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All Forum Posts by: Kevin McGuire

Kevin McGuire has started 7 posts and replied 164 times.

Post: Best accounting software to track rental property income/expenses

Kevin McGuire
Posted
  • CTO of BiggerPockets
  • Seattle, WA
  • Posts 168
  • Votes 178

@Dan V. Thanks! Good insight on the use of locations. I like your idea on how to switch over. Appreciate the follow up.

Post: Best accounting software to track rental property income/expenses

Kevin McGuire
Posted
  • CTO of BiggerPockets
  • Seattle, WA
  • Posts 168
  • Votes 178
Originally posted by @Dan V.:

@Kevin McGuire I use class for each property. The reasaon, location can only be used at header level, meaning you can only assign it by transaction while Class can be assigned at line item level, ...

Thanks Dan! Yes this is what I hit as well. I went with locations based on an article I read but now regret it. Specifically, my property manager’s charge needs to be split across properties which requires me to ledger it (ugh). I went with locations because I thought I may use classes for some other purpose (e.g. class=hvac, location=123 Main) but I’ve not yet found such a case. I’ve considered moving it all to classes but it’s a lot of work  

Post: Best accounting software

Kevin McGuire
Posted
  • CTO of BiggerPockets
  • Seattle, WA
  • Posts 168
  • Votes 178

I use QBO. It did require some research to understand how to set things up but once you’re over the learning curve it’s pretty low effort. I do not have a finance background. It is a pricey though. On the plus side, you can give permission to your accountant to pull your data and file your taxes. My thinking ultimately came down to that QBO is what people use to run their businesses and I’m running a business.

Post: Another Seattle Investor

Kevin McGuire
Posted
  • CTO of BiggerPockets
  • Seattle, WA
  • Posts 168
  • Votes 178

Hi @Jess Haas, I do! Ottawa specifically, 10 doors. It’s where I’m from, ubderstand the market, and have reliable contacts for real estate purchasing and property management. I also chose it because of the lack of speculation or other outsized effects on the market: no booms, and no busts. A very stable market. My goal is “get rich slowly”, cash flow with appreciation, a better risk/return than the stock market. I average about a 5% cap rate (which includes paying a property manager) and I model 5% appreciation based on historical numbers but it’s done much better. My base criteria is a cap rate which exceeds my mortgage rate. I spent a few weekends with an agent here looking at properties but found it hard to meet that criteria, her comment was that folks here in Seattle invest for appreciation.

Post: Another Seattle Investor

Kevin McGuire
Posted
  • CTO of BiggerPockets
  • Seattle, WA
  • Posts 168
  • Votes 178

Thanks @Chris Themelis, that’s helpful info. 

Post: Best accounting software to track rental property income/expenses

Kevin McGuire
Posted
  • CTO of BiggerPockets
  • Seattle, WA
  • Posts 168
  • Votes 178

@Dan V. This is what I use, QuickBooks Online Plus. I am not accountant and was able to figure it out. Curious: do you use Locations or Classes for each property?

Post: Is Ottawa market crazy right now?

Kevin McGuire
Posted
  • CTO of BiggerPockets
  • Seattle, WA
  • Posts 168
  • Votes 178

@Sam Raj We tend not to see bubbles in Ottawa. Bubbles are the result of speculation and that money tends go to Toronto or Vancouver. I like Ottawa for the sustainable economics (as others here have described) and the resulting “steady Eddie” housing market. So no, I don’t think it’s a bubble because I don’t see unusual economic forces artificially jacking up prices. Is it a spike and will prices go down? No idea. I suspect though that it’s seeing some additional investment as a secondary market to a saturated Toronto market.

Post: Another Seattle Investor

Kevin McGuire
Posted
  • CTO of BiggerPockets
  • Seattle, WA
  • Posts 168
  • Votes 178

@Chris Themelis I live in Seattle but invest elsewhere. Couldn’t find properties here that fit my criteria for cash flow, seems the model here is low to negative cash flow while banking on appreciation. Would be interested to hear if your experience is different.

Post: where and how should I invest in Ontario

Kevin McGuire
Posted
  • CTO of BiggerPockets
  • Seattle, WA
  • Posts 168
  • Votes 178

@Joseph Jin I can’t speak to Southern Ontario, mine are in Ottawa, an area I like for a number of reasons I can get into if interested. There’s a magazine Canadian Real Estate Wealth (“CREW”) that has issues which provide analysis of various cities.

My one counsel is to always invest with positive cash flow. Yes the real gains are in appreciation but cash flow is needed to fund repairs, sustain vacancy, etc. Without that you increase risk. You don’t want to be in a position of having to keep funding the investment from your day job. You want to be able to sustain the worst case of a downturn where you lose your job and the place is empty for a few months; otherwise you’re forced to sell below market. If that happens give me a call and I’ll be waiting with my positive cash flow and reserves to pick up the good deal :)

Post: Landlords: What is your #1 time-saving system?

Kevin McGuire
Posted
  • CTO of BiggerPockets
  • Seattle, WA
  • Posts 168
  • Votes 178

@David Mathews For expense tracking, Expensify works well. You capture it with your phone and it can fill in the details automatically. Get in the habit of scanning the receipt immediately and you can then toss it. At year end you have them all recorded, with scans, for taxes.