All Forum Posts by: Jody Newman

She didn’t get an emd She lost time not money plus she wasn’t doing anything with the property anyway ie. selling,renting,or remodeling, plus I Did not have it like that. But still here for the experience because I know it could have been done. At the end of the day I don’t think it was the price because I was willing to accept any offer on these because I got em so low. I thought this business was about making mistakes lol and I am looking for a mentor that’s y I’m on here sharing my story

For prepaids, I'd amortize that expense over the timeframe of it's use. Account for it within your monthly "Total Operating Expenses " line. 

Ex: Annual insurance bill of $1000, should be amortized $1000/12 months = $83.33/month - add this to your monthly "Total Operating Expenses " line

For reserves, it's a similar premise. Let's say you want to reserve 10% of your gross rents towards maintenance issues. Therefore your monthly maintenance expense is $950 * 10% = $95. Because some months you'll have maintenance expense and other months you won't, the balance of these funds for maintenance related issues will grow or decline accordingly. I'd also account for this expense in your monthly "Total Operating Expense" line item.

Also, I was calculating your numbers and the $24,149 doesn't seem to jive. If I total up the numbers I only get to $22,770. You might not be line-iteming out something. 

Hi @Annette Homewood !  Hey, you can do this with the cash you have. You have rentals and the condo, start small and buy some rural vacant land, say Kern or San Bernardino County for a $500, sell for $1500 and keep growing your acquisition balance to where you are comfortable enough to make some other choices.  While you are doing that you can sell a few of the nicer properties with owner financing and sit back and collect $199/mo per property for doing nothing. Totally not crazy. Many of us are doing it.   And since you are paying cash for everything you don't have to worry about credit - AND - you will sleep well at night because everything is paid for.  Hope this helps!  Let me know if I can help.