Whether you own one rental property or many, you are running a business.
For a business to exist over the long haul, it must make a profit and it cannot bleed money.
Do-it-yourself investors can have a hard time keeping up with financial tracking. It requires time and effort above and beyond day-to-day responsibilities and enjoyments. It can get pushed to the back burner quite easily. In fact, I know some investors that hurry and scurry to enter all of their income and expenses right before tax time, having operated blindly for an entire year…
Can you relate?
But you can’t make good financial decisions throughout the year if you don’t know your numbers at any given point in time. This is one chore that our team here at Capital Street Management will take off of your plate!
The best news is that you maintain complete visibility through online statements. We will track your numbers, but you will still know them.
As an investor, you will need to know more than just the current financial statistics for your properties. You will also want to calculate the following numbers as your portfolio grows and changes:
- Tax implications for buying, selling, and owning your investment property.
- CAP rate for each property you own or consider buying.
- Projected costs of upcoming capital expenditures.
- Annual cost estimate for maintenance and repairs.
- Exit costs when you are ready to sell a property.
