All Forum Posts by: Jake Baker

@Chris Brown

Don’t Share Sensitive Info Prematurely. While providing ID isn’t unusual in some cases, ensure the property checks out before sharing personal information. This protects you from potential scams. This sounds suspicious. 

@Jack Hamm

Join Local REI Meetups: Attend local real estate investor meetups or networking events (like those hosted by your REIA). In-person connections often lead to relationships with active wholesalers. I recommend finding local meetups to attend. https://www.biggerpockets.com/forums/521 I have found all of my best connections at local meetups.

Facebook Groups: Besides DELREIA, join other local real estate Facebook groups. Regularly engage in discussions to build visibility and credibility.

Build Relationships with Real Estate Agents: Many agents work with or know wholesalers. Let them know you’re a serious cash buyer for off-market deals.

@Mic Salvador

This can vary widely depending on what market you in, how extensive the rehab is, and how you are financing. 

Some BRRRR Nuances:

Rehab Budget: Ensure that bids are received from multiple contractors and that adequate reserves are made for cost overruns.

ARV: Be conservative on your ARV since the appraisal concerns one person's opinion.

Timeline: Whatever a contractor says, add 4-8 weeks and budget for those holding costs. 

@Alex Veloz

Great questions!

I'll be honest - most bookkeeping companies are not worth the money, so vet them carefully. However, if you partner with the right one, they will be instrumental to your real estate growth. Your bookkeeper needs to specialize in Real Estate or thoroughly understand the industry because it is very balance sheet-heavy.

I recommend finding a US-based bookkeeper who specializes in real estate and doesn't have too much on their plate. Ask for references!

@Max Kulishov

Great way to put it, @Jonathan Greene. I also think micromarketing is best for newer investors.

Some things to add

Tailoring your lists - like focusing on absentee owners, properties with long-term ownership, or pre-foreclosures—can improve your response rate.

Consistency - It’s rare to get responses from a single mailer. Sending follow-ups every 4–6 weeks can keep you top of mind when the owner is ready to sell.

@Felipe Fernandes

Many investors form separate LLCs for each property. This structure helps ensure that if one property faces a lawsuit, the other properties and their income streams are protected. However, managing multiple LLCs can mean higher costs and administrative work (separate bank accounts, annual filings, etc.).

It depends on your risk tolerance and ability to stay organized. It comes down to having good insurance for protection. I keep around five rentals per LLC, and I am in Jacksonville, FL, where my homes are worth around $250-350k. Some CPAs will tell you to create a new LLC for every property because that means more business for them. :) Having more than ten bank accounts is excessive, in my opinion.

Umbrella insurance policies can add an extra layer of protection across your portfolio. Combining these strategies often gives investors the best balance of cost, simplicity, and security.

@Nikol Catino

I see this is posted in the BRRRR forum. Are you looking to renovate the property and refinance it down the road? Or are you looking to just buy a primary residence that is move-in ready?

@Rene Hosman

I use QuickBooks Online (QBO) for my flipping business, rental businesses, and bookkeeping clients. QBO has every feature you need to run a business, excellent reporting features and integration with other software. It is the most popular software in the industry, and most Tax Preparers are familiar with it, which makes tax season easier.

My Recommendation: Spreadsheets are usually fine for your first 1-3 properties. 3+ properties, you should use a software. If you plan to scale at all, I recommend QBO. If you do not like bookkeeping/accounting/technology, hire a bookkeeper specializing in real estate investors.

@Brett Jurgens

The "2 out of the last 5-year rule" in real estate allows homeowners to exclude up to $250,000 ($500,000 for married couples) of capital gains from the sale of their primary residence if they lived in the home for at least two out of the five years before the sale. This exemption can be used every two years.

A great wealth-building strategy is to House Hack every two years, live in each house for at least two years, and then sell older House Hacks before the 5-year mark.

@Vanessa Lule

Estimating Occupancy Rates: AirDNA is a great tool, but it can sometimes be hard to verify actual occupancy.

Hidden Costs in Monthly Expenses: Besides rent, utilities, and cleaning supplies, don’t forget to budget for:

- Maintenance and Repairs: Minor wear and tear costs add up, especially in short-term rentals.
- Platform Fees: Airbnb and Vrbo charge around 3% per booking.
- Furnishings and Decor: High-quality, durable items are worth the initial investment.
- Insurance: Short-term rental insurance (beyond renters') can protect you from guest-related risks.
- Licensing or Permits: Check if your area requires permits, as some cities have fees for short-term rental operators.

Breakeven Analysis: To calculate your breakeven occupancy rate, add all monthly expenses (rent, utilities, cleaning, insurance, etc.). Then, divide this by your estimated nightly rate.

For example, if monthly expenses are $3,000 and you estimate a $150/night rate, your breakeven occupancy rate would be around 20 nights per month (3,000 / 150), or 67%. Adjust this with seasonal occupancy data for a clearer annual picture.