All Forum Posts by: Markus Shobe

Estimating operating costs for a new short-term rental can be tricky, but a few general rules of thumb can help. For insurance, expect to pay about 0.5% to 1.5% of the property value annually, while property taxes can range from 0.5% to 2%. Utilities might cost between $150 and $400 monthly. Maintenance and repairs usually account for 1% to 2% of the property value each year, and if you use a property management company, expect to pay them 10% to 30% of your rental income. 

Our firm is very familiar with flips. We would love to talk to you and see if we are a good fit. 

QBO can work. There are different ways to set it up. You can setup properties by using classes or customers. Once it is setup correctly it is not to bad to maintain going forward. All of my real estate investor clients use Quickbooks online. 

Max Emory, Todd Lennig, and myself. 

There are a lot of great bookkeepers here on BP. 

For bookkeeping and financial management, using accounting software such as QuickBooks, Xero, or Wave can streamline the process. Regular reconciliation of accounts and maintaining a clear separation between personal and business finances is crucial. For yearly filings, ensure you are aware of and adhere to state-specific requirements for annual or biennial reports, and timely file both federal and state taxes using software like TurboTax or H&R Block, or consult a tax professional if needed. Keeping documents organized with cloud storage solutions like Google Drive or Dropbox is also highly beneficial.

For compliance, using templates for meeting minutes and maintaining a compliance calendar can help manage important dates for filings, renewals, and meetings. Tools like LegalNature offer templates and document storage for compliance purposes. Additionally, using management tools such as Gusto for payroll and benefits, Trello or Asana for task management, and Evernote or Notion for document organization can enhance efficiency.

Yes, it's possible to manage an out-of-state short-term rental without a property manager, but it requires careful planning and the right tools. You'll need reliable local contacts, such as a cleaning crew and maintenance professionals, who can handle on-the-ground tasks. Using technology like smart locks and home automation can help you manage check-ins and monitor the property remotely. Good communication with guests and a well-organized system for handling issues are also crucial. While it's more work, many owners successfully manage their rentals this way and save on management fees.

Deciding whether to use one LLC for all your real estate properties or separate LLCs for each comes down to balancing simplicity and cost against liability protection and flexibility. Using a single LLC is simpler and cheaper but puts all properties at risk if one faces legal issues. On the other hand, separate LLCs for each property provide better protection but are more complex and costly to manage. Some investors use a hybrid approach, grouping properties by type or value into different LLCs. Considering state laws, fees, insurance, and tax implications can help you choose the best structure for your situation. Given your background in bookkeeping and real estate, you likely have a good sense of your capacity and risk tolerance, but consulting a legal professional might still be a good idea.

I would have two accounts, personal or business is fine. Have one account for the rents and expenses and the other account for tenant deposits. 

My clients use QBO. Getting it setup for real estate takes a little bit of time, but once it is setup it works very well. Most CPA's are familiar with Quickbooks.