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Secrets of Capital Expenses
Manage episode 479023003 series 3360841
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Learn the secrets of real estate maintenance and capital expenses Los Angeles.
This class is Module 32 of 46 in a series called Real Estate Investing Secrets.
Topics covered in this module include:
- What’s the difference between capital expenses and maintenance on a rental property?
- What do I need to do to have my rental property business be a “qualified business” to get the tax advantages from the IRS?
- A downloadable log to keep the required contemporaneous records for qualified rental property businesses
- Examples of traditional maintenance versus capital expenses on a rental property
- How to account for maintenance and capital expenses when analyzing deals (including a spreadsheet for analyzing deals that models both for you)
- Are paint and carpet considered maintenance or capital improvement?
- How to determine what maintenance percentage to use when analyzing deals with detailed example
- How the price of the property, rent and ultimately Gross Operating Income impacts your maintenance percentage
- The danger of low-priced rental properties in relation to maintenance and capital expenses
- How to completely due diligence for maintenance and capital expenses on your rental properties
- Your 3 options regarding maintenance and capital expenses... and why #1 is not a good strategy
- Using the BASIC version of “Maintenance and CapEx Estimator for Rental Properties”
- What are the shortcomings of using the BASIC version of “Maintenance and CapEx Estimator for Rental Properties” and how do we overcome them?
- Using the ADVANCED version of “Maintenance and CapEx Estimator for Rental Properties”
- Where to enter the output of the “Maintenance and CapEx Estimator for Rental Properties” into your deal analysis spreadssheet
- Why should you consider setting aside money at the start for known upcoming maintenance or capital expenses?
- Where do maintenance and capital expenses show up in our returns? And, why that’s not everything.
- Comparing buying a new construction property to a resale property in terms of maintenance and capital expenses
- As home price and rents decline, what tends to happen to maintenance and capital expenses?
- Rental property portfolio planning with capital expenses in mind
- Timing maintenance and capital expenses: two strategies explored
- Alternatives to saving for maintenance and capital expenses
- One way to get lucky with certain capital expenses and what to do if you end up being lucky
- A simple tool... properly timed and deployed... that could ultimately save you thousands of dollars on your maintenance and capital expenses
- Plus much more...
Check out the video and additional resources related to Secrets of Capital Expenses.
Free Real Estate Deal Analysis Spreadsheet: Download a copy of the newest version of The World's Greatest Real Estate Deal Analysis Spreadsheet™ by going to:
https://RealEstateFinancialPlanner.com/spreadsheet
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