All Forum Posts by: Michele B.

I agree that QB is a powerful program for accounting. However, there is a big learning curve. For example, the terminology is completely different. You don't have tenants or expenses, it is called something else. Also, QBO is different from the desktop version, so any step by steps for desktop useless when using QBO.

Shane and Michelle, do you have any sources or information that is available on Landords using QBO properly?

I am an accountant and I know a lot of people using QB for their needs, there is a special QB for RE . That would be the best for an investor. I like it and it works with QB Pro for me so I can do the taxes from that.

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I would definitely talk to a tax accountant on this. You will be able to use some expenses but without knowing all the facts I would opt to using that as something you can depreciate offsetting income for future years.

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Originally posted by @Sylvia King:

I have a similar situation that I really need some advice on. My husband and I own 68 acres in the country and is planning to build our home on it. This will be our permanent residence. The land is owned free and clear. I was wondering what the risk are for using the land equity as down payment. We don't want/need a mansion. Just a normal house. I expect the land to value around 25,000, the amount we need to borrow will be around 225,000 (without factoring in land equity if we choose to go that route), and I'm guesstimating that the house will appraise for about 200,000.

Our bank told us in the past that they loan 85% of the appraised value of the house that will be constructed. We have not talked to them or any other banks about the land equity but will within the next couple of weeks. We also will have 10,000 cash down payment (I know that sounds very meager but it is what it is).

Has anyone gone through this process that can testify first hand what it was like? Will the land equity down payment act like the cash down payment in lowing the monthly mortgage amount? Or does it only secure the loan.

68 acre worth???? 25,000 ????I don't know any land going for less than 3k and that is swamp land.....I would get a real price for that land to start with. I bought land 22 years ago that is in the middle of no where and it was 3k an acre now worth 10 k an acre. Land is a commodity there is only a finite amount of land on earth and it has value.

Good Luck!

If you have any other questions please tag me.

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I am confused on the numbers that others are running.....

Please tell me the numbers straight

selling price 300k

mortgage 225,000

insurance ???

taxes ????

garbage ???
electric ???

Heat ????

miscellaneous ????

length of the loan with hard money ???

Percentage rate 7.5 Correct?

I am not seeing this as a negative cash flow

It is a huge down payment 75k

It will cash flow if the loan is for 20 years or longer

You would not be able to use that 75 k anywhere else. so time value of money I would say is not great but it equity.

Please tag me with your responses so I can redo these numbers and make sure I am correct.

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I agree with the aforementioned ideas. Mobile homes are not considered as the same as a home, unless it is stick build basement and came in on two pieces in some states. You really need to look into this. You will also need to know how many lots this is. If it is all on one then you will need to get it appraised. You can save yourself lots of headaches if you buy this with another kind of financing other than hard money. Hard money is good but not in this case.

If you have any other questions tag me and I will respond.

1 Vote

With the new numbers you are showing i would refi this house you can lower the payments and become cash flowing. In the refi you might even be able to take out some for another purchase. Work the figures.

If you have any questions tag me and I will try to respond

1 Vote

Originally posted by @Andrew Lawrence:

Yes, thanks for your replies I have tried to use the calculator to illustrate what I sort of see. This is my first time playing with this calculator so I apologize if it is done incorrectly. I tried using the BRRR calculator but it doesnt seem to work the way I intended, so the first PDF shows what I think Year 1 should look like if I lived there and occupied one of the units "house hacking". While the second PDF shows Year 2 after I refinance when it has 20% equity and I move out and rent out the 4th remaining unit. I know the first time is going to be painful but I am keeping my hopes up that after the 2nd property this should go more smoothly but it looks good to me, but I would like some opinions, would this be considered a deal for you?

Year 1:

https://www.biggerpockets.com/calculators/shared/173855/64367e94-011d-4d9a-91cd-35177ae6ae6d

Year 2: (Refinance)

https://www.biggerpockets.com/calculators/shared/173855/1fc967ee-18aa-4a33-bf6b-5696e4e4a0d4

Okay so you buy this property and put in 5k of money and it is then worth only 5k more....waste of money......why spend five to get five?

second in the second year you have refinanced and the rate is now 4% good luck on that.

what I see is you losing money the first year to refinance and lose more money the second year because you % rate is wrong and because you will have closing costs all over again bringing your loan up by around 10k more for refinancing.

Not sure why you want to refinance then.

SO what I am saying is run.....this is not a deal it is a losing money pit.

If you could buy it for 480k and add some value then it might work

If you buy this house I do not see you going forward but backward. Just my opinion.

You need to find a deal that is cash flowing when you rent out the other three.....Anything less than this you are hurting yourself.

My advice find a better deal or offer 480k.

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I agree with Kenny Dahill. Get the longer term loan and pay it off early as long as that is allowed. Also to protect yourself the more you owe on the property the harder it is to get sued.

Good Luck!

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All Forum Posts by: Michele B.

Michele B. has started 12 posts and replied 543 times.

Post: 20-50 unit New Construction Apartment Buildings

Post: Need help finding funding

Post: Quickbooks or something else?

Post: Tax help! deductions for EOY and no rental income yet to offset!

Post: Using Land As Collateral For Construction Loan

Post: Thinking of buying a fourplex...deal analysis

Post: Can I Obtain Properties Using This Method?

Post: Best Options for a Negative Cash Flow Property

Post: Multifamily property sellers pricing question

Post: First Rental: Pay off in 5 or 30 year am?