[Anonymous]

I’ve just started investing in rental properties as a way to supplement my income each month. Anyone else here a real estate investor, landlord, property manager, real estate agent/broker? Any tips for the newbie?

[abranaugh]

I am not, but it seems interesting to me and eventually I would like to do something similar. If you are looking for a ton of information on real estate investing, I would check out https://www.biggerpockets.com if you haven't yet.

[Texan_Stuck_In_OK]

I have two investment properties: One residential house in the city where I live, and one condo-tel room in Myrtle Beach. The plan is to buy more when hubs gets back from his deployment. Check out biggerpockets.com, they have forums and podcasts that really help noobs 🙂

Feel free to click on my name and connect on LinkedIn.

A 88, B 76, F 84, R 76 Passed 2014

Licensed in OK

[rfc63]

I was a commercial real estate broker before making a change and getting into the accounting profession. Are you buying your own properties or are you looking at investing in a TIC or a Delaware Statutory Trust?

[Anonymous]

I've been buying my own residental properties. I have two currently. I'm thinking of getting rid of one of them because they voted on a bond issue and my property taxes have doubled. The investment is still profitable, but the margins are a little too tight for my liking. It's also located about 3 hours away from my home (its the house I lived in while in college and I moved to take a job and the house did not sell- so we started renting it out) and it's kinda a pain to manage. We have been lucky to know the people who have rented from us for the past 2 years and haven't had much trouble. But they are moving on and moving out, so now seems like a good time to divest.

I would love to get into commerical real estate, but I don't have the required capital right now.

[ocboa]

saved

[GulfCoastAccountant]

As others mentioned, Biggerpockets.com forums is a great resource to learn more than you need to know. I don't have any rentals currently, but I do a lot of tax work for people with rentals. I do plan on buying my first rental within the next 2 years.

I'll say this, not all rentals are profitable and make sure you buy positive cashflow properties only. Negative cashflowing properties are a quick way to bankruptcy. The rent needs to cover much more than PITI (principle, interest, tax and insurance) in order for it to work out better for you in the long run.

Leveraging the properties increases your return % exponentially, but it also increases your risk. You got to find a balance that allows you to sleep at night.

F - 7/31/14 - PASSED
A - 8/30/14 - PASSED
R - 2/12/14 - PASSED
B - 11/30/14 - PASSED

[Anonymous]

Gulfcoast- where are you located?

[GulfCoastAccountant]

Corporette – near Biloxi, MS. You?

F - 7/31/14 - PASSED
A - 8/30/14 - PASSED
R - 2/12/14 - PASSED
B - 11/30/14 - PASSED

[Anonymous]

GulfCoast- I'm from Diamondhead.

[Texan_Stuck_In_OK]

@GulfCoastAccountant I was stationed in Biloxi for a little while, miss it!

I have been looking for a good reference on accounting/tax for rentals. I have the Schedule E mapped out, but is there anything better that will help with it? My broker has approached me about doing his taxes.

A 88, B 76, F 84, R 76 Passed 2014

Licensed in OK

[GulfCoastAccountant]

Corporette – Nice. I'm from Ocean Springs. Wasn't sure if you'd know where that was so I said Biloxi, but now I see you probably do if you're from Diamondhead.

F - 7/31/14 - PASSED
A - 8/30/14 - PASSED
R - 2/12/14 - PASSED
B - 11/30/14 - PASSED

[GulfCoastAccountant]

Texan – Awesome. Keesler AFB people are the best ones to rent to! haha

Just keep track of all your expenses. You'll have to factor in depreciation, improvements, etc at tax time. If you just want to keep up with what you spent, etc, I'd just use an off the shelf accounting product. QuickBooks or something.

As far as preparing the tax return – there are way too many things to look for to describe in this forum post. I'd suggest meeting with a local CPA that does taxes and get a basic record keeping system setup that they recommend.

F - 7/31/14 - PASSED
A - 8/30/14 - PASSED
R - 2/12/14 - PASSED
B - 11/30/14 - PASSED

[Anonymous]

GCAccountant- Oh yeah. Definitely. Is there a way we could exchange emails privately on this think or connect on Linkedin or something. I'd love to pick your brain about leveraging, CPA study questions, ect.

[GulfCoastAccountant]

Corp – Not sure how we do that on here haha. No private message feature

F - 7/31/14 - PASSED
A - 8/30/14 - PASSED
R - 2/12/14 - PASSED
B - 11/30/14 - PASSED

[Anonymous]

Well dang. Scratch that.

[Author]

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