Dec 4, 2017
#106: 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?
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!
For more, visit the show notes at http://affordanything.com/episode106