In this episode, I'm going behind the scenes to share how I do bookkeeping as a rental investor.

This is the most important part of rental investing that no one is talking about.

But if you get it wrong, it can get you into trouble with your taxes and with your overall business.

So this is something you need to get right if you invest in rentals, and I'm going to show you how. Welcome to the podcast Real Estate Investing with Coach Carson. I'm your host

Chad Carson. You can also call me Coach Carson. This is a show to help you get out of the

financial grind so you can spend your time doing more of what matters. This episode was actually originally recorded on my friend Michael Zuber's channel,

one rental at a time.

So thank you to him for letting me share it with you.

Let's get started.

Because having good numbers,

I compare this to everybody's heard of or seen the movie The Matrix,

where Keanu Reeves is a cool guy who's, you know, dodging bullets and everything. But the coolest thing is he sees the entire world in numbers. And it slows down. The whole world slows down for him. And that's what I look at. When you understand the financials of your business, literally, you can see your entire business at numbers. That's what the pros, that's the way the pros do it,

the corporate people, but also the small, mighty investors, they see when there's good things happening. They see when there's bad things happening. And then those numbers can tell you when to jump in and solve something, fix something. They can tell you when to do something better. So yeah, I want to unpack, and I want to hear from you because I know you, you're a pro're doing this too. I like to compare notes and I want to share with people, just kind of a higher level of what my financials look like, how I track them, why I do it, how I do it. And then in the future, I unpack it even more. Yeah. So when I think about this, right, when you're just a W-2 employee, your taxes are kind of easy, right? You can almost do it yourself, which I wouldn't do that, pay, you know, get an accountant behind you. But anyways, but once you start running a business, which being a landlord is, the numbers, it's all about the numbers. And oh, by the way, you've got to be able to track them, right, because they're reporting to the IRS.

But really when you get the numbers right in my mind, not knowing where this conversation is going, is I can go back to day one of my books and look at how different buildings are performed.

Right.

Usually I'm buying junk.

So the first year's heavy capital investments.

Then after year two, year three, or four.

And I can start to see issues or challenges.

And one thing Olivia and I have done over the last, I want to call it two years is we've

taken the least, the worst performing property.

And again, it's not worst performing of the year, but of the last, probably the last five

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