Arden-Arcade Real Estate Investing & Real Estate Financial Planning™ Podcast

Learn the secrets of real estate maintenance and capital expenses Arden-Arcade.

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.