Secrets of Capital Expenses

In this module (32 of 46 in the Real Estate Investing Secrets course), you will learn:

• 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, much more…

Secrets of Capital Expenses

Here are the slides from the presentation for your convenience…