All Forum Posts by: Jake Baker

@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.

@Alex Pena

I recommend finding local meetups to attend. https://www.biggerpockets.com/forums/521
I have found all of my best connections at local meetups.

Ill be at the beers and deals meetup tonight!

@Jason Porto

6-12 Months of Expenses: Many investors aim to have 6–12 months of property expenses (mortgage, insurance, utilities, and maintenance) saved. 

Set Aside for Major Repairs: Most Cap Ex items have a life expectancy. Plan for those system failures on a spreadsheet. 

Property Age and Condition: Older properties may require a more significant reserve due to higher maintenance needs, while newer ones may allow you to taper off sooner.

Understand your portfolio: I look at my portfolio as a whole and calculate a number I am comfortable with. It is very unlikely that all my properties will stop generating revenue at the same time. 

@Tyler Hoffman

I recommend finding local meetups to attend. https://www.biggerpockets.com/forums/521
I have found all of my best connections at local meetups.

@Miki Sheinaizen

I recommend finding local meetups to attend. https://www.biggerpockets.com/forums/521
I have found all of my best connections at local meetups.

For your BRRRR strategy, partnering with a local property manager and connecting with contractors early on can help streamline your rehab process, especially if you're not local. Best of luck.

@Nevin Wilkie

Luxury Vinyl Plank (LVP): Durable and hardwood-like, LVP is ideal for rentals or flips. Look for brands like LifeProof, COREtec, or Shaw, with a 12–20 mil wear layer to handle heavy traffic. $2-4 per sf.

Rigid Core Vinyl: This material is available in SPC (stone polymer composite) and WPC (wood polymer composite) types. SPC is great for moisture-prone areas like kitchens and baths, while WPC is softer underfoot and ideal for main living areas. For quality options, expect $2.5-5 per sf.

Click-Lock vs. Glue-Down: Click-lock is DIY-friendly.$1.5-3 per sf.

@Celso Rodriguez

It's great to hear you're diving into BRRRR! Austin has become a pricier market, so seeing BRRRR-ready properties in the $250K+ range is expected here. Due to high demand, many investors in Austin are finding they need to adjust their approach a bit to make the numbers work.

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

@Shawn Callan

Lenders typically look for a DTI under 50% for conventional loans. One option is to pay down any existing debts (credit cards, car loans, etc.) to free up income capacity. Any reduction in non-mortgage debt can make a big difference in your overall DTI.

Since you mentioned having funds for a down payment, putting more down on your new purchase could reduce your new mortgage payment and lower your DTI. Alternatively, using part of those funds to pay your current mortgage might help create additional borrowing room.