How do you search for rental properties out-of-state? Should I offer a lease-option contract to my friends? How can I estimate repair and maintenance costs? And can you deep-dive into bookkeeping and taxes for rental real estate?
I tackle these four questions in this episode of Ask Paula – real estate edition.
Saul from Salt Lake City asks:
I’m converting the first floor of my home into a two-bedroom, one-bath apartment. My “hacked duplex” will soon be ready for my first tenant.
Can you deep-dive into the taxes and accounting? How should I keep records of my expenses, and what should I file?
Terri asks:
I’m analyzing real estate deals, but I’m getting stumped about how to estimate the repair, maintenance and capital expenditures.
It seems like everyone has a different approach for calculating this. Should I estimate a percentage of the purchase price? A percentage of the rental income? A flat amount per unit? Or something else? How can I estimate costs accurately?
Kirsten from Madison, Wisconsin asks:
My husband and I recently moved to Madison, but we’ve kept our old home in Oshkosh, Wisconsin. The home is worth $120,000, and we have a 15-year note.
Our friends would like to purchase that home, but their credit is bad. They’ll need two years to improve their credit situation.
We’re considering renting to them through a lease-option contract. Our mortgage is $950 per month; we’re thinking of charging them $1,100 – $1,200 per month on a rent-to-own lease. Do you think this is a good idea?
Chrissy from North Vancouver, Canada asks:
I loved your description in Episode 92 about building a team in a different state.
Could you please further flesh out the steps that you use when you’re searching for a rental property in a different state?
I tackle these four questions in today’s episode. Enjoy!
P.S. – If you have a question you want answered, leave it as a voicemail here!
P.P.S. Need software to manage your rental properties? Collect applications, screen tenants, and collect rent online with Cozy.co/Paula.
Resources Mentioned
Saul’s Question:
Small business accounting software:
- Freshbooks.com/paula — use this link to get one month free
- Lessaccounting.com — enter “Afford Anything” in Settings >> Billing after you sign up to get one month free
How to Report Rental Real Estate Income and Expenses:
How to Recapture Expenses through Depreciation:
Congratulations to the winners of The Code of Trust book giveaway: Alex from Indiana, Kelsey from South Carolina and Michael from California.
Join the fun on instagram.com/paulapant, where I’ll host more book giveaways, share snippets of ideas/thoughts/wisdom, and more.
Got a success story you’d like to share with the community? Leave a voicemail and we could broadcast it on a future episode!
Thanks! See you next week!
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