Portfolio analysis software.

5 Replies

Any recommendations?  Would like to track all properties individually as well as the entire portfolio.  Do not need management software as I sub that aspect out.  Just looking to analyze the performance of my real estate investments.  Thanks for any help.

@Daulton H.

Hey Daulton!

So, in order to do this, you’ll need two things:

1) accurate and consolIdated accounting with all of the details entered correctly. Up to date and knowledgeable bookkeeping will give you the raw and aggregate data points you’re looking to use. Quickbooks is great for this!

2) knowledgeable financial analysis that measures the “right” KPIs and ratios you’re looking for. You’ll find that there’s a lot of different financial analysis software options, and a lot of them work with Quickbooks. You’ll also find that these softwares can be expensive for the kind of analysis you’re looking for.

Personally, I like to make sure #1 is perfect before trying to start #2. Some of this “advanced reporting” is amazing, but most of it you can do by dividing two numbers you find in your accounting software. Best case, you have your bookkeeper or accountant put together some custom reports giving you the numbers you’re looking for. Depending on what you’re looking for this could be free or cheap as an additional service.

@Daulton H. Good question! @Mohammad (Asad) Asaduddin

First of all, make sure you have a separate bank account from all personal expenses. You can get granular and have an account for each property within QuickBooks Online.

Even if you have just one bank account for rental activities you can set up "Classes" and have each property be a class. 

That way, when you reconcile each month, you can categorize each transaction (repairs, paint, cleaning, etc) and classify each transaction to a property (123 Main Street, 123 Easy Street). 

I agree with the comments above, QuickBooks Online and using classes is the way to go.  It allows you to line up your income statements for each property and compare each expense account to all other properties.  That helps highlight your problem areas.  

For my properties, I go one step further and add a short description to each transaction.  It is especially useful for tracking repairs and maintenance as you can drill down for any period of time and get a quick report of everything that has been done (... didn't they just repair that shower in 2nd bath at 123 Main Street last year or was that Easy Street?).  

One last benefit is if you have multiple property management companies in different cities providing reports in various formats it can be difficult to compare your investments with each other.  By entering everything into QuickBooks you can bring all the square and round pegs together in one clean format.  

QuickBooks does have a learning curve to it, but I cannot imagine how you keep track of your portfolio without it.

I currently use PropertyTracker.com, but it’s got some quirks and bugs.  I’m looking into Quickbooks online, but I need some handholding on getting it set up properly.