How to organize my real estate portfolio?

Question

My business partner and I are in the process of buying our third rental property together. All 3 properties are under an LLC. What is the best way to organize our real estate portfolio? ie how to track income/expenses, budget for future repairs, keep track of all important tax documents, current leases, etc..

Daniel Hyman · Answer

It sounds like you have a multi member LLC, in which case you'll likely need a balance sheet as well as a profit and loss statement. That being the case, you'll want to make sure that any accounting software that you invest time and effort into will be able to generate those statements. Quickbooks Online is the software of choice for our firm and many other CPA's. I recommend QBO if you will be hiring a firm to help with the tax compliance and bookkeeping.

Eric DeVoe · Answer

Reece, my partner and I have an LLC and just purchased two properties. I investigated multiple products and to me Stessa made the most sense. The ability to link to our bank account, our mortgage accounts, and the property manager portals is fantastic. Additionally, being able to detail out each unit of the rentals (ours are MF) and even attach leases and other documents is key.

Lastly, is you take your time to split up the closing cost wire transfer in the system, you can keep the closing costs separate (Capital) separate from other transfers (Escrow, rent, etc.) and therefore keep your cashflow reporting accurate. I was also able to create separate building (27.5 year amortization) and land (no amortization) assets that are automatically calculated in the year-end tax summary.

I'd be happy to walk you through what I did as the learning curve was a bit step. Now that it's established though, the reporting and monitoring is fantastic.

Eric

Erickson Sainval · Answer

Something like QuickBooks or stessa are cheap.

How to organize my real estate portfolio?

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