All Forum Posts by: Jake Baker

@Sharma Parth

They are offering you a turnkey solution and charging you a fee for it. There are some great turnkey companies out there, but I prefer to hire a general contractor for the rehab and do things myself to make more money. 

@Shay Nabors

Looks like a great property! How does the ROI look? Were you able to pull most of your money back out?

@Kelvin He

Some things to consider:

Transfer Taxes: Some jurisdictions impose transfer taxes when property ownership changes, even if it's to an LLC you own.

Due-on-Sale Clause: Check your current mortgage agreement for a due-on-sale clause, which might require you to pay off the mortgage if the property is transferred to an LLC. Uncommon but can happen.

Property Insurance: Ensure your insurance policies are updated to reflect the new ownership structure.

Chris is right that the current debt is tied to you so will need to refinance to improve your DTI. However, if you are cash flowing as a rental, it shouldn't hurt you too bad.

@Kristen Dolotina

Plenty of great options here on BP. Check out the Tax Pro Finder 

https://www.biggerpockets.com/business/finder/tax-and-financ...

How would you suggest a bookkeeper separate by property in QBO?

1. Separating by customer - doesn't allow to assign a customer to every type of transaction

2. Creating accounts for each property - clogs up the chart of accounts when you have many properties. 

3. Separating by class - Allows for easier filtering although you are limited by the amount with a plus subscription. 

I agree that each unit does not need to be separated out unless the client specifically needs to see it broken down like that for project tracking.

I have had multiple entities in one subscription before and it gets very chaotic if you are categorizing by business (location) as well. If you categorize something in the wrong business on accident it is very hard to find those mistakes. If a balance sheet is required for each business, getting them to balance can be difficult to balance.

@V.G Jason Absolutely! That's a great way to put it.

Absolutely! @Bonnie Low

Great point. It is easy to overtrack and overcomplicate your business. Simplify then multiply. 

Top 3 Hurdles in Real Estate Bookkeeping:

1. 🎯Accuracy: Maintaining accurate records to ensure seamless tax reporting.
2. 📊 Interpretation of Data: Using this information to make key business decisions.
3. ⏰ Time Management: Removing yourself from the bookkeeping to focus on other activities.

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Congrats @Bobby Noubiap

@Roque Miranda Congrats! Have you considered adding a second bathroom? That could drastically improve the ARV.