#106: How do you search for rental properties out-of-state? Should I offer a lease-option contract to my friends? How can I estimate repair and maintenance costs? And can you deep-dive into bookkeeping and taxes for rental real estate?

I tackle these four questions in this episode of Ask Paula - real estate edition.

Saul from Salt Lake City asks:

I'm converting the first floor of my home into a two-bedroom, one-bath apartment. My "hacked duplex" will soon be ready for my first tenant.

Can you deep-dive into the taxes and accounting? How should I keep records of my expenses, and what should I file?

Terri asks:

I'm analyzing real estate deals, but I'm getting stumped about how to estimate the repair, maintenance and capital expenditures.

It seems like everyone has a different approach for calculating this. Should I estimate a percentage of the purchase price? A percentage of the rental income? A flat amount per unit? Or something else? How can I estimate costs accurately?

Kirsten from Madison, Wisconsin asks:

My husband and I recently moved to Madison, but we've kept our old home in Oshkosh, Wisconsin. The home is worth $120,000, and we have a 15-year note.

Our friends would like to purchase that home, but their credit is bad. They'll need two years to improve their credit situation.

We're considering renting to them through a lease-option contract. Our mortgage is $950 per month; we're thinking of charging them $1,100 - $1,200 per month on a rent-to-own lease. Do you think this is a good idea?

Chrissy from North Vancouver, Canada asks:

I loved your description in Episode 92 about building a team in a different state.

Could you please further flesh out the steps that you use when you're searching for a rental property in a different state?

I tackle these four questions in today's episode. Enjoy!

For more, visit the show notes at http://affordanything.com/episode106 

Learn more about your ad choices. Visit podcastchoices.com/adchoices