A Positive For Real Estate Businesses After Paying Taxes

Are your taxes depressing you? There's a bright side when you look at the big picture of your numbers.

Is this you? You just made around $100,000 in rental income and then most of that income went towards expenses. At first glance that sounds horrible. We know!

But let's focus on positive. Have you thought about a few of these things?

• Do you have a mortgage on those properties? If so, check to see what the principal pay down was for the year. You can consider that a "forced" savings.

• Property value always appreciates over time.

• How much equity did you build? You didn't lose anything.

Now, sometimes we bite off more than we can chew. If this is the case, and it's negatively affecting your family and life - it's sometimes better to cut your losses. But if your real estate projects are a side gig - it can be okay to push through.

Just remember, negative cash flow is not loss - this is the business. We’re playing the long game. You can’t just look at cash flow - this is why bookkeeping is essential. Because without proper bookkeeping, you won't even know if the numbers you are looking at are the correct picture of your business. If you look at your financial reports each month, you will be able to see if there's a hole in the bucket. Ultimately you want to make more - so you'll be able to determine if you need to raise the rent, sell a unit, change from short term to long term rentals or vice versa, do something yourself rather than contract it out, shop around on prices for landscaping, etc. Once you're looking at your reports, you're able to make strategic decisions and you're not longer at the mercy of feelings and opinions that could be wrong.

If you still need to outsource bookkeeping, get a free estimate today!