenses" I have seen some that actual use COGS to track Rental Expenses and Expenses to track Operating Expenses.

Thank you,

Greg

John T., I am thinking of doing my books this way as well, do you still have your books setup this way?

Good Afternoon Everyone, I have setup a Buy and Hold Rental Company and I'm using Quickbooks Pro to keep my books. I am looking for a CoA that others have perfected for this type of business. I look forward to your reply. Thank you, Greg