All Forum Posts by: Markus Shobe

Those cost would get added to the basis of the property and depreciated over a certain amount of years. 

If the HR person has RE properties I would assume that they are good at real estate tax planning and etc and since you have been with them for 20 years you are familiar with them and they are familiar with you. I would want a RE tax pro that I can reach out to throughout the year and not just during tax time. 

Get a real estate tax pro. They will be well worth the money spent. They can answer all these questions and more. 

For analysis and etc excel would be best to use. Download all your bank transactions to excel for the period you want and then code them on there. Once coded you can do the forecast and do the analysis and see if it is worth keeping the property. 

Best practice is to keep security money in another account separate from your day to day transactions (mortgage, rental income, utilities, and etc).

This is a reason why I do cash flow forecast for my clients each month. Not only actuals but 3 years into the future as well. We make sure to include vacancies, Capex, and maintenance. We anticipate these cost a long with tenants not paying on time.

Use excel it is pretty easy to setup. Just need cash inflows, cash outflows, and discount rate. If you need help setting this up, please feel free to reach out. 

As far as keeping income and expenses just use excel. It is pretty easy to setup. Just download all your transactions monthly to excel and just code them there (rental income, security deposit, insurance, taxes, and etc). For tax it all depends on what your goal is. If you want a lower tax bill then you would want deductions immediately, if you want profitability in the short term then you would want to depreciate as that spreads depreciation expense over the years. There is a lot more that goes into taxes but that is just a start. Talk to a cpa that specializes in taxes and they can help you out. 

For one property just use excel. No reason to complicate it. Money comes in put under rental income and have different categories for expense (supplies, taxes, insurance, and etc). 

We create excel sheets for our clients. It can be simple or complex just depends on what the client wants.